TMI Blog1996 (6) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... restored ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in not passing an order conformably to the decision of the hon'ble High Court of Judicature of Kerala in its findings ?" Income-tax Reference Nos. 23 to 26 of 1987 relate to rectification orders dated January 8, 1985, in regard to which the following question is required to be answered: "Whether, on the facts and circumstances of the case, it could be stated that there was no mistake apparent from the face of the records to be rectified in the orders dated January 8, 1985, passed under section 260(1) of the Income-tax Act, 1961 ?" Counsel for the parties placed before us that the decision in Income-tax References Nos. 19 to 22 of 1987 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ree assessees could be understood to have been appointed as trustees satisfying the requirements of section 160(1)(iv) of the Income-tax Act, 1961, entitling them as a consequence to the benefit of section 161 of the Act. As a consequence, the Income-tax Officer completed the assessment on the basis of treating the three assessees as a "body of individuals". The first appellate authority, the Appellate Assistant Commissioner, held otherwise holding that the relief under section 161 could be available to the three persons as representative assessees. The record shows that the Revenue Department preferred appeals to the Tribunal along with the filing of cross-objections not for any particular relief but by way of support to orders of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind mention of the intention of beneficiaries in handing over the inventories to Reddiar or the intention of Reddiar to receive them. This court has also emphasised that the beneficiaries are the partners of four firms whose assets are listed in the inventories as well as four minors who had been admitted to the benefits of the concerned partnerships. This court has also emphasised that the assets received and handed over to Reddiar are stated to have been received as "nominees of the respective beneficiaries". In the ultimate analysis, this court has held that there was no authority to create a trust in respect of the properties as well as for the benefit of the beneficiaries. As regards the identity of the trust assets the question also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel before us and we find that it was also contended before the Tribunal with equal force that when the High Court held that there was no valid trust, the situation going to the very root of the existence of the trust, it cannot be said as a consequence that a "body of individuals" came into existence as a direct consequence in regard thereto and if that be so automatically, it cannot result in the process of assessment in the name of the assessee as a "body of individuals". Learned counsel further contended that such a direct conclusion on the basis of the finding that there is no trust would be an unjustified jump. This attractive argument of learned counsel before us ignores as to what is the situation of finality in exact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. Income-tax References Nos. 23 to 26 of 1987 relate to the contention requiring rectification as regards the order of the Tribunal dated January 8, 1985, passed by the Income-tax Appellate Tribunal, Cochin Bench, in pursuance of the order of this court dated July 23, 1984, in Income-tax Reference No. 83 of 1978 (CIT v. Seematti Trust [1985] 154 ITR 771), referred to above. The question that expects answer in these references is as follows: "Whether, on the facts and circumstances of the case, it could be stated that there was no mistake apparent from the face of the records to be rectified in the orders dated January 8, 1985, passed under section 260(1) of the Income-tax Act, 1961 ?" It was sought to be contended in su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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