JAMBHUKUMAR SINGH KASLIWAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee has filed this application under S. 256(2) of the IT Act, 1961 (For short the 'Act'), seeking direction to the Tribunal to state the case and refer the undernoted questions, categorised as of law, after rejection of the applications under S. 256(1) of the Act, registered as RA No. 21/Ind/89 for the asst. yrs. 1981-82 to 1983-84 arising out of the common order dt. 10th Feb., 1989, passed by the Tribunal in ITA No. 106 to 108/Ind/1985 :

(2.) BRIEFLY stated, the facts of the case are that the assessee was assessed to income-tax by the ITO in the status of individual. The ITO assessed in respect of his beneficial interest in the two trusts namely, Lady Kanchanbai Trust and Sir Seth Hukumchand Trust. The beneficial interest was assessed in the hands of the assessee as individual on protective basis. Earlier, this Court had taken the view that the beneficial interest belonged to the HUF and not to the individual. The Tribunal did not follow the decision on the ground that the same was challenged in the Supreme Court (Annexure P/1). The assessee filed appeal to the AAC. The appellate authority set aside the order passed by the ITO in view of the decision of this Court (Annexure P/2). The Revenue non- applicant, then filed the appeals as particularised above before the Tribunal. The appeals were disposed of by the Tribunal on 10th Feb., 1989. Prior to this date, the Supreme Court decided the pending appeal and held that beneficial interest was assessable in the hands of individual and not HUF. This decision of the Supreme Court is reported in CIT vs. Maharaja Bahadur Singh & Ors. (1986) 57 CTR (SC) 33 : (1986) 162 ITR 343 (SC). The assessee moved the application to support the orders of the AAC and claimed relief under S. 254(2) of the Act. The prayer was rejected. The Tribunal allowed the appeals on 10th Feb., 1989. Dissatisfied the assessee filed the applications under S. 256(1) of the Act. The Tribunal declined to refer the case. There after, the assessee has filed this application under S. 256(2) of the Act.

(3.) SHRI Chaudhary has placed reliance on the common order passed by this Court on 10th Jan., 1996, in M.C.C. No. 222, 229 and 232 of 1987 [CWT vs. Maharaja Bahadur Singh Kasliwal and Anr., CWT vs. Raja Bahadur Singh Kasliwal & Ors. and CWT vs. Jamboo Kumar Singh Kasliwal respectively [reported at (1996) 134 CTR (MP) 537] on the question of subsequent declaration made by the assessee.