Law:

Section:

Section 143 of the Income-tax Act, 1961 - Assessment - Additions to Income Where Assessing Officer clubbed income of a trust with assessee's income but in respect of earlier assessment years in assessee's own case as well as in case of said Trust, Commissioner (Appeals) as well as Tribunal had given a finding that trust was a genuine one and that Assessing Officer was wrong in clubbing income of said Trust with assessee's income, no question of law arose from Tribunal's order deleting addition of trust's income [In favour of assessee] [Assessment years 2000-01 and 2001-02] CIT v. Sri Ranganathar & Co. [2009] 316 ITR 252 (Mad.) The assessee was a civil engineering contractor and petrol products dealer for Indian Oil Corpn. While completing the assessments, the Assessing Officer was of the view that the income of the trust, namely, Sri Balaji Trust, had to be included in the total income of the assessee as the members of the AOP, i.e., the assessee and the trustees of the alleged trust, were one and the same and the income of the trust was being enjoyed by the members of the AOP only. Further, it was found out that the assessee AOP itself had availed of benefit under the scheme of KVSS and paid the tax arrears for the earlier year wherein it has preferred to club the income of Sri Balaji Trust with the income of the assessee AOP from the assessment year 1987-88 onwards. Hence, the Assessing Officer clubbed the income of Sri Balaji Trust in the case of the assessee. The Tribunal held that the clubbing was unjustified. Held that in respect of the earlier assessment years in the assessee's own case as well as in the case of Sri Balaji Trust, the Commissioner (Appeals) as well as the Tribunal had given a finding that the trust was a genuine one and that the Assessing Officer was wrong in clubbing the income of the said Sri Balaji Trust with the assessee's income. In the present case, the Tribunal followed its earlier order and held that the Assessing Officer could not club the income of Sri Balaji Trust with the income of the assessee. The Tribunal correctly followed its earlier order as the facts involved in the present case were the same as in the earlier…

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