TaxTMI 
TaxTMI 
2024 (8) TMI 499
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....aw, the order passed by the Additional / Joint Commissioner of Income-tax (Appeal), Mysore ['JCIT(A)'], is bad in law to the extent the same is prejudicial to the Appellant. 2. On the facts and in the circumstances of the case and in law, the JCIT(A), after having held that the income and the tax has to be assessed in the hands of the Appellant in its capacity as Representative Assessee, erred in directing the AO to ensure that no similar credit for prepaid taxes is availed by the beneficiaries. 3. On the facts and in the circumstances of the case and in law, the JCIT(A), erred in directing the AO to verify the claim of prepaid taxes (advance tax and tax deducted at source) in the hands of each beneficiary of the Appellant witho....
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.... funds. Accordingly, the trustee of the fund computes the taxable income of the fund and pays applicable taxes thereon in its capacity as a representative assessee of the beneficiaries of the fund. In the first quarter of FY 2014-15, trustees of the fund, paid taxes on the share of income of each beneficiary under PAN of such beneficiary and gave a declaration under Rule 37BA(2) of the Income Tax Rules, 1962 ('Rules') to investee companies to deduct TDS under the PAN of the beneficiaries. For the remaining three (3) quarters of FY 2014-15, the fund paid taxes on income of the fund in its capacity as a representative assessee using its own PAN and accordingly revoked declaration given to investee companies under Rule 37BA(2) of the Rules. Th....
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....er of the ld. CIT(A) and we find that this circular has been issued with an intention to clarify the tax position for onshore funds setup as AIF. The conditions which need to be fulfilled are:- (i). Beneficiaries of the income arising to the trust are identifiable on the date of the trust deed; and (ii) the share of income of each beneficiary is ascertainable o the date of indenture. 7.1. Facts on record show that the assessee fulfills both the conditions to be eligible for passing through taxation. Since the corresponding income has been offered by the assessee in the capacity of the representative assessee within the meaning of Section 160(1)(iv) r.w.s. 164(1) of the Act, the assessee deserves to be allowed the credit of TDS and adva....