2025 (4) TMI 1620

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.... referred to as "CIT(A)"] dated 30-12-2024 arising out of the order passed u/s. 143(1) of the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Years 2021-22 to 2023-24. Since facts and issues involved in all the captioned appeals are identical, hence the same have been heard together and are being disposed of by the common order. ITA No. 1/Ahd/2025 is taken as a lead case for the purpose of narration of facts. ITA No. 1/Ahd/2025 A.Y. 2021-22 2. The assessee has taken the following grounds of appeal:- "1.1 The order u/s 250 passed on 30.12.2024 for A.Y. 2021- 22 by NFAC [CIT(A)] Add) 3CIT(A)-5 Mumbai (for short (CIT(A)) confirming the total demand of Rs 1,07,150 by applying maximum rate ....

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....he Assessing Officer applied the provisions of section 164 of the Act and held that since the income of the beneficiaries, apart from the aforesaid benefits of the trust, was undetermined, he therefore, applied the tax at the maximum marginal rate on the income of the assessee trust. The ld. CIT(A) upheld the aforesaid action of the Assessing Officer. 4. Before us, the ld. counsel for the assessee has submitted there are only three beneficiaries of the said trust created by late Sakuntalla Balvantrai. The ld. counsel of the assessee submitted that the case of the assessee trust falls under the exceptions as provided u/s. 164 of the Act. He has invited our attention to first proviso to section 164(1) of the Act which is reproduced as unde....

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....on has been made in the law in relation to any matter and where that provision is beneficial to the taxpayer, that matter is to be governed by that special provision and not by any other general provision relating to that subject. Therefore, the income of a trust declared by any person by will, where such trust is the only trust so declared by him, will continue to be charged to tax in the manner prescribed in the first proviso to section 164(1), as hitherto. 3. Similarly, other cases covered by the first proviso to section 164(1) and the first proviso to section 164(3) would also not attract the provisions of section 167B Accordingly, tax will be payable in such cases at the rate ordinarily applicable to the total income of an ass....