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Facts
The assessee, Vaishali Manharlal Sheth, a 100% beneficiary of Vaishali Manharlal Sheth Trust, filed her return declaring trust income and claiming TDS of Rs. 71,025/- deducted in the trust's account. This TDS claim was disallowed by the CPC/AO via an intimation u/s 154, and the CIT(A) dismissed her appeal, even though the trust itself had not claimed the TDS benefit.
Held
The Tribunal noted that the trust had not claimed the TDS and referenced a similar case where the assessee's sister was allowed TDS credit under identical facts by another Additional/JCIT. Considering the assessee is the 100% beneficiary, the Tribunal held she is entitled to the TDS credit of Rs. 71,025/- and directed the Assessing Officer to allow the claim.
Key Issues
Whether a 100% beneficiary of a trust can claim TDS credit deducted in the trust's account when the trust has not claimed the benefit and the facts are identical to a previously allowed case.
Sections Cited
250, 154
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Income Tax Appellate Tribunal, MUMBAI BENCH “F”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRYSHRI PRABHASH SHANKAR
O R D E R
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 29.07.2025, impugned herein, passed by the Ld. Addl/Joint Commissioner of Income Tax (Appeals) (in short Ld. CIT(A)) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2024-25.
In this case, the Assessee by filling her his return of income for the A.Y. under consideration on dated 09.07.2024, declared total income of Rs. 97,17,990/- and also claimed the TDS of Rs.
The Assessee being aggrieved filed a rectification application u/s 154 of the Act and therefore the order u/s 154 of the Act was passed on 04.10.2024 but without resolving the issue against which the Assessee has preferred appeal before the Ld. Commissioner. Before the Ld. Commissioner the Assessee has claimed that the Assessee is 100% beneficiary to Vaishali Manharlal Sheth Trust and while filing its return of income for the year under consideration, the Assessee had declared trust income of Rs. 7,63,000/- in its income tax return, claiming the TDS to the tune of Rs. 71,025/- pertaining to the trust. The Assessee further claimed that Assessee’s trust and the Assessee both are different entities and the Trust by filing its return of income, has not claimed any benefit qua TDS. However, the Assessee has claimed the benefit of the same, being 100% beneficiary to such Trust.
The Ld. Commissioner though considered the aforesaid claim of the Assessee, however not being satisfied with the same, ultimately dismissed the appeal filed by the Assessee. The Assessee therefore being aggrieved is in appeal before this Court and at the Vaishali Manharlal Sheth outset demonstrated from the ITR filed by the trust i.e. Vaishali Manharlal Sheth Trust, that the said trust has not claimed any benefit of TDS amount of Rs. 71,025/- in respect of income earned by it. Further, the Assessee has drawn attention of this court to the order passed by another Additional/JCIT – Vododara in the Assessee’s sister case namely Preeti Manharlal Sheth u/s. 250 of the Act dated 14.07.2025, wherein the Ld. Additional/JCIT by considering the peculiar identical facts and form 26(AS) found the case of the then Assessee as genuine and allowed the full credit of the TDS in favour of the then Assessee by allowing appeal of the Assessee.
Thus, considering the peculiar facts and circumstance in totality, as it is not in controversy the Trust involved has not claimed benefit of TDS and another Additional/JCIT – Vododara in the Assessee’s sister case namely Preeti Manharlal Sheth u/s. 250 of the Act dated 14.07.2025, in the identical facts allowed the full credit of the TDS in favour of the then Assessee, therefore the Assessee is entitled to get the benefit of the same being 100% beneficiary of such trust. Hence, the Assessing Officer is directed to allow the TDS claimed by the Assessee to the tune of Rs. 71,025/- which was deducted in the account of the aforesaid trust, accordingly.
Order pronounced in the open court on 31.10.2025.