9911796707
TMI Blog1989 (11) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... carried on commission agency business at various places under the name and style of 'Kirorimal Pansari & Co'. The trust for the asst. yr. 1983-84 filed IT return declaring income of Rs. 96,780. The column "status" in the return was left blank but at page 2 it was asserted that no tax was payable by the trust, beneficiary was to be separately assessed. How-ever in the acknowledgement filed with the return it was stated that status of assessee was "AOP". 3. The ITO as per assessment order dated 27th March, 1986 made assessment at total income of Rs. 7,74,880. He made several additions and disallowance. The status of the assessee was taken as "AOP". With reference to person to be assessed the ITO recorded deposition of settler and alleged tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sri Madanlal Agarwal the so called settlor of the meagre sum of Rs. 500. He carried on business of the Pansari Family Trust in the name of Kerorimal Pansari & Co. whereby no outsider could have any idea of the so called Trust behind, and one would normally take the business of his in whatever capacity it may be prior to starting of the business under the name Kerorimal Pansari & Co. He was partner of M/s Gourisankar Shyamsundar of the same address, having 50 per cent share therein and the nature of business was commission agency in Juggri (Gur) and identical business was also carried on in the name of Kerorimal Pansari & Co. Sri Kerorimal Pansari is a solvent person as it appears. In the business under the name Keorimal Pansri & Co. shown ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITO's observation extracted above showed that he treated constitution of Pansari Family Trust' as an eyewash and held that the trust was not genuine. It seems to us that the ITO intended to hold that the income in question belonged to Sri Kerorimal Pansari but did not record a clear finding. Only his relationship with Sri Madanlal Agarwal the alleged settlor "he is a solvent person" and is "assessed to tax" is stated. It has not been clarified as to how and why income is being assessed in the status of "Association of Persons" (AOP). Who are these associated persons earning assessable income. Association of trustees or trustees and beneficiaries. The association if any shown in the deed could not have been assessed as the deed is held to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is proper and valid assessment." 8. There is evidence on record that till the last date of hearing, i.e., on 25th March, 1986 the assessee appeared before the assessing officer with books of account and other materials. These books etc were thoroughly examined by the assessing officer. The assessee no doubt could not produce confirmation from nine parties mentioned by the ITO in order sheet entry dt. 25th March, 1986. But non-production of confirmation from outside parties cannot be treated as non-compliance of terms of notice issued under s. 142(1) of the Act. The outside parties might not oblige the assessee by giving confirmations, but the same cannot be treated as non-complicane of notice under s. 142(1). It is another matter that fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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