Rc/66/1996 Of The Comm.of Income Tax.hyd v. G.v.family Trust Hyd

IN THE HIGH COURT OF JUDICATURE ANDHRA PRADESH ATHYDERABAD MONDAY THE TWENTYSECOND DAY OF FEBRUARYTWO THOUSAND AND TEN PRESENT THE HONOURABLE SRI JUSICE B. PRAKASH RAOAND THE HONOURABLE SRI JUSTICE REDDY KANTHA RAO REFERRED CASE No. 6 6OF 1996 {under section 256 (1) of the Indian Income Tax Act, 1961 in RA.No. 716/Hyd/95 dated 26-2-1996Andhra Pradesh of ITAT Hyderabad Bench ‘A’} Between: The Commissioner of Income-taxAndhra Pradesh-II, Hyderabad. …. Petitioner V/s. G.V. Family Trust,Hyderabad. …. Respondent Counsel for the Applicant : Sri S.R. Ashok Senior Counsel Counsel for the Respondent: Sri G.Pavan Kumar THE HONOURABLE SRI JUSTICE B. PRAKASH RAOANDTHE HONOURABLE SRI JUSTICE REDDY KANTHA RAO REFERRED CASE No. 6 6of 1996 J U D G M E N T: (Per the Hon'ble Sri Justice B.Prakash Rao) RC.No. 66 of 1996 is referred to this Court by the Income-Tax Appellate Tribunal, A.P., Hyderabad under section 256 (1) of the Indian Income Tax Act, 1961 in RA.No. 716/Hyd/95 dated 26-2-1996 Andhra Pradesh of ITAT Hyderabad Bench ‘A’ on its file fordecision on the following questions of law viz., Whether on the facts and in the circumstances ofthe case, the Appellate Tribunal was correct in law in holding that the maximum marginal rate chargeable under the provisions of section 161(1-A) was to be applied on the whole of the incomeof each beneficiary and not on the aggregate of theincome of all the beneficiaries in the hands of thetrustees ? 2. Heard the learned standing counsel for the petitioner andthe learned counsel for the respondent. 3. Having regard to the question, which is arising under thisreference made under section 256 (1) of the Indian Income Tax Act,especially in regard to the maximum marginal rate chargeable undersection 161 (1-A) to be applied on the whole income of eachbeneficiary and not on the aggregate income of all the beneficiaries in the hands of trustees. 4. As already submitted by both sides, the question under thisreference made under section 256 (1) of the Indian Income Tax Act,1961 is no longer res integra and it is squarely covered by thejudgment of this court in RC.No. 42 of 1993 dated 22-12-2004 andalso RC.No.258 of 1996, dated 25-6-2009, wherein this Court heldthe question under reference in favour of the assessee. 5. Following the judgment of this court in RC.No. 42 of 1993dated 22-12-2004 and also RC.No.258 of 1996, dated 25-6-2009, thequestion referred to is answered in favour of the assessee. 6. Accordingly, RC.No. 66 of 1996 is disposed of. No costs. __________________________ JUSTICE B. PRAKASH RAO______________________________________ JUSTICE REDDY KANTHA RAO22-02-2010.I s LTHE HONOURABLE SRI JUSTICE B. PRAKASH RAO ANDTHE HONOURABLE SRI JUSTICE REDDY KANTHA RAO REFERRED CASE No. 6 6 OF 1996 Judgment of the Division Bench delivered bythe Hon'ble Sri Justice B.Prakash Rao) Circulation Entry No. 131Date: 22-02-2010COMPUTER No. 43Court Master: I s L