LAJWANTI MOORJANI FAMILY TRUST,HYDERABAD vs. ITO, WARD - 1(1), HYDERABAD

ITA 1193/HYD/2026Status: DisposedITAT Hyderabad05 August 2026AY 2024-202510 pages
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What were the facts?

The assessee is a discretionary family trust created by a registered Will. The income of the trust consists of interest income. The Assessing Officer (AO) and Commissioner of Income Tax (Appeals) (CIT(A)) computed tax at the maximum marginal rate under Section 167B.

What did the Tribunal hold?

The Tribunal held that for a trust created by a Will where beneficiaries' shares are unknown, tax should be charged at the rates applicable to an AOP as per Section 164(1) read with its first proviso, not Section 167B. Specific provisions prevail over general ones.

What were the issues?

Whether tax on a discretionary trust created by a Will with unknown beneficiaries should be taxed at the maximum marginal rate (Section 167B) or at AOP rates (Section 164(1))?

Which sections of the Income-tax Act were involved?

Section 164,Section 167B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘ SMC ‘ Bench, Hyderabad

PER MANJUNATHA G., A.M : This appeal filed by the assessee is directed against the order of the learned Addl/Joint Commissioner of Income Tax (Appeals), Faridabad [in short “Ld.

Addl/JCIT”], dated 13.03.2026, pertaining to the assessment year 2024-25. 2. The brief facts of the case are that the assessee is a discret

The order continues below.

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