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2022 (6) TMI 1027 - AT - Income TaxAssessment of trust - Intimation of the CPC by applying the maximum marginal rate of tax on the income which was below the taxable limit - Whether CIT-A erred in directing to tax income at maximum marginal rate through the trust is registered under public charitable trust Act therefore tax should be charged at normal rate of tax - whether the rate of an individual should be applied or the maximum marginal rate of tax in the manner as provided under the provisions of section 164? - HELD THAT:- Admittedly, the person has filed the return of income in the representative capacity in the manner as provided under clause (iv) of section 160 of the Act. To this proposition, there is no dispute. It is also not under challenge that the trust on hand is a non-discretionary trust meaning thereby the beneficiaries of the trust are not known. In other words the trust being public trust was formed to carry out the charitable activities. This fact was not controverted by the learned CIT-A. Indeed learned CIT-A accepted that the assessee as public charitable trust It is the admitted position that the members of the trustees are not entitled to any share in the income of the Association of persons. Accordingly, we are of the view that the circular issued by the CBDT as discussed above is squarely applicable in the given facts and circumstances. Thus we hold that the rate applicable as to an individual for charging the income tax after allowing the basic exemption limit, shall be applicable to the assessee on hand. Hence the ground of appeal of the assessee is allowed.
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