COMMISSIONER OF INCOME TAX Vs. PRINCESS USHA TRUST

JUDGEMENT

(1.) THIS order shall also dispose of Misc. Civil Case No. 46 of 1982 (Commissioner of Income-tax, Bhopal v. Princess Usha Trust, Indore) and Misc. Civil Case No. 47 of 1982 (Commissioner of Income-tax, Bhopal v. Princess Usha Trust, Indore), as a common question has been raised in all the three applications filed by the Commissioner of Income-tax, Bhopal, against the assessee, Princess Usha Trust, Indore, under Section 256(2) of the I.T. Act, 1961.

(2.) ASSESSMENT years involved in all the three cases are 1974-75, 1975-76 and 1976-77. Assessee is a trust and is assessed as an AOP. For the previous years relevant to the assessment years in question, the ITO included as income the annual letting value (ALV) of Manik Bagh Palace in the hands of the assessee-trust. In appeal, the AAC directed the ITO to exclude the ALV of the said palace from the total income of the assessee on the ground that under Part B States Taxation (Concessions) Order, 1950, the said palace was declared as the official residence of the Ruler of Indore State and, therefore, it was exempted from tax as per para. 15 of the said Order. The Revenue carried the matter before the Tribunal who confirmed the finding of the AAC.