Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 1588 - AT - Income TaxDoctrine of diversion of income by overriding title - Tax liability on interest income of the trust - Held that:- the assessee-trust was formed vide Trust Deed settled by IL&FS Trust Co. Ltd. (ITCL) - the beneficiaries to the trust were seven Mutual Funds - The beneficial interest of those Mutual Funds in the trust was proportionate to their contribution in the assessee-trust - since assessee was a revocable trust and contribution by beneficiaries was a revocable transfer, income would be taxed in the hands of the beneficiaries i.e. Mutual Funds - also money was always intended to be passed on to PTC holders, i.e. Mutual Funds - thus principle of diversion of income at source by overriding title was attracted - interest income was not liable to tax in the hands of the assessee -Decided in favor of assessee
|