Rc/53/1998 Of Commr.of Income Tax Vsp v. Garapati Family Trust Kakinada

THE HON’BLE SRI JUSTICE V.V.S.RAOANDTHE HON’BLE SRI JUSTICE B.N.RAO NALLAREFERRED CASE Nos.262 of 1996; 39 and 53 of1998 Dated:08.12.2011 Between: The Commissioner of Income Tax,Visakhapatnam. …Applicant and M/s.Rajya Lakshmi Family Trust,Kakinada,And others. …Respondents THE HON’BLE SRI JUSTICE V.V.S.RAOAND THE HON’BLE SRI JUSTICE B.N.RAO NALLA REFERRED CASE Nos.262 of 1996; 39 and 53 of1998 COMMON ORDER:(Per Hon’ble Sri Justice V.V.S.Rao) As a common issue would arise in all these threeReferred Cases, they are being disposed of by thiscommon order. In R.C.No.262 of 1996 at the instance of theCommissioner of Income Tax, the Income Tax AppellateTribunal, Hyderabad Bench “B”, referred the followingquestion for the opinion of this Court. Whether on the facts and in the circumstances of the case, the Tribunal isjustified in directing the A.O to tax at themaximum marginal rates only the income ofeach beneficiary and not the aggregate incomeof all the beneficiaries in the hands of theTrust? In R.C.No.39 of 1998 at the instance of theCommissioner of Income Tax, the Income Tax AppellateTribunal, Hyderabad Bench “B”, referred the followingquestion for the opinion of this Court. Whether on the facts and in thecircumstances of the case, the Tribunal isjustified in directing the A.O to tax at themaximum marginal rates only the income ofeach beneficiary and not the aggregate incomeof all the beneficiaries in the hands of theTrust? In R.C.No.53 of 1998 at the instance of theCommissioner of Income Tax, the Income Tax AppellateTribunal, Hyderabad Bench “B”, referred the followingquestion for the opinion of this Court. Whether on the facts and in thecircumstances of the case, the Tribunal isjustified in directing the A.O to tax at themaximum marginal rates only the income ofeach beneficiary and not the aggregate incomeof all the beneficiaries in the hands of theTrust? The question referred is squarely covered by ouranswer in R.C.No.229 of 1996, dated 25.11.2011. Following the same, the question is answered in theaffirmative in favour of the assessee and against theRevenue. These Referred Cases shall stand disposed ofaccordingly. _______________ (V.V.S.RAO, J) 08.12.2011vs ____________________ (B.N.RAO NALLA, J)