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“Section 164(1)”

Section References (mined)Section 164Section 164(1)48 judgments

The decision most relied on for Section 164(1) is CIT v. K. Srinivasan (83 ITR 346), cited in 129 judgments on BharatTax.

Leading authorities on Section 164(1)

CIT v. K. Srinivasan
83 ITR 346 · 1972 · Supreme Court
129
citing judgments

The term 'tax' includes surcharge and cess. Surcharge and additional surcharge are considered components of income tax, which can be levied as a basic charge, surcharge, special surcharge, and additional surcharge.

CIT v. Fr. Mullers Charitable Institutions
363 ITR 230 · 2014 · High Court
117
citing judgments

For a charitable trust, a violation of Section 13(1)(d) does not lead to the denial of exemption under Section 11 on its total income. Instead, only income derived from investments or deposits made in violation of Section 11(5) or income diverted under Section 13(1)(c) or 13(1)(d) is taxable.

1. Father Mullers Charitable Institutions 363 IT 230 (Kar.) 2. DIT(E) v. Sheth Mafatlal Gagalbhai Foundation Trust
249 ITR 533 · 2001 · High Court
108
citing judgments

Income of a trust that is taxable at the maximum marginal rate should be taxed accordingly, while other income is eligible for exemption under Section 11 of the Income-tax Act.

DIT v. Bharat Diamond Bourse
259 ITR 280 · 2003 · Supreme Court
86
citing judgments

Violation of investment mandates under Section 13(1)(d) of the Income Tax Act, 1961, for a charitable trust results in the complete denial of exemption under Section 11 of the Act.

Marck Biosciences Ltd. v. ITO
164 ITD 205 · 2017 · ITAT
65
citing judgments

Payments for strategic counselling and advisory services are not royalty if they do not involve imparting information concerning industrial, commercial, or scientific experience, but rather are for business promotion, marketing, publicity, or financial advisory services.

CWT v. Trustees of H.E.H. Nizam’s
108 ITR 555 · 1977 · Supreme Court
46
citing judgments

Where the shares of beneficiaries in a trust are determinate, trustees must be assessed separately for each beneficiary's share, treating each beneficiary as an individual. The income is then taxed at the marginal rate applicable to individuals, not at the maximum rate for an association of persons.

CIT v. Fr, Mullers Charitable Institutions
51 Taxmann.com 378 · 2014 · Supreme Court
39
citing judgments

Income earned from investments or deposits made in violation of Section 13(1)(d) of the Income Tax Act is taxable, but only to the extent of the income so earned, not the entire corpus. Circular No. 387, dated 06.07.1994, supports this interpretation and binds the revenue authorities.

CIT v. Working Women’s Forum
365 ITR 353 · 2014 · High Court
34
citing judgments

When an exemption is denied under Section 13(1)(c) or (d), the denial of exemption applies only to the portion of income that violates these provisions, not the entire income.

Judgments citing Section 164(1)

Deloitte Employees Welfare Trust, Mumbai vs. Income Tax Officer - Ward 22(1)(6), Mumbai

ITA 6691/MUM/2025[2022-23]Status: DisposedITAT Mumbai05 Jan 2026AY 2022-23

Bench: Shri Amit Shukla, Jm & Shri Arun Khodpia, Am

For Appellant: Shri Ketan Ved a/w Shri NirajFor Respondent: Assessee by
Section 143(1)Section 164Section 164(1)Section 164(1)(iv)Section 167B

employees of Deloitte Touche Tohmatsu India Private Limited (now converted to Deloitte Touche Tohmatsu India LLP) and hence, the appellant is covered under section 164(1)(iv) of the Act. 7. Learned CIT(A) ought to have appreciated the fact that without prejudice to the above, the appellant is constituted ... aforesaid demand, assessee preferred an appeal before the first appellate authority, stating that the provisions of clause (iv) of the 1st proviso to section 164 (1) would apply in the assessee’s case instead of 3 Deloitte Employees Welfare Trust provisions of section 167B of the act. However

Sri Sri Laxmi Sri Sri Narayan and Sri Sri Kali Trust, Kolkata vs. ITO, Ward 22(2), Kolkata

In the result, both the appeals filed by the assessee are allowed

ITA 733/KOL/2025[2024-25]Status: DisposedITAT Kolkata21 Oct 2025AY 2024-25

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishra

Section 143(1)Section 160Section 164Section 164(1)Section 2Section 250Section 3

provisions of section 164 of the Act and held that the assessee did not fall under any exception clause to section 164(1) of the Act which provides that I.T.A. No.: ITA 733/KOL/2025 Assessment Year: 2024-25 Sri Sri Laxmi Sri Sri Narayan and Sri Sri Kali Trust ... entity covered u/s 164 of the Act, the tax is to be determined as provided in that section. According to him, section 164(1) of the Act clearly provides for taxation at MMR, if the case is not falling under the proviso to that section, therefore, the applicability

Gauri Ananya Educational Beneficiary Trust, Kanpur vs. Deputy Commissioner of Income Tax, Circle-1(1)(1), Kanpur

In the result, the appeal is dismissed for statistical purposes

ITA 83/LKW/2023[2017-18]Status: DisposedITAT Lucknow15 Oct 2025AY 2017-18

Bench: Shri Kul Bharat & Shri Anadee Nath Misshra

Section 139Section 143(1)Section 154Section 161Section 164(1)

beneficiary trust was not engaged in the business & there was no adventure in the nature of trade. (iii) That the provisions of section 164(1) read with section 161 were not applicable to all the facts of the case as there were two beneficiaries in the trust and each having

Lipi Jain Family Trust, Ashoknagar vs. The Income Tax Officer, Exemption Ward Gwalior, Gwalior

In the result, the appeal of the assessee is allowed

ITA 227/AGR/2025[2015-16]Status: DisposedITAT Agra12 Sept 2025AY 2015-16

Bench: Shri M. Balaganesh(Through Virtual Hearing) Lipi Jain Family Trust, Vs. Ito (Exemption), Ward No. 18, Subhash Ward Gwalior Ganj Ashok Nagar, Ashok Nagar, Mp Pan: Aabtl3606J Assessee By : Shri Subhash Chand Jain, Ca Revenue By: Shri Anil Kumar, Sr. Dr Date Of Hearing 20/08/2025 Date Of Pronouncement 12/09/2025

For Appellant: Shri Subhash Chand Jain, CAFor Respondent: Shri Anil Kumar, Sr. DR
Section 139(5)Section 143(1)

claimed that it had no beneficiary who is having taxable income. In view of the fact and in view of the proviso to section 164(1) of the Act, income of the assessee is to be taxed at the normal rate. Therefore, we direct the AO to charge

Mall of Jaipur Owners Welfare Association, Jaipur vs. DCIT, Circle-6, Jaipur

In the result, appeal of the assessee is allowed

ITA 333/JPR/2025[2024-25]Status: DisposedITAT Jaipur11 Sept 2025AY 2024-25

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Rohan Mittal, AdvFor Respondent: Shri Gautam Singh Choudhary, JCIT a
Section 139(1)Section 143(1)Section 250

income Tax, Rajkot and Ors (28.04.1995 SC)- MANU/SC/0316/1995 has held that "12. We must say that the policy of law as disclosed from Section 164(1) is to discourage discretionary trusts by charging the income of such trusts in the hands of trustees at the maximum marginal rate except

Pradyumna Dalmia Beneficiary Trust, Kolkata vs. ADIT(CPC)/I.T.O., Ward - 33(2), Kolkata

In the result, both the appeals filed by the assessee are allowed

ITA 1613/KOL/2024[2021-2022]Status: DisposedITAT Kolkata11 Aug 2025AY 2021-2022

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 143(1)Section 250

power to levy surcharge @37% while processing the return of income as per Section 143(1) 4. As per Section 164(1) of the Act - "Subject to the provisions of sub-sections (2) and (3), where) any income in respect of which the persons mentioned in clauses ... Income Tax Mumbai in Para 11 & 12 held as under – … 9. So far as the taxation of income of the Trust is concerned, Section 164(1) of the Act, as reproduced above, makes it amply clear that where the share of the beneficiaries to the Trust are indeterminate, the Trust

Shailendra Gala Navneet Trust, Mumbai vs. Deputy Diretor of Income Tax Ward 22(2)(1), Mumbai

In the result, the appeal of the assessee in assessment year

ITA 4355/MUM/2024[2022-23]Status: DisposedITAT Mumbai24 Jul 2025AY 2022-23

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary ()

For Appellant: Mr. Pravin Salunkhe, Sr. DRFor Respondent: Mr. Sanjay Parikh
Section 143(1)

Private Discretionary Trust with indeterminate beneficiaries, falls within the with indeterminate beneficiaries, falls within the with indeterminate beneficiaries, falls within the purview of Section 164(1) of the Act, which mandates taxation at purview of Section 164(1) of the Act, which mandates taxation at purview of Section 164(1 ... private discretionary trust is taxable at the maximum marginal of a private discretionary trust is taxable at the maximum marginal rate as per Section 164(1), the rate as per Section 164(1), the surcharge component surcharge component of such MMR must still be computed with reference to the slab

Shailendra Gala Navneet Trust, Mumbai vs. Deputy Director of Income Tax Ward 22(2)(1), Mumbai

In the result, the appeal of the assessee in assessment year

ITA 4354/MUM/2024[2023-24]Status: DisposedITAT Mumbai24 Jul 2025AY 2023-24

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary ()

For Appellant: Mr. Pravin Salunkhe, Sr. DRFor Respondent: Mr. Sanjay Parikh
Section 143(1)

Private Discretionary Trust with indeterminate beneficiaries, falls within the with indeterminate beneficiaries, falls within the with indeterminate beneficiaries, falls within the purview of Section 164(1) of the Act, which mandates taxation at purview of Section 164(1) of the Act, which mandates taxation at purview of Section 164(1 ... private discretionary trust is taxable at the maximum marginal of a private discretionary trust is taxable at the maximum marginal rate as per Section 164(1), the rate as per Section 164(1), the surcharge component surcharge component of such MMR must still be computed with reference to the slab

Lipi Jain Family Trust, Ashoknagar vs. Income Tax Officer Exemption Ward Gwalior, Gwalior

In the result, the appeal of the assessee is allowed

ITA 78/AGR/2025[2016-17]Status: DisposedITAT Agra29 May 2025AY 2016-17

Bench: SHRI SUNIL KUMAR SINGH (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)

Section 154Section 164(1)Section 250

claimed that it had no beneficiary who is having taxable income. In view of the fact and in view of the proviso to section 164(1) of the Act, income of the assessee is to be taxed at the normal rate. Therefore, we direct the AO to charge

Nik Family Trust, Mumbai vs. Deputy Commissioner of Income Tax- Circle 23(1), Mumbai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 403/MUM/2025[2021-22]Status: DisposedITAT Mumbai08 May 2025AY 2021-22

Bench: Hon’Ble Shri Sandeep Gosainnik Family Trust Vs. Dcit, Circle – 23(1) C-7, Ishwar Niwas Sick Piramal Chamber. Nagar, Vp Raod, Girgaon. Pan/Gir No. Aadtn2244C (Applicant) (Respondent) Assessee By Shri Dharan Gandhi A/W Shri Ashutosh Patare Revenue By Shri Avinash Karpe, Sr. Dr Date Of Hearing 01.05.2025 Date Of Pronouncement 08.05.2025 आदेश / Order Per Sandeep Gosain, Jm: The Present Appeal Has Been Filed By The Assessee Challenging The Impugned Order 24.12.2024 Passed U/S 250 Of The Income Tax Act, 1961 (‘The Act’), By The National Faceless Appeal Centre, Delhi (Nfac) For The Assessment Year 2021-22. 2. The Only Effective Issue Raised In The Present Appeal Regarding Levying Of Surcharge. In This Regard It Is Submitted That Assessee Is A Discretionary Trust, Eligible To File Return In Itr-5, The Assessee Had Filed Its Return Of 2 Nik Family Trust, Mumbai

Section 143(1)Section 164Section 2Section 2(1)Section 250

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH MUMBAI BEFORE HON’BLE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER NIK Family Trust

Shakuntala Balvantrai Trust, Ahmedabad vs. The ITO, Ward-1 (Exemp), Ahmedabad

In the result, the appeal of the assessee is treated as allowed

ITA 3/AHD/2025[2023-24]Status: DisposedITAT Ahmedabad28 Apr 2025AY 2023-24

Bench: Shri Sanjay Garg (Judicial Member), Ms. Annapurna Gupta (Accountant Member)

For Appellant: Shri S.N. Divetia, A.R. &For Respondent: Shri Ashok Kumar Suthar, Sr. D.R
Section 143(1)Section 164Section 164(1)Section 167BSection 250

assessee trust falls under the exceptions as provided u/s. 164 of the Act. He has invited our attention to first proviso to section 164(1) of the Act which is reproduced as under:- “Provided that in a case where- xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx ii) the relevant income or part of relevant income ... only trust declared by him. Such trusts, it would be noticed, are referred to at item No. (ii) in the first proviso to section 164(1) of the Act. 2. This matter has been examined in the Board There was never an intention to subject the income of the aforesaid

Shakuntala Balvantrai Trust, Ahmedabad vs. The ITO, Ward-1 (Exemp), Ahmedabad

In the result, the appeal of the assessee is treated as

ITA 2/AHD/2025[2022-23]Status: DisposedITAT Ahmedabad28 Apr 2025AY 2022-23
For Appellant: Shri S.N. Divetia, A.R. &For Respondent: Shri Ashok Kumar Suthar, Sr. D.R
Section 143(1)Section 164Section 164(1)Section 167BSection 250

assessee trust falls under the exceptions as provided u/s.164 of the Act. He has invited our attention to first proviso to section 164(1) of the Act which is reproduced as under:- “Provided that in a case where- XXXXXXXXXxx XXXXXX ii) the relevant income or part of relevant income ... only trust declared by him. Such trusts, it would be noticed, are referred to at item No. (ii) in the first proviso to section 164(1) of the Act. 2. This matter has been examined in the Board There was never an intention to subject the income of the aforesaid

Shakuntala Balvantrai Trust, Ahmedabad vs. The ITO, Ward-1 (Exmp), Ahmedabad

In the result, the appeal of the assessee is treated as allowed

ITA 1/AHD/2025[2021-22]Status: DisposedITAT Ahmedabad28 Apr 2025AY 2021-22

Bench: Shri Sanjay Garg (Judicial Member), Ms. Annapurna Gupta (Accountant Member)

For Appellant: Shri S.N. Divetia, A.R. &For Respondent: Shri Ashok Kumar Suthar, Sr. D.R
Section 143(1)Section 164Section 164(1)Section 167BSection 250

assessee trust falls under the exceptions as provided u/s. 164 of the Act. He has invited our attention to first proviso to section 164(1) of the Act which is reproduced as under:- “Provided that in a case where- xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx ii) the relevant income or part of relevant income ... only trust declared by him. Such trusts, it would be noticed, are referred to at item No. (ii) in the first proviso to section 164(1) of the Act. 2. This matter has been examined in the Board There was never an intention to subject the income of the aforesaid

Nathiben Kalidas Patel Family Trust, Ahmedabad vs. The ITO, Ward-1(3)(1), Ahmedabad

In the result, the appeal filed by the assessee is allowed

ITA 190/AHD/2025[2021-22]Status: DisposedITAT Ahmedabad25 Apr 2025AY 2021-22

Bench: Smt. Annapurna Guptaआयकर अपील सं./I.T.A. No. 190/Ahd/2025 ("नधा"रण वष" / Assessment Year : 2021-22) बनाम/ Nathiben Kalidas Patel The Ito Ward 1(3)(1), Ahmedabad Family Trust Vs. 18, Mehsana Society, Nava Wadaj, Ahmedabad, Gujarat "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaatn2569D (Appellant) .. (Respondent) अपीलाथ" ओर से /Appellant By : Shri S. N. Divatia & Shri Samir Vora, Ars. ""यथ" क" ओर से/Respondent By : Shri Nitin Kulkarni, Sr. Dr Date Of Hearing 17/04/2025 25/04/2025 Date Of Pronouncement

For Appellant: Shri S. N. Divatia & Shri Samir VoraFor Respondent: Shri Nitin Kulkarni, Sr. DR
Section 143(1)Section 143(1)(b)Section 160Section 161Section 164Section 250

declared by him. Ld. Counsel for the assessee, therefore, contended that in terms of the Proviso to Section 164(1) of the Act, trusts which are created by WILL is not to be subject to tax at the MMR but at the rates which are specified for association of persons ... only trust declared by him. Such trusts, it would be noticed, are referred to at item No. (ii) in the first proviso to section 164(1) of the Act. 2. This matter has been examined in the Board. There was never an intention to subject the income of the aforesaid

Swati Sarawagi Family Trust, Kolkata vs. ACIT, Circle-7(1), Kolkata

In the result, both the appeals filed by the assessee are allowed

ITA 2433/KOL/2024[2023-24]Status: DisposedITAT Kolkata25 Apr 2025AY 2023-24

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 143(1)Section 164Section 164(1)Section 167BSection 234BSection 250

Since the beneficiaries are known and the shares are mentioned in the trust deed, therefore, the provisions of section 167B or section 164(1) of the Act are not applicable. The Ld. DR relies upon the order of the Ld. CIT(A). 5. We have considered the submissions made

Swati Sarawagi Family Trust, Kolkata vs. ACIT, Circle-7(1), Kolkata

In the result, both the appeals filed by the assessee are allowed

ITA 2432/KOL/2024[2022-23]Status: DisposedITAT Kolkata25 Apr 2025AY 2022-23

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 143(1)Section 164Section 164(1)Section 167BSection 234BSection 250

Since the beneficiaries are known and the shares are mentioned in the trust deed, therefore, the provisions of section 167B or section 164(1) of the Act are not applicable. The Ld. DR relies upon the order of the Ld. CIT(A). 5. We have considered the submissions made

Shree Vishwakarma Sutradhar Sampati Trust, Bikaner vs. Income Tax Officer, Exemption, Bikaner

In the result, appeal of the assessee is partly allowed in above terms

ITA 305/JODH/2024[2017-2018]Status: DisposedITAT Jodhpur28 Mar 2025AY 2017-2018

Bench: Hearing On The Case.

For Appellant: Shri Amit Kothari (CA)For Respondent: Shri Karni Dan, Addl. CIT
Section 11Section 11(1)(a)Section 12ASection 143(2)Section 250

share of beneficiaries whether known or unknown as the assessee is trust so charging the assessee as per the provisions of section 164(1) as held by the ld. CIT(A) is incorrect and the relevant facts has not been appreciated and since there is specific provision in section 164

Iei Shareholding Training and Development 1994 Trust, Mumbai vs. DCIT Circle 22(1), Mumbai

ITA 4191/MUM/2024[2022-23]Status: DisposedITAT Mumbai24 Feb 2025AY 2022-23

Bench: Smt. Kavitha Rajagopal (Jm) & Shri Omkareshwar Chidara (Am) Iei Shareholding Dcit Circle 22(1) Training & Development Piramal 1994 Trust Vs. Chambers Ion House, Dr. F. Moses Lalbaug, Parel Road, Mahalaxmi Mumbai-400 Mumbai-400 011. 012. Pan : Aaaai0912N Appellant Respondent

For Appellant: Shri Kiran UnavekarFor Respondent: Shri Motichand Gupta
Section 143(1)Section 154Section 164(1)

appeal, the appellant filed an appeal stating that Addl./JCIT(A) erred in not computing the tax liability of the appellant by applying section 164(1) of the I.T. Act read with proviso (iv) at the slab rate. 2. At the time of hearing before the bench

Iei Shareholding (Cultural Activities 1987) Trust, Mumbai vs. Income Tax Officer, Mumbai

In the result, appeal filed by the assessee bearing ITA No

ITA 5722/MUM/2024[2022-23]Status: DisposedITAT Mumbai03 Feb 2025AY 2022-23

Bench: Shri Anikesh Banerjee & Shri Prabhash Shankariei Shareholding (Cultural Vs Ito, Ward 22(2)(1), Mumbai Activities 1987) Trust, Piramal Chambers, Lalbaug, Mumbaiion House, 4Thfloor, Mumbai. Dr. E. Moses Road, Mahalaxmi, Mumbai-400 011. Pan : Aaat10078E Appellant Respondent

For Appellant: ShriMotichand GuptaFor Respondent: Shri KiranUnavekar, SR. DR
Section 143(1)Section 154Section 164(1)Section 167Section 250

First Appellate Authority has erred in facts as well in law, in not computing the tax liability of the Appellant under section 164(1) of the Act read with proviso (iv), at the slab rates 5. That on the facts and in the circumstances of the case, the Ld. AddI/JCIT

Aastitva Jain Family Trust, Ashoknagar vs. The Income Tax Officer CPC Bengaluru, Bengaluru

In the result, appeal of the assessee is allowed for statistical

ITA 88/AGR/2024[2015-16]Status: DisposedITAT Agra17 Jan 2025AY 2015-16

Bench: : Shri Ramit Kocharassessment Year: 2015-16

Section 139(4)Section 143(1)Section 164(1)Section 234Section 249(2)

vide acknowledgement no.626547700180217 declaring his total income Rs 241000/- without any tax liability being income below taxable limit by virtue of Section 164(1) of the Income Tax Act but order u/s143(1) was passed on 19/10/2017 with demand of Rs 112190/- after calculating tax on maximum marginal rate instead ... reproducing analysis of Sec 164(1) provided for Taxation of Private Discretionary Trusts: (a) When trust income includes any business income Proviso to section 164(1)In this case trust will pay tax at the rate 30percent plus SC plus HEC(b) When trust income does not include any business