https://www.taxtmi.com/caselaws?id=770415 ITAT Ahmedabad held that a family trust created by will cannot be taxed at Maximum Marginal Rate (MMR) under First Proviso to Section 164(1). The Central Processing Centre's adjustment applying MMR was contrary to law. Family trusts are taxable at normal rates applicable to Association of Persons, not MMR, as specifically excluded by Section 164(1) First Proviso. CBDT Circular No.557 dated 04.09.1990 clarified this position, and the specific exclusion overrides general provisions of Section 167B requiring MMR taxation. en-us Fri, 25 Apr 2025 00:00:00 +0530 Fri, 20 Jun 2025 12:50:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770415 ITAT Ahmedabad held that a family trust created by will cannot be taxed at Maximum Marginal Rate (MMR) under First Proviso to Section 164(1). The Central Processing Centre's adjustment applying MMR was contrary to law. Family trusts are taxable at normal rates applicable to Association of Persons, not MMR, as specifically excluded by Section 164(1) First Proviso. CBDT Circular No.557 dated 04.09.1990 clarified this position, and the specific exclusion overrides general provisions of Section 167B requiring MMR taxation. Case-Laws Income Tax Fri, 25 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770415