DCIT, KAUTILYA BHAWAN vs. JAMSETJI TATA TRUST, MUMBAI

ITA 2057/MUM/2025Status: DisposedITAT Mumbai08 August 2025AY 2015-16Bench: SHRI SAKTIJIT DEY, HON'BLE (Vice President), SHRI NARENDRA KUMAR BILLAIYA, HON'BLE (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The CIT(A) deleted the addition, ruling that the assessee's Section 12A registration was effectively cancelled from March 20, 2015, allowing it to be treated as an AOP and claim exemption for dividend income. The Tribunal upheld the CIT(A)'s decision, following previous coordinate bench judgments which affirmed that a trust can voluntarily opt out of 12A registration, and its cancellation is effective from the date of acquiescence to the show-cause notice.

What were the facts?

The assessee, Jamsetji Tata Trust, a charitable trust, filed its income tax return declaring Nil income for AYs 2015-16 and 2016-17. The Assessing Officer added Rs. 2,10,92,63,867/- as dividend income, contending that the assessee's Section 12A registration was still in force despite its voluntary surrender, thus denying exemption. The assessee argued it should be treated as an AOP and eligible for dividend income exemption.

What were the issues?

Whether a charitable trust that voluntarily surrenders its Section 12A registration can be treated as an AOP and claim exemption for dividend income under Sections 10(34)/10(35), and the effective date of such cancellation.

Which sections of the Income-tax Act were involved?

Section 10(34),Section 10(35),Section 11,Section 12,Section 13(1),Section 13(2),Section 11(7),Section 12A,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE

Hearing: 04/08/2025Pronounced: 08/08/2025

Heard together (2 matters)

I.T.A. No. 2057/Mum/2025
I.T.A. No. 2058/Mum/2025

Read from the judgment's own cause title. This page is filed under one of them.

PER NARENDRA KUMAR BILLAIYA, AM: I.T.A. No. 2057/Mum/2025 & I.T.A. No. 2058/Mum/2025 are two separate appeals by the revenue against two separate orders dated 27/01/2025 and 28/01/2025 by NFAC, Delhi pertaining to AYs 2015-16 and 2016-17. 2. Since common issues are involved, both the appeals were heard together and are disposed off by this common order for the sake of convenience and brevity.

3.

We have heard the parties on the facts of AY 2015-16. The grievance of the revenue for AY 2015-16 reads as under:-

I.T.A

The order continues below.

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