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2018 (11) TMI 1244 - ITAT BANGALORERectification application u/s. 154 - claim of the assessee that the assessee is a public charitable trust and not a private trust and therefore, maximum marginal rate is not applicable in the case of the assessee - section 167B applicability - Held that:- In the present case, it is stated before us that as per clause 3(h) of the trust deed, the funds and income of the Trust shall be solely utilized for the achievement of the objects of the trust but we find that as per para no. 12 of the same trust deed, the trust shall be irrevocable but the trustees at any time in their discretion and for the better fulfillment of the objects of the trust may dissolve the trust and distribute the funds and properties of the trust to such institution or persons, as they may decide and approved by the objects of the trust. When we read both these clauses simultaneously, it comes out that during the life time of trust, the income / funds of the trust cannot be utilized by the trustees but if at any point of time, the trustees decides to dissolve the trust, the funds and properties of the trust can be distributed to any person as the trustees may decide and therefore, it cannot be said that the trust fund cannot be used by the trustees at all. Under these facts, in our considered opinion, the share of the trustees in the trust fund is not known and it is indeterminate and therefore, there is no infirmity in the orders of the lower authorities as per which, they applied provisions of section 164(1) of IT Act. Hence we decline to interfere in the order of CIT (A) on this issue. - Decided against assessee.
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