ARCIL RETAIL LOAN PORTFOLIO 001 J TRUST,MUMBAI vs. THE INCOME TAX OFFICER-CIRCLE 21(1)(2), MUMBAI

ITA 4199/MUM/2023Status: DisposedITAT Mumbai07 June 2024AY 2016-17Bench: Tribunal | |---------------------------|----------------------------------------------------------------------------------| | ITA No.4199/Mum/2023 | Order dated 18/07/2023 passed by learned CIT(A) for the assessment year 2016-17 | | ITA No.2909/Mum/2023 | Order dated 26/06/2023 passed by learned CIT(A) for the assessment year 2016-17 | | ITA No.3050/Mum/2023 | Order dated 05/07/2023 passed by learned CIT(A) for the assessment year 2016-17 |13 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the trusts are not AOPs but are revocable trusts. The income is liable to be assessed in the hands of the beneficiaries as their shares were known since inception, making it a determinate trust.

What were the facts?

The assessees, trusts set up by ARCIL for asset reconstruction, declared Nil income. The Assessing Officer treated them as Association of Persons (AOP) and taxed income in their hands. The CIT(A) allowed the assessee's appeal in some cases and dismissed it in others.

What were the issues?

Whether the trusts set up by ARCIL for asset reconstruction are to be treated as Association of Persons (AOP) or as determinate, revocable trusts, and in whose hands the income is taxable.

Which sections of the Income-tax Act were involved?

Section 61,Section 63

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IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.4199/Mum./2023 (Assessment Year : 2016-17) ARCIL Retail Loan Portfolio 001 J Trust ……………. Appellant The Ruby, 10th Floor, 29, Senapati Bapat Marg, Dadar, Mumbai-400028. v/s The Income Tax Officer, Circle-21(1)(2) ……………. Respondent Piramal Chambers, Lalbaug, Parel, Mumbai-400012

ITA no.2909/Mum./2023 (Assessment Year : 2016-17) ITO, Ward-22(1)(6) Room No. 108, 1st Floor, Piramal Chambers, ……………. Appellant Lal Baug, Parel, Mumbai-400012 v/s ARCIL Shalimar Wires Industries Ltd II Trust ……………. Respondent 10t Floor, The Ruby, 29 Senapati Bapat Marg, Dadar (West), Mumbai-400028

ITA no.3050/Mum./2023 (Assessment Year : 2016-17) ITO, Ward-22(1)(6) Room No. 108, 1st Floor, Piramal Chambers, ……………. Appellant Lal Baug, Parel, Mumbai-400012. v/s

ARCIL Retail Loan Portfolio 001 J Trust and Others. ARCIL, Asset Reconstruction Fund II Trust 10th Floor, The Rubby, 29 ……………. Respondent Senapati Bapat Marg Dadar (West), Mumbai-400028

Assessee by : Shri Jeet Kamdar Shri Radhakant Saraf Revenue by : Shri Ajay Chan

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