SCHEME 2 OF ARCIL CPS 002 I TRUST ,MUMBAI vs. INCOME TAX OFFICER-21(3)(2), MUMBAI

ITA 7236/MUM/2025Status: DisposedITAT Mumbai20 April 2026AY 2016-175 pages
AI SummaryRemanded

What were the facts?

The assessee, a revocable trust, claimed expenses as pure reimbursements. The Assessing Officer disallowed a portion of these expenses under Section 40(a)(ia) for non-deduction of TDS. The CIT(A) confirmed the disallowance due to lack of evidence.

What did the Tribunal hold?

The Tribunal restored the issue to the CIT(A) for fresh adjudication. This was because the assessee had now provided evidence regarding TDS compliance and the nature of payments, which were not available to the lower authorities.

What were the issues?

Whether payments made by the trust were pure reimbursements and whether TDS provisions were complied with by the trustee, thus avoiding disallowance under Section 40(a)(ia).

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 61,Section 63

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SMT. BEENA PILLAI & SHRI JAGADISH

For Appellant: Shri Jeet Kamdar, A/R
For Respondent: Shri Suni Mathews, Sr. DR
Hearing: 09.04.2026Pronounced: 20.04.2026

Per Smt. Beena Pillai, JM: The present appeal filed by the assessee arises out of the order dated 25/08/2025 passed by the Ld. Commissioner of Income Tax, (Appeals) Addl./JCIT (A)-1, Vadodra [hereinafter the “Ld.CIT(A)”] for A.Y. 2016-17 on following grounds of appeal:-

“1. The learned Commissioner of Income-tax (Appeals) erred in confirming the action of the Assessing Officer in holding that the provisions of section 40(a)(ia) were applicable to the Appellant Trust, without appreciating the fact that the payments made by the Appellant Trust were in the nature of pure reimbursements.

2.

The learned Commissioner of Income-tax (Appeals) erred in confirming the acti

The order continues below.

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