ARCIL RETAIL LOAN PORTFOLIO 004 B TRUST,MUMBAI vs. ITO 21(1)(2), MUMBAI

ITA 256/MUM/2024Status: DisposedITAT Mumbai28 May 202413 pages
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What did the Tribunal hold?

The Tribunal held that the trust is a valid revocable trust and the income is taxable in the hands of the beneficiaries as per Sections 61 to 63 of the Income Tax Act. It was also held that the assessee cannot be treated as an AOP.

What were the facts?

The assessee, a trust involved in asset reconstruction and securitization, filed its return declaring Nil income. The Assessing Officer (AO) treated the trust as an Association of Persons (AOP) and taxed its income in its hands. The Commissioner of Income-tax (Appeals) upheld the AO's action.

What were the issues?

Whether the trust is a valid revocable trust and if its income is taxable in the hands of the trust or its beneficiaries, and whether the assessee can be treated as an AOP.

Which sections of the Income-tax Act were involved?

Section 61,Section 62,Section 63,Section 143(3),Section 250

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Income Tax Appellate Tribunal, A BENCH, MUMBAI

Before: SHRI NARENDRA KUMAR BILLAIYA & SHRI SANDEEP SINGH KARHAIL

For Appellant: Shri Jeet Kamdar Shri Radhakant Saraf
For Respondent: Shri Ajay Chandra

PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee challenging the impugned order dated 26/12/2023, passed u/s 250 of the Income Tax Act, 1961 ("the Act") by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, ["learned CIT(A)"], for the assessment year 2016-17. 2. In this appeal, the assessee has raised the following grounds:

“1. The Assessing Officer erred in assessing the Total Income in the hands of the Appellant Trust, It is the contention of the Appellant Trust that the income is not chargeable in the hands of the Appellant Trust but in the hand

The order continues below.

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