TMI Blog2022 (6) TMI 1027X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income declaring an income of Rs. 12710/- under the head income from other sources. As per the assessee, the income was below the taxable limit as it was subject to charge of tax at the rate as applicable to an individual. However, the assessee was treated as Association of persons in the intimation generated under section 143(1) of the Act dated 13th March 2019 whereby the tax at the maximum marginal rate was applied without giving any benefit of the exemption as applicable in the case of an individual. As such, a demand of tax for Rs. 4629/- including interest was raised in the name of the assessee in the intimation under section 143(1) of the Act. 5. Aggrieved assessee preferred an appeal to the learned CIT-A. 5.1 The assessee befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of tax should be applied on the income of the trust. 8. On the contrary, the learned DR vehemently supported the order of the authorities below. 9. We have heard the rival contentions of both the parties and perused the materials available on record. In the present case, the assessee being a trust was registered under Bombay Public Trust Act 1950. However the registration under section 12A of the Act was not available. Thus, there is no ambiguity to the fact that the benefit of the exemption as provided under section 11 of the Act shall not be available to the assessee. 9.1 The controversy arises for our adjudication whether the rate of an individual should be applied or the maximum marginal rate of tax in the manner as provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot at the maximum marginal rate. 9.3 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. 9.4 In the result appeal of the assessee is allowed. Coming to ITA No. 354/Ahd/2021 an appeal by the assessee for A.Y. 2017-18 10. The assessee has raised the following ground of appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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