Case Law Details
Ramgopal Thirani Family Trust Vs DCIT (ITAT Kolkata)
We observe that the claim of assessee is that it is a Private Beneficiary Trust and thus, it was required to file its return of income on ITR-5, but inadvertently it filed ITR-7, which is meant for charitable trust claiming exemption(s). Before ld. CIT(A), it was submitted by the assessee that it tried to file revised return, but failed to do it and the rectification application filed thereafter could not bring any relief claimed. It was also submitted before ld. CIT(A) that the assessee is a Private Beneficiary Trust with the determinate percentage of share and thus, liable to be taxed in the manner of an individual and since the income of the assessee trust is less than the prescribed limit of income, not chargeable to tax, in case of an individual no tax was payable.
We further observe that the assessee could not file any evidence to establish that it is a private beneficiary trust with a determinate percentage of share. For lack of this evidence, the ld. CIT(A) dismissed the assessee’s appeal. We, therefore, in the interest of justice and being fair to both the parties deem it fit and proper to restore the issues raised in this instant appeal to the ld. CIT(A) for fresh adjudication with a liberty to the assessee to file the necessary evidence(s) to prove that it is a private beneficiary trust with the determinate income percentage of share and is liable to tax in the manner of an individual. Needless to mention that the assessee be provided reasonable opportunity of being heard. The assessee is also directed to remain compliant and not to take adjournment unless otherwise required for reasonable cause. In case the assessee is not able to file necessary evidence, then ld. CIT(A) can proceed as per law.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This appeal of the assessee for the assessment years 2016-17 is directed against the order dt. 01-08-2021 passed u/s. 250 of the Income-tax Act, 1961 [ hereinafter, referred to as ‘the Act’] by the ld. Commissioner of Income-tax, Appeals [ in short, hereafter referred to as ‘the ‘ld. CIT(A), National Faceless Appeal Centre(NFAC), Delhi, which are arisen from the order/intimation dt. 07-06-2019 passed u/s. 154 r.w.s 143(1) of the Income-tax Act by the Assessing Officer (AO), D.C.I.T.(CPC).
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