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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI INTURI RAMA RAO & SHRI VINAY BHAMORE
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER
आयकर अपील सं. / ITA No.525/PUN/2024 निर्धारण वर्ा / Assessment Year : 2021-22 Miss Snehi Siddharth Patel Vs. Income Tax Officer, Family Trust, Ward – 1(2), Sangali 23 S. Manilala And Co., Market Yard, Sangli-416416 PAN : AACTM2389L Appellant Respondent
Assessee by : Shri Pramod S. Shingte Revenue by : Shri Manoj Tripathi Date of hearing : 01.05.2024 Date of pronouncement : 02.05.2024 आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 30.01.2024 for the assessment year 2021-22.
Briefly, the facts of the case are that the appellant is a private trust. The Return of Income for the assessment year 2021-22 was filed on 01.12.2022 declaring total income of Rs.7,34,920/-. The said return of income was processed u/s. 143(1) of the Act vide intimation dated 13.10.2022 assessing the returned income at
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maximum marginal tax rate by invoking the provisions of section 161(1) of the Act. The appellant moved petition u/s. 154 seeking rectification of the said intimation. The said petition came to be rejected vide order dated 16.03.2023.
Being aggrieved an appeal was filed before the NFAC contending that while income of the trust was not utilized for the benefit of beneficiary of the trust, but was accumulated till the attainment of the age of majority of the beneficiary, the same is liable to be taxed in like manner and as done in the hands of the individual. It is further submitted that the provisions u/s. 164 of the Act were not attracted since the shares of the beneficiaries are determinate. However, the appeal was dismissed.
Being aggrieved, the appellant is in appeal before us in the present appeal.
It is submitted that for the A.Y. 2022-23, the CIT(A), NFAC had allowed the appeal of assessee and the copy of the CIT(A)/ NFAC was filed.
On the other hand, the ld. DR supports the order of CIT(A).
We heard both the parties and perused the material on record and carefully perused the trust deed. From perusal of the material
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on record, it is clearly shows that the sole beneficiary of the income of trust is the minor. The income of the trust is to be accumulated till the time of attainment of majority of the beneficiary, therefore, it cannot be said that the share of the beneficiary is indeterminate, therefore, the provisions of section 164 have no application. The CPC had fell in serious error in assessing the income at maximum marginal rate of tax. Therefore, we direct the CPC to amend the intimation issued u/s. 143(1) accordingly. Thus, the ground of appeal filed by the assessee stands allowed.
In the result, the appeal filed by the assessee stands allowed.
Order pronounced on this 2nd day of May, 2024.
Sd/- Sd/- (VINAY BHAMORE) ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ददिधंक / Dated : 2nd May, 2024. Ravi आदेश की प्रनिनलनप अग्रेनर्ि / Copy of the Order forwarded to : अपीलधर्थी / The Appellant. 1. प्रत्यर्थी / The Respondent. 2. 3. The Pr. CIT concerned. नवभधगीय प्रनिनिनर्, आयकर अपीलीय अनर्करण, “SMC” बेंच, 4. पुणे / DR, ITAT, “SMC” Bench, Pune. गधर्ा फ़धइल / Guard File. 5. आदेशधिुसधर / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अनर्करण, पुणे / ITAT, Pune.