TMI Blog2004 (1) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... n the employer company and certain persons as trustees of the said trusts in the year 1982. These trusts had filed returns for various years and tax at normal rate applicable to AOP was accepted in the returns of income filed by them vide assessment/intimation prepared under s. 143(1). However, the AO from asst. yr. 1996-97 held that all these trusts are liable to pay tax at maximum marginal rate under s. 164(1) of the IT Act. Learned CIT(A) confirmed such action of the AO. 3. All these assessees have raised the common grounds in these appeals, as under: "1. That the learned AO has wrongly framed the assessment of the trust as an AOP in terms of s. 164(1) instead of cl. (iv) of proviso to s. 164(1) as claimed by the assessee. 2. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taining to all these years are similar. He submitted that the rule of consistency provides that if the facts are similar, the earlier view taken on similar facts should be followed in subsequent years also. He relied upon the decisions in the cases of CIT vs. ARJ Security Printers (2003) 183 CTR (Del) 323 : (2003) 264 ITR 276 (Del) and Radhasoami Satsang vs. CIT (1991) 100 CTR (SC) 267 : (1992) 193 ITR 321 (SC). Learned counsel also drew my attention to the various clauses of the trust deeds to show that these trusts have been created exclusively for the purposes of the benefit of the employees of the cycle companies. Learned counsel also pointed out that some of these trusts in asst. yr. 1995-96 or other years have given interest-free loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough the orders of the learned Departmental authorities. I have also carefully gone through the various decisions relied upon by the learned counsel. The genuineness of the aforesaid trusts has not been doubted by the learned Departmental authorities in their respective orders. The proviso in cl. (iv) to s. 164(1) is extracted below for the sake of convenience: "(iv) the relevant income is receivable by the trustees on behalf of a provident fund, superannuation fund, gratuity fund, pension fund or any other fund created bona fide by a person carrying on a business or profession exclusively for the benefit of persons employed in such business or profession." All these trusts have been created exclusively for the benefit of the employ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax in the manner prescribed by s. 164(1)(iv) of the IT Act, as hitherto. Similarly, in the cases of registered societies, trade and professional associations, social and sports clubs, charitable or religious trusts, etc., where the members or trustees are not entitled to any share in the income of the AOP, the provisions of new s. 167A will not be attracted and, accordingly, tax will be payable in such cases at the rate ordinarily applicable to the total income of an AOP and not at the maximum marginal rate." The assessee-trusts have been created for the welfare of the employees of the employers companies which are within the ambit of expression 'any other fund created bona fide by a person carrying on a business exclusively for the ben ..... X X X X Extracts X X X X X X X X Extracts X X X X
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