Sarath Babu, CHENNAI v. ITO (OSD), CHENNAI

ITA 711/CHNY/2011 | 2002-2003
Pronouncement Date: 29-11-2011

Appeal Details

RSA Number 71121714 RSA 2011
Assessee PAN AADTS9203Q
Bench Chennai
Appeal Number ITA 711/CHNY/2011
Duration Of Justice 7 month(s) 13 day(s)
Appellant Sarath Babu, CHENNAI
Respondent ITO (OSD), CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 29-11-2011
Appeal Filed By Assessee
Bench Allotted A
Date Of Final Hearing 29-11-2011
Next Hearing Date 29-11-2011
Assessment Year 2002-2003
Appeal Filed On 15-04-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI BEFORE SHRI N S. SAINI ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN JUDICIAL MEMBER I.T.A. NO. 708 709 710 711 712 & 713/MDS/2011 ASSESSMENT YEARS : 1999-2000 2000-01 2001-02 2002-03 2003-04 & 2004- 05 SHRI SARATH BABU RANGA COMPLEX 7 PONDY BAZAAR T. NAGAR CHENNAI-600 017. V. THE INCOME-TAX OFFICER (OSD) (EXEMPTIONS)-II CHENNAI. [PAN: AADTS9203Q] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N. V. BALAJI ADVOCATE RESPONDENT BY : SHRI SHAJI P. JACOB SR. DR DATE OF HEARING : 29-11-2011 DATE OF PRONOUNCEMENT : 29-11-2011 O R D E R (IN THE OPEN COURT) PER BENCH: THESE ARE APPEALS FILED BY THE ASSESSEE SHRI SARA TH BABU FOR THE ASSESSMENT YEAR 1999-2000 TO 2004-05 IN THE CASE OF M/S. SATH RASALA VENKATRAM TRUST. 2. THE FACTS THAT EMANATE FROM THE PRESENT APPEALS ARE THAT ONE SHRI SATHRASALA VENKATRAM EXPIRED ON 05-12-1997. IT IS MENTIONED THAT HE HAD LEFT A WILL WHICH WAS PROBATED ON 12-04-2005. IT WAS THE FURTHER SUBMISSION THAT DURING THE LIFE TIME OF SHRI SATHRASALA VENKATRAM TAKING ADVANTAGE OF HIS OLD AGE AND I.T.A. NOS. 708-713/MDS/2011 2 INFIRMITY HIS SERVANT MAID ONE MS. SELVI ALONG WITH FEW OTHERS HAD FORCED HIM TO EXECUTE SOME DOCUMENTS RELATING TO HIS PROPERTIES I NCLUDING ONE PURPORTING TO BE A TRUST NAMED SATHRASALA VENKATRAM TRUST. THE SAID S ATHRASALA VENKATRAM TRUST HAS FILED ITS RETURN OF INCOME BEFORE THE ASSESSING OFFICER FOR THE RELEVANT ASSESSMENT YEARS. THE TRUST HAD ALSO APPLIED FOR R EGISTRATION U/S 12AA OF THE INCOME TAX ACT 1961 ON 18-02-2005. THIS CLAIM OF THE REGISTRATION CAME TO BE REJECTED BY DIT (EXEMPTIONS) VIDE ORDER DATED 31-08- 2005. CONSEQUENT UPON THE REJECTION OF THE REGISTRATION U/S 12AA THE ASSESSM ENT CAME TO BE COMPLETED IN THE HANDS OF THE SATHRASALA VENKATRAM IN THE STATUS OF AOP. THE ASSESSEE SHRI SATHRASALA SARATH BABU HAD APPEARED BEFORE THE ASSE SSING OFFICER IN THE COURSE OF RE-ASSESSMENT PROCEEDINGS AND HAD FILED A LETTER DA TED 10-11-2006 SPECIFICALLY ALLEGING THAT HE SHOULD NOT BE CONSIDERED A MEMBER OF THE AOP. IT WAS ALSO ALLEGED THAT THE TRUST WAS A FRAUD. SHRI SATHRASAL A SARATH BABU HAD FILED AN APPEAL BEFORE THE LEARNED CIT(A) AGAINST THE ASSESSMENT IN THE NAME OF THE TRUST IN THE STATUS OF THE EXECUTOR. WE MAY SPECIFICALLY MENTION HERE THAT THE STATUS MENTIONED IN THE FORM NO. 35 FILED BEFORE THE LEARNED CIT(A) BY SHRI SATHRASALA SARATH BABU IS AN EXECUTOR AND NOT A TRUSTEE OR MANAGING TRUSTEE . BEFORE THE LEARNED CIT(A) THE ASSESSEE HAS SPECIFICALLY ARGUED THAT HE IS NOT A TRUSTEE OR A MEMBER OF M/S. SATHRASALA VENKATRAM TRUST. THE LEARNED CIT(A) UPH ELD THE ASSESSMENT ORDER IN THE CASE OF M/S. SATHARASALA VENKATRAM TRUST BUT WE NT ON FURTHER TO DIRECT THAT THE ASSESSING OFFICER SHALL VERIFY THE CLAIM OF THE ASS ESSEE THAT HE IS NOT THE MANAGING I.T.A. NOS. 708-713/MDS/2011 3 TRUSTEE OF M/S. SATHRASALA VENKATRAM TRUST AS ALSO THE CLAIM THAT HE IS NOT A MEMBER AND ONLY THEN TAKE ACTION IN REGARD TO RECOV ERY OF THE DUES. 3. A PERUSAL OF THE ORDER OF THE LEARNED CIT(A) WH EN COMPARED WITH FORM NO. 35 AND GROUNDS OF APPEAL FILED BEFORE THE LEARNED C IT(A) LEADS US TO A QUESTION AS TO WHY AND HOW THE LEARNED CIT(A) COULD HAVE DECIDE D AN ISSUE IN REGARD TO M/S. SATHRASALA VENKATRAM TRUST WHO IS NOT AN APPELLANT BEFORE THE LEARNED CIT(A). SHRI SATHRASALA SARATH BABU HAS CATEGORICALLY CLAIM ED THAT HE IS NOT A MEMBER OF M/S. SATHRASALA VENKATRAM TRUST. IF THIS IS SO WH AT IS THE LOCUS STANDI OF SHRI SATHRASALA SARATH BABU COMES INTO QUESTION IN REGAR D TO THE TRUST ASSESSMENT. HOW IS HE AGGRIEVED? WE MAY SPECIFICALLY MENTION T HAT M/S. SATHRASALA VENKATRAM TRUST HAS NOT FILED ANY APPEAL TILL DATE AGAINST TH E ASSESSMENT ORDERS DATED 11-12- 2006 PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) READ WITH SECTION 147. WE WOULD ALSO AT THIS POINT LIKE TO MENTION THAT IN THE APPEAL FILED BY SHRI SATHRASALA SARATH BABU BEFORE THE TRIBUNAL AGAINST THE ORDER OF THE LEARNED CIT(A) THE LEARNED AUTHORISED REPRESENTATIVE SHRI N. V. BA LAJI ADVOCATE HAS CATEGORICALLY PLACED BEFORE US COPIES OF ORDERS OF HON'BLE HIGH C OURT IN O.S. NO. 770 OF 1997 DATED 06-07-2006 WHEREIN IT HAS BEEN HELD THAT THE TRUST WAS BOGUS. THE LEARNED COUNSEL ALSO PLACED A COPY OF THE APPEAL FILED AGAI NST THE JUDGMENT AS ALSO A COPY OF THE ORDER OF THE HON'BLE SUPREME COURT DISMISSIN G THE S.L.P. IN CIVIL NOS. 25807 TO 25810 DATED 07-11-2008. I.T.A. NOS. 708-713/MDS/2011 4 4. THE LEARNED DR SHRI SHAJI P. JACOB PLACED BEFOR E US A COPY OF THE ORDER OF THE HON'BLE HIGH COURT IN APPEAL NO. 1213 OF 2009 I N EXECUTION PETITION NO. 511 OF 2008 DATED 25-02-2011 WHEREIN THE HON'BLE HIGH COUR T HAS CATEGORICALLY HELD THAT THE EARLIER ORDERS OBTAINED BY THE PLAINTIFF SHRI S ATHRASALA SARATH BABU FOR POSSESSION OF THE PROPERTY WAS BY MISLEADING THE CO URT AND WITHOUT JURISDICTION AND HAD NO LOCUS STANDI BY SUBSTITUTION AND IT WAS FOUND TO BE ONE AS DECR EE FOR POSSESSION IS NON EST IN THE EYES OF LAW. 5. IN THE CIRCUMSTANCES IN VIEW OF THE FOLLOWING F ACTS (I) THE ASSESSEE SPECIFICALLY CLAIMED THAT HE IS NOT A MEMBER OF AOP (II) IN VIEW OF THE FACT THAT THE ASSESSE E M/S. SATHRASALA VENKATRAM TRUST HAS NOT FILED ANY APPEAL AGAINST THE ASSESSM ENT ORDERS AND (III) SHRI S. SARATH BABU IS NOT AN AGGRI EVED PERSON IN REGARD TO THE ASSESSMENTS OF THE TRUST THE APPEALS FILED BY SHRI SATHRASALA SARATH BABU A RE FOUND TO BE NOT ADMISSIBLE AND CONSEQUENTLY ALL THE APPEALS STAND DISMISSED. 6. THE ORDER PRONOUNCED IN THE OPEN COURT SOON AFTE R THE CONCLUSION OF THE HEARING ON 29-11-2011. SD/- SD/- (N. S. SAINI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI DATED THE 29 TH NOVEMBER 2011. VM/H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE