https://www.taxtmi.com/caselaws?id=772368 The ITAT Mumbai ruled in favor of a trust on two key issues. First, regarding a Rs. 4.80 crore liability shown as deposit, the tribunal held that cessation of liability cannot be presumed merely because the creditor wrote off the advance, as the matter remains pending in arbitration with both parties asserting their claims. The liability's quantification depends on the arbitrator's award. Second, concerning notional rent for trust property given to another entity without consideration, the tribunal deleted the addition, finding that while notional income may accrue under mercantile accounting, it cannot be actually applied for trust purposes, creating an unfair tax burden without corresponding benefit. en-us Tue, 27 May 2025 00:00:00 +0530 Sat, 07 Jun 2025 08:32:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772368 The ITAT Mumbai ruled in favor of a trust on two key issues. First, regarding a Rs. 4.80 crore liability shown as deposit, the tribunal held that cessation of liability cannot be presumed merely because the creditor wrote off the advance, as the matter remains pending in arbitration with both parties asserting their claims. The liability's quantification depends on the arbitrator's award. Second, concerning notional rent for trust property given to another entity without consideration, the tribunal deleted the addition, finding that while notional income may accrue under mercantile accounting, it cannot be actually applied for trust purposes, creating an unfair tax burden without corresponding benefit. Case-Laws Income Tax Tue, 27 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772368