ESTATE OF LATE NALINI ATUL BHAGWATI,MUMBAI vs. ASSISTANT DIRECTOR OF INCOME TAX, CPC, BANGLORE

ITA 2177/MUM/2024Status: DisposedITAT Mumbai16 January 2025AY 2021-2022Bench: SHRI B.R. BASKARAN (Accountant Member), SHRI RAJ KUMAR CHAUHAN (Judicial Member)5 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that Section 167B is not applicable as the beneficiaries' shares are determinate. It also held that while the status of the estate can be 'Individual' or 'AOP' based on the number of executors, the applicable tax rate should remain the normal slab rate for individuals, HUF, and AOP, not the maximum marginal rate.

What were the facts?

The assessee, estate of a deceased person with three executors, challenged the order that taxed its income at the maximum marginal rate instead of the slab rate. The CPC initially computed tax at the maximum marginal rate, which was upheld by the Ld.CIT(A) by invoking Section 167B.

What were the issues?

Whether the income of the estate of a deceased person with multiple executors should be taxed at the maximum marginal rate or the normal slab rate applicable to individuals/HUF/AOP, and if Section 167B is applicable.

Which sections of the Income-tax Act were involved?

Section 168,Section 167B

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “E” BENCH : MUMBAI

BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER Assessment Year : 2021-22 ITO, Ward-6(1)(1), Matunga (E), Aayakar Bhavan, Mumbai Mumbai. PAN : AABAE5222A (Appellant) (Respondent) Assessee by : Shri Rahul Hakani, Revenue by : Shri Hemanshu Joshi, Sr.DR Date of Hearing : 08/01/2025 Date of Pronouncement : 16/01/2025

PER B.R. BASKARAN, A.M :

The assessee has filed this appeal challenging the order dt.26-02-2024 passed by the Ld.Addl./JCIT-(A)-4, Kolkata and it relates to AY. 2021-22. The only issue urged in this appeal is whether the assessee is liable to pay income tax as per the slab rate prescribed for Individuals, HUF and AOP (Association of Persons) or at the maximum marginal rate?

2.

As per the Will created by Late Nalini Atul Bhagwati, who expired on 3rd June, 2018, three executors were appointed. The said Will was probated before Hon’ble High Court of Bombay. As per the provisions of sec.168 of the Act, the Executors are liable to pay income tax o

The order continues below.

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