JASMINA TRUST,DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, DELHI

ITA 2117/DEL/2025Status: DisposedITAT Delhi12 December 2025AY 2017-187 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that while the amendment to Section 10(34) is applicable from AY 2017-18, Section 115BBDA, which provides for special tax rates on dividend income, is applicable only to Individuals, HUFs, and Firms, not Trusts. Therefore, the dividend income remains exempt for the assessee.

What were the facts?

The assessee, a Trust, declared Nil income. The AO made additions of Rs. 25,51,286/- on account of dividend income and disallowed expenditures. The CIT(A) deleted the disallowance of expenditure but upheld the addition of dividend income, allowing a basic exemption and taxing the rest under Section 115BBDA.

What were the issues?

Whether dividend income received by a Trust is taxable when Section 115BBDA, which removes exemption for dividend income exceeding Rs. 10 lakhs, specifically applies only to Individuals, HUFs, and Firms.

Which sections of the Income-tax Act were involved?

Section 10(34),Section 115BBDA,Section 57(1),Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’: NEW DELHI

Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL

For Appellant: Shri Mahender Gohel, CA
For Respondent: Shri Manish Gupta, Sr. DR
Hearing: 16.09.2025Pronounced: 12.12.2025

PER MANISH AGARWAL, AM: This appeal is filed by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (‘the CIT(A)’ in short) dated 30.01.2025 passed u/s 250 of the Income Tax Act, 1961 (the Act, in short) in Appeal No. CIT(A), Delhi-17/10854/2019-20 against the assessment order dated 30.12.2019 passed u/s 143(3) of the Act for Assessment Year 2017-18. 2. Brief facts of the case are that assessee is a Trust having registration u/s 12A of the Act and filed its return of income declaring total income at Nil. The case of the assessee trust was selected for scrutiny wherein the AO has made the additions Jasmina Trust vs. DCIT of Rs. 25,51,

The order continues below.

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