Sponsored
    Follow Us:

Case Law Details

Case Name : Jai Trust Through its current trustee Vs Union of India (Bombay High Court)
Appeal Number : Writ Petition No. 71 of 2016
Date of Judgement/Order : 08/03/2024
Related Assessment Year : 2010-11
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

Jai Trust Through its current trustee Vs Union of India (Bombay High Court)

The case of Jai Trust, represented by its current trustee, against the Union of India, as adjudicated by the Bombay High Court, delves into the legality and validity of a notice issued under Section 148 of the Income Tax Act, 1961, and the subsequent order rejecting objections raised by the petitioner against the reopening of assessment for the Assessment Year 2010-2011.

Jai Trust transferred shares of United Phosphorus Limited (UPL) and Uniphos Enterprises Limited (UEL) to Nerka Chemicals Private Limited (NCPL) through a gift deed dated 26th February 2010, without receiving any consideration. In its income tax return for the Assessment Year 2010-2011, Jai Trust declared a total income of Nil, as its income was distributed among beneficiaries. The return duly disclosed the shares transferred as gifts.

Subsequently, Jai Trust received a notice under Section 148 of the Income Tax Act in March 2015, alleging that income had escaped assessment. The trust raised objections to the reopening of assessment, citing previous court judgments, the exemption of capital gains on gift transfers under Section 47(iii) of the Act, and the absence of provisions allowing the adoption of market value as consideration for computing capital gains on share transfers.

The objections raised by Jai Trust were rejected by the Assessing Officer, prompting the trust to file a petition challenging the notice and subsequent order. The Bombay High Court meticulously examined the contentions raised and rendered a detailed judgment.

Please become a Premium member. If you are already a Premium member, login here to access the full content.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031