2025 (4) TMI 1620

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....) 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 instead of normal rate under proviso to sec 164(1), though it is the only discretionary trust se....

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....rt 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 under:- "Provided that in a case where xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx ii) the relevant income or par....