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TMI Blog1984 (2) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... st and realised capital gains of Rs. 8,064. The case of the assess was that this capital gain of Rs 8,064 was not liable to capital gains tax because section 80T(a) of the Income-tax Act, 1961 (' the Act ') (as it stood then) exempts capital gains from tax if the gross total income of the assessee did not exceed Rs. 10,000. The income of the assessee during the year consisted of Rs. 9,750 from dividend and Rs. 8,092 from capital gains. There was an item of expense being audit fees of Rs. 100. Hence, the balance came to Rs. 17,750. The assessee claimed that it had distributed a sum of Rs. 9,658 (being the net income from dividend only) to the sole beneficiary as per the terms of the trust deed and so the said amount should be deducted from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any amount under Chapter VIA of the Act. He urged that there is no provisions under the Act for deducting the amount payable by the assessee to the beneficiary in order to arrive at the ' gross total income '. Hence, he urged that the order of the AAC deserved to be reversed and that of the ITO deserved to be restored. 6. Shri Dilip Chokshi, the learned representative for the assessee, on the other hand, supported the order of the AAC. He stated that the trust deed is silent as to what is to be done in the case of profits and surpluses arising out of the conversion of the assets held by the trust. The trust deed says that the income arising out of the corpus of the trust should be given to the beneficiary. It also says that the truste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxed in the hands of the beneficiaries could not be taken into account for determining the ' total income ' of the trustees for the purpose of section 114 of the Act. Shri Dilip Chokshi urged that the instant case comes within the ratio of the aforesaid decision. 7. Shri K.K. Tuli replied that the aforesaid decision is distinguishable because it was concerned with the ' total income ' of the trustees but not the ' gross total income ' of the trustees as defined under section 80B(5) and so the aforesaid decision is of no help to the assessee. 8. I have considered the contentions of both the parties as well as the facts on record. The question that is raised in this appeal is whether the amounts paid by an assessee-trust to the benefici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rage rate under section 114 at which the capital gains had to be taxed. The High Court held that an income which has already been assessed under a different section in the hands of a different assessee cannot again be included in the ' total income ' of the assessee-trust. The point to note in this decision is that section 114 is not a part of Chapter VIA nor is section 280-0. Hence, the principle laid down in this case relating to the determination of ' total income ' will also apply to the determination of ' gross total income ' except in a case where the amount to be deducted belongs to one of the aforesaid two categories which have been expressly excluded in the definition of ' gross total income '. In other words, the principle of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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