ARCIL AST 023-I TRUST ,MUMBAI vs. INCOME TAX OFFICER 21(1)(2), MUMBAI

ITA 1257/MUM/2026Status: DisposedITAT Mumbai28 April 2026AY 2016-178 pages
AI SummaryAllowed

What were the facts?

The assessee, a trust created under SARFAESI Act for liquidating NPAs, declared Nil income. The AO treated the trust as an AOP and taxed its income, arguing it was not a revocable trust. The CIT(A) agreed with the assessee that income was taxable in the hands of SR holders.

What did the Tribunal hold?

The Tribunal held that the trust is a revocable trust and the income arising from it is not taxable in the hands of the trust but in the hands of the Security Receipt Holders. The assessee cannot be assessed as an Association of Persons.

What were the issues?

Whether the income of the securitisation trust is taxable in its hands or in the hands of the Security Receipt holders, and whether it can be assessed as an Association of Persons.

Which sections of the Income-tax Act were involved?

Section 61,Section 63,Section 164

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI

For Appellant: Ms. Yasmin
For Respondent: Shri Surendra Mohan (Sr. DR)
Hearing: 23/04/2026Pronounced: 28/04/2026

Per:Anikesh Banerjee (JM): The instant appeal of the assessee filed against the order of the Ld. Commissioner of Income Tax (Appeals)- ADDL/JCIT(A), Panchkula [for brevity the “Ld. CIT(A)”], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for Assessment Year 2016-17, date of order 21.01.2025. The impugned order emanated from the order of the Ld. Income Tax Officer Ward

2 ARCIL AST 023-I Trust 21(1)(2), Mumbai (for brevity the ‘Ld. AO’) order passed under section 143(3) of the Act date of order 26.12.2018. 2. The brief facts of the case are that the assessee is a Trust created by Asset Reconstruction Company India Ltd. (ARCIL) for the purpose of liquidating / reco

The order continues below.

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