Trusts/partnerships receiving money sans consideration from settlors, treated as taxable income under Sec 56(2)(x).

Trusts/partnerships receiving money sans consideration from settlors, treated as taxable income under Sec 56(2)(x). https://www.taxtmi.com/highlights?id=84576 The ITAT dismissed the assessee's appeal, holding that the amount received by the trust without consideration for the benefit of non-relatives, and the assessee being made a partner in firms where the settlor had substantial interest, attracts the provisions of Section 56(2)(x). The term "shares" in Explanation (d) to Section 56(2)(vii) is interpreted to include "interest in partnership firm". The AO's lack of enquiry and non-application of mind to legal issues justified revisionary action u/s 263 as the order was prejudicial to revenue interests. en-us Sat, 04 Jan 2025 08:44:24 +0530 Sat, 04 Jan 2025 08:44:24 +0530 TaxTMI RSS Generator Trusts/partnerships receiving money sans consideration from settlors, treated as taxable income under Sec 56(2)(x). https://www.taxtmi.com/highlights?id=84576 The ITAT dismissed the assessee's appeal, holding that the amount received by the trust without consideration for the benefit of non-relatives, and the assessee being made a partner in firms where the settlor had substantial interest, attracts the provisions of Section 56(2)(x). The term "shares" in Explanation (d) to Section 56(2)(vii) is interpreted to include "interest in partnership firm". The AO's lack of enquiry and non-application of mind to legal issues justified revisionary action u/s 263 as the order was prejudicial to revenue interests. Highlights Income Tax Sat, 04 Jan 2025 08:44:24 +0530 https://www.taxtmi.com/highlights?id=84576