Receipt of immovable property requires actual possession or enjoyment; redevelopment allotments exchanged for tenancy rights fall outside deemed incom...
Section 80P deduction covers Souharda credit societies, including qualifying surplus-deposit interest, subject to member KYC verification for cash dep...
Transfer-pricing benchmarking and capital-receipt principles sustained taxpayer relief, while unsupported property-advance write-offs remained disallo...
The Income Tax Appellate Tribunal (ITAT) examined the taxability of income from a discretionary trust u/s 164(1) read with clause (ii) of Explanation 1 to Section 164 of the Income Tax Act, 1961. The key points are: Since the trustees have absolute discretion to apply the trust's income and corpus, and the beneficiaries' shares are not determined, the trust is considered a discretionary trust. The income is taxable at the maximum marginal rate as if it were the total income of an association of persons (AOP). However, the beneficiaries, being individuals, cannot be denied deductions u/ss 80C and 80TTA due to the deeming fiction of AOP. The Assessing Officer must consider allowing credit for TDS and deduction u/s 80C after verification. The ITAT emphasized that the correct income must be taxed strictly per the Act, regardless of any deficiencies in the prescribed ITR forms. The assessee's appeal was partly allowed.
The Income Tax Appellate Tribunal (ITAT) examined the taxability of income from a discretionary trust u/s 164(1) read with clause (ii) of Explanation 1 to Section 164 of the Income Tax Act, 1961. The key points are: Since the trustees have absolute discretion to apply the trust's income and corpus, and the beneficiaries' shares are not determined, the trust is considered a discretionary trust. The income is taxable at the maximum marginal rate as if it were the total income of an association of persons (AOP). However, the beneficiaries, being individuals, cannot be denied deductions u/ss 80C and 80TTA due to the deeming fiction of AOP. The Assessing Officer must consider allowing credit for TDS and deduction u/s 80C after verification. The ITAT emphasized that the correct income must be taxed strictly per the Act, regardless of any deficiencies in the prescribed ITR forms. The assessee's appeal was partly allowed.
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