Gujarat High Court
Commissioner Of Income Tax vs Sona Family Trust on 27 January, 2025
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
NEUTRAL CITATION
C/ITR/52/1992 ORDER DATED: 27/01/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/INCOME TAX REFERENCE NO. 52 of 1992
With
R/INCOME TAX REFERENCE NO. 91 of 1992
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COMMISSIONER OF INCOME TAX
Versus
SONA FAMILY TRUST
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Appearance:
KARAN G SANGHANI(7945) for the Applicant(s) No. 1
MR MANISH J SHAH(1320) for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
and
HONOURABLE MR.JUSTICE D.N.RAY
Date : 27/01/2025
COMMON ORAL ORDER
(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)
1. These references are arising out of the judgment and order
passed by the Income Tax Appellate Tribunal, Ahmedabad, Bench B
in I.T.A No.1987/Ahd/1987 for Assessment Year 1983-84 and ITA
No.623/ASD/1988 for the Assessment Year 1984-85 respectively.
2. The Tribunal has drawn the statement of case in R.A.No.
451/1401/ASD/1990 for the Assessment Year 1983-94 and R.A.No.
452/ASD/1991 for the Assessment Year 1984-85 under Section
256(2) of the Income Tax Act,1961 and referred the following
question as said to be a question of law and said to arise out of the
order of the Tribunal for the opinion of this Court:-
NEUTRAL CITATION
C/ITR/52/1992 ORDER DATED: 27/01/2025
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"Whether, on the facts and in the circumstances of the
case, the Tribunal was right in law in holding that the
business carried on by S/Shri Tilakraj, Rajkumar and
Ajablal in the name of M/s.Saroj Synthetics was a Trust
Property, and section 161 of the I.T.Act was applicable
to it ?"
3. In both the appeals, the Tribunal followed its decision in I.T.A
No.2687/ASD/1984 for the Assessment Year 1981-82.
4. The Tribunal has drawn the statement of case in R.A.No.879/
AHD/1986 arising for the Assessment Year 1981-82.
5. The statement of the case forwarded by the Tribunal in
Reference Application No.RA No. 879/AHD/1986 was registered
as Income Tax Reference No.107 of 1987.
6. As the Tribunal followed its decision in earlier year, this
Court passed an order dated 17.10.2021 to list these References after
the decision in Income Tax Reference No. 107 of 1987.
7. So far as the above question of law was concerned, there was
difference of opinion between the Members of the Division Bench
NEUTRAL CITATION
C/ITR/52/1992 ORDER DATED: 27/01/2025
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while disposing of the Income Tax Reference No.107 of 1987.
Therefore, the same was referred to the 3rd Judge by the order of the
Hon'ble Chief Justice.
8. The 3rd Judge passed the order dated 3rd May, 2024,
answering the question is in affirmative i.e. in favour of the
assessee and against the revenue concurring with the similar
opinion rendered by one of the members of the Division Bench.
9. In view of the above facts, the question of law is therefore
answered by relying upon the majority decision in ITR No. 107 of
1987 and following the reasons assigned by the 3rd Judge
concurring with one of the members of the Division Bench, the
question of law is answered is in affirmative i.e. in favour of the
assessee and against the revenue.
Both the references are accordingly disposed of.
(BHARGAV D. KARIA, J)
(D.N.RAY,J)
BINA SHAH
