ASSISTANT COMMISSIONER OF INCOME TAX -26(1),MUMBAI, BANDRA KURLA COMPLEX,MUMBAI vs. R D TATA TRUST, MUMBAI

ITA 3703/MUM/2023Status: DisposedITAT Mumbai21 May 2024AY 2013-14Bench: SHRI GIRISH AGRAWAL (Accountant Member), SHRI SUNIL KUMAR SINGH (Judicial Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee trust received shares of Tata Sons Ltd. as corpus donation and did not utilize its funds for acquisition. Therefore, it did not violate section 13(1)(d). Furthermore, a trustee's position as Chairman did not constitute 'substantial interest' under section 13(3), thus section 13(2)(h) was not attracted.

What were the facts?

The Revenue appealed against the CIT(A)'s order which deleted additions made by the AO. The AO had denied exemption to the assessee trust under sections 11 and 12 of the Income Tax Act by invoking sections 13(1)(d) and 13(2)(h). The denial was based on the trust holding shares of Tata Sons Ltd., which the AO considered an impermissible investment and a violation due to a trustee's substantial interest.

What were the issues?

Whether holding shares received as corpus donation violates Section 13(1)(d), and whether a trustee's chairmanship constitutes 'substantial interest' under Section 13(2)(h) read with Section 13(3).

Which sections of the Income-tax Act were involved?

Section 13(1)(d),Section 13(2)(h),Section 11(5),Section 13(3)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “D” BENCH MUMBAI

Before: SHRI GIRISH AGRAWAL & SHRI SUNIL KUMAR SINGH

Hearing: 07.05.2024Pronounced: 21.05.2024

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal filed by the Revenue is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, vide order no. ITBA/NFAC/S/250/2023-24/1055344260 (1), dated 23.08.2023 passed against the assessment order by Income Tax Officer (Exem.), Ward-2(4), Mumbai, u/s. 143(3) of the Income-tax Act(hereinafter referred to as the “Act”), dated 29.03.2016 for AY 2013-14. 2. Grounds taken by the Revenue are reproduced as under:

“1. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) was justified in holding that the assessee had not violated the provisions of section 1

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 13(1)(d)

All 306 judgments and leading authorities on Section 13(1)(d) →

Recent GST High Court judgments

Search GST case law →