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2021 (8) TMI 599 - AT - Income TaxAdditions u/s 164 r.w.s 160 - Share of the beneficiaries as taxable in the hands of the assessee trust - HELD THAT:- The assessee is a special purpose trust created for the benefit of its beneficiaries and there were 38 members who were having definite shares as beneficiaries in the trust. During the course of assessment proceedings, the assessee has submitted that the shares of the persons who are entitled to are determinate and known and the recipients are only to be subjected to tax. As submitted that the trust in fact is only escrow mechanism in the form of specific trust created for the purposes. As submitted that assessee was liable to distribute such income to its beneficiaries which was claimed as expense by the assessee. As noticed that same group of beneficiaries comprising of five members have also not claimed their share of income on account of similar dispute with the assessee trust as was in the earlier assessment year 2013-14 and 2015-16. The Co-ordinate Bench held that revenue cannot pick and choose certain amounts representing the share of the beneficiaries and tax in the hands of the assessee and simultaneously not charging the tax in the hands of the assessee with respect to majority of the beneficiaries. The facts of the case and issue involved in the present appeal are identical to the assessment year 2013-14 and 2015-16, therefore, respectfully following the decision of the Co-ordinate Bench of the ITAT [2017 (5) TMI 1411 - ITAT CHENNAI], on similar issue and identical facts, this ground of appeal of the assessee is allowed.
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