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2022 (3) TMI 566 - AT - Income TaxAssessee is a revocable trust OR AOP - income taxable in the hands of the assessee or taxable in the hands of the contributors - as per AO assessee is an AOP and should be taxed under the term defined for “person” u/s. 2(31) of the Act - HELD THAT:- We observed that Ld.CIT(A) has dealt with the issue in detail and gave a clear finding that assessee is a revocable trust and not an AOP. In view of the provisions of section 61, 62 and 63 of the Act, it was held that income is not taxable in the hands of the assessee but the same is taxable in the hands of the contributors. We observed that the facts in the present appeal are exactly similar to the facts in the case of ITO v. M/s. Scheme A1 of ARCIL CPS 002 XI Trust [2020 (9) TMI 465 - ITAT MUMBAI], therefore we are inclined to follow the decision of the Coordinate Bench of the Tribunal wherein held assessee trust could not be considered as an indeterminate trust. In fact, we are in agreement with the view taken by the CIT(A) that as neither any discretion have been given to the trustee to decide the allocation of the income every year, nor any right is given to the beneficiary to exercise an option to receive the income or not each year, therefore, it cannot be held that the share of the beneficiaries were indeterminate. In our considered view, as the names of the beneficiaries of the assessee trust and their shares were known since inception i.e at the time of the formation of the trust as is evident from the minutes of the meeting dated 27.12.2007, therefore, it can safely be concluded that the assessee trust is a determinate trust i.e a non-discretionary trust. Accordingly, finding no infirmity in the view taken by the CIT(A) who had rightly concluded that the assessee is a determinate trust, we uphold the same - Decided against revenue.
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