https://www.taxtmi.com/caselaws?id=753961 ITAT Mumbai held that a trust established under SARFAESI Act with same contributors and beneficiaries constitutes a valid trust, not an AOP. The tribunal ruled that Indian Trust Act permits settlors to be beneficiaries, and mere investment by beneficiaries without control over trust activities doesn't create association for common purpose. The trust was classified as determinate and revocable since beneficiaries' shares were predetermined with no trustee discretion in income allocation. Income is taxable in beneficiaries' hands under sections 61-63, not the trust. Appeal allowed. en-us Tue, 28 May 2024 00:00:00 +0530 Fri, 14 Jun 2024 07:38:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753961 ITAT Mumbai held that a trust established under SARFAESI Act with same contributors and beneficiaries constitutes a valid trust, not an AOP. The tribunal ruled that Indian Trust Act permits settlors to be beneficiaries, and mere investment by beneficiaries without control over trust activities doesn't create association for common purpose. The trust was classified as determinate and revocable since beneficiaries' shares were predetermined with no trustee discretion in income allocation. Income is taxable in beneficiaries' hands under sections 61-63, not the trust. Appeal allowed. Case-Laws Income Tax Tue, 28 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753961