M/S. GARDEN VIEW FOODS PVT. LTD.,DELHI vs. PR. CIT- 3, NEW DELHI

PDF · subscribers
ITA 3226/DEL/2017Status: DisposedITAT Delhi10 March 2025AY 2012-13Bench: SHRI M. BALAGANESH (Accountant Member), MS MADHUMITA ROY (Judicial Member)5 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that a co-ordinate bench had previously held that unregistered trusts are assessable as AOP/individuals entitled to statutory exemptions, not at the maximum marginal rate. Following this precedent, the Tribunal directed a fresh computation.

What were the facts?

The assessee, an unregistered charitable trust, was assessed at the maximum marginal rate. The assessee appealed this assessment for AY 2019-20.

What were the issues?

Whether an unregistered trust is assessable at the maximum marginal rate or entitled to statutory exemptions as an AOP/individual.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 12A,Section 11

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Satbeer Singh Godara

Hearing: 23.07.2025Pronounced: 23.07.2025

ORDER This assessee’s appeal for Assessment Year 2019-20 arises against the Addl./JCIT(A)-1, Nagpur’s DIN & order No. ITBA/APL/S/250/2024-25/1074774242(1) dated 20.03.2025, in proceedings u/s 143(1) of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

It is noticed during the course of hearing with the able assistance coming from both the parties that the assessee’s sole substantive grievance canvassed in the instant appeal seeks to reverse the learned lower authorities’ action assessing it at the maximum marginal rate despite the fact that it is not a registered trust u/s 12A of the Act entitled for section 11 exemption.

1.

Late Shri Nihal Chand Charitable Trust 4. This being the clinching factual position, the tribunal’s recent co-ordinate bench order in Shree Vishwakarma Sutradhar Sampati Trust Vs. ITO (2025) 173 taxmann.com 728 (Jodhpur-Trib.) appears to have already settled the issue in assessee’s favour and against the department that such an unregistered trust is assessable as an AOP/individual entitled for the statutory exemption(s) than to be assessed at the maximum marginal rate. I accordingly adopt the learned co- ordinate bench detailed findings mutatis mutandis to this effect and direct the learned assessing authority to frame it’s afresh computation as per law.

More judgments on Section 12A

All 6,064 judgments and leading authorities on Section 12A →

Recent GST High Court judgments

Search GST case law →