https://www.taxtmi.com/caselaws?id=782435 ITAT held that for discretionary trusts with indeterminate beneficiary shares, s.164(1) generally mandates taxation at the maximum marginal rate unless the trust falls within statutory exceptions under s.164(3) or the proviso. In this case, the assessee had filed its return as an AOP/BOI with sub-status of Business Trust, and CPC applied the maximum marginal rate accordingly. ITAT upheld CIT(A)'s view that this CPC action was justified on the basis of the return filed. However, the issue of correct taxability and status (including possible assessment as an individual) was remanded to the AO to verify the will, trust deed, beneficiaries, and their shares and then re-determine the applicable rate. en-us Tue, 25 Nov 2025 00:00:00 +0530 Sat, 29 Nov 2025 07:57:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782435 ITAT held that for discretionary trusts with indeterminate beneficiary shares, s.164(1) generally mandates taxation at the maximum marginal rate unless the trust falls within statutory exceptions under s.164(3) or the proviso. In this case, the assessee had filed its return as an AOP/BOI with sub-status of Business Trust, and CPC applied the maximum marginal rate accordingly. ITAT upheld CIT(A)'s view that this CPC action was justified on the basis of the return filed. However, the issue of correct taxability and status (including possible assessment as an individual) was remanded to the AO to verify the will, trust deed, beneficiaries, and their shares and then re-determine the applicable rate. Case-Laws Income Tax Tue, 25 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782435