SRI ANJANEYA SAMUDAYA BHAVAN TRUST,DAVANAGERE vs. INCOME TAX OFFICER, WARD -1, DAVANAGERE, DAVANAGERE

ITA 258/BANG/2026Status: DisposedITAT Bangalore03 June 2026AY 2024-2511 pages
AI SummaryAllowed

What were the facts?

The assessee is a charitable trust that did not claim exemption under sections 11/12. It filed its return and the CPC processed it under section 143(1), levying tax at the Maximum Marginal Rate (MMR). The assessee's rectification application and subsequent appeal to the CIT(A) were rejected.

What did the Tribunal hold?

The Tribunal held that the assessee is a public charitable trust and not a discretionary trust. Since the members/trustees are not entitled to any share of the income, section 164(1) is not attracted, and tax should be levied at normal rates.

What were the issues?

Whether the income of a public charitable trust, which does not claim exemption and is not a discretionary trust, is taxable at the Maximum Marginal Rate or at normal rates applicable to an Association of Persons.

Which sections of the Income-tax Act were involved?

Section 164,Section 143(1),Section 11,Section 12,Section 160

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘SMC’ BENCH, BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

For Appellant: Shri Ramanagowda S Gowda, Advocate
For Respondent: Shri Ganesh R Ghale, Advocate – Standing
Hearing: 01.06.2026Pronounced: 03.06.2026

PER WASEEM AHMED, ACCOUNTANT MEMBER:

The present appeal filed by the assessee pertaining to A.Y. 2024- 25 is directed against the order of the learned Commissioner of Income Tax (Appeal) ADDL/JCIT (A)-9 MUMBAI (hereafter- the learned CIT(A)) under section 250 of the Income Tax Act, 1961 (hereafter- the Act).

2.

The first issue raised by the assessee in its ground of appeal is that the learned CIT(A) erred in confirming the levy of tax at maximum marginal rate i.e. flat 30%.

3.

The facts in brief are that the assessee, Sri Anjaneya Samudaya Bhavan Trust, is a trust registered on 19.02.2019 at Davanagere, Karnataka. The primary object of the trust is to de

The order continues below.

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