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2017 (6) TMI 384 - AT - Income TaxExemption of income under sections 61 and 161 - revocable trust - assessee is a trust set up by the Government of Tamilnadu - Held that:- Reference to extractions from the trust deed and the contributor's agreement, it is evident that the assessee is not carrying on any business with commercial motive. The beneficiaries of the trust are identifiable and the shares are determined by contributor's agreement and the contributors are free to call upon the trust to cancel any units held by them and return the value. Therefore, the trust is revocable trust and squarely covered by section 61 of Income-tax Act. Accordingly, we hold that trust is a revocable trust and the income derived by the assessee required to be taxed in the hands of the beneficiaries in accordance with the provisions of sections 61 and 161(1) of Income-tax Act. This view is supported by the decision of the co-ordinate Bench in the case of Deputy CIT v. India Advantage Fund-VII [2014 (10) TMI 614 - ITAT BANGALORE] relied upon by the assessee. The assessee also filed evidence regarding the admission of income by the beneficiaries in page Nos. 81 to 83 from the contributors ICICI Bank, IL&FS and the HDFC. - Decided in favour of assessee.
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