TaxTMI 
TaxTMI 
2025 (8) TMI 1366
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.... of Tax applicable to an AOP is the Normal Rate of Tax and not the Maximum Marginal Rate (MMR) of Tax. b) Overlooking the fact that the executors of the deceased are assessed as AOP only for statistical purpose in view of the provisions of Sec. 168(1) of the Act and not for the computation of tax liability. c) Disregarding the case laws of the MP High Court and the Mumbai ITAT. d) Disregarding the Appellate Order of the CIT(A) in the case of the Appellant for the Asst. Year 2023-24 2) Under the facts and in the circumstances of the case and in law, the Commissioner of Income tax (Appeals) erred in giving direction to the AO to verify the Income of the Appellant and Re-compute the Tax on the total Income of the Appellant as per the provisions of Sec. 168 and 167B of the Act, instead of only as per the provisions of Sec. 168(1) of the Act, thereby a) Overlooking the circumstance that the PAN in the status of AOP is allotted just for satisfying the technical requirement u/s 168(1)(b) of the Act and not for the purpose of charging the tax rate at MMR. b) Deviating from the fact that for all practical purposes, the assessment is of t....
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....essee preferred an appeal before the learned CIT(A), contending that although the return was filed in the status of an AOP, the tax rate applicable ought to be the slab rate prescribed for an individual, in accordance with the provisions of Section 168(1)(a) of the Income-tax Act, 1961 (hereinafter, "the Act"). It was submitted that the executor appointed under the will was a single individual, namely, Shri Manilal Jadavji Kenia (husband of the deceased), and therefore, the estate ought to be assessed at the rates applicable to an individual. In support of this contention, the learned counsel for the assessee has placed before us a copy of the last will of Smt. Nalini Manilal. 3. We have heard rival submission of parties and perusel relevant material on record. The core issue for consideration is the applicable rate of taxation-whether the assessee, being the executor of the estate of the deceased, is liable to be assessed at the slab rate as applicable to an individual under Section 168(1)(a) of the Act, or at the maximum marginal rate as applicable to an AOP. For ready reference, it is relevant to reproduce the provision of section 168 of the Act Executors. ^....
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....ispositions here before made by me and declare this is to be my last will and testament. I have used my judgment and discretion in making this will and bequests contained therein. I am making this will in my full conscious state being aware of all my acts and the bequests contained herein have been made by me voluntarily and of my own free will accord and desire. I am in absolute good mental state and health and I am under no pressure or influence while making this will. My thinking is clear and not clouded by hatred or anger nor is my judgment of people or situations impaired while making and signing this testament disposition. 3) I am having certain investments in shares, securities, units of mutual funds, deposits, jewelry etc, I am the absolute owner of all these where my name stands first. The Joint name/s is only for the sake of convenience. These investments/assets shall be governed by the provisions of this will. 4) Whatever nominations that I may have made in respect of any of my assets are only for the sake of convenience. The nominees shall hold the asset in trust for the persons to whom the assets are bequeathed as per this will. 5) I....
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....le property be transferred to a discretionary trust which I propose to create by this will. The trustees of the proposed discretionary trust will be as under: 1) Manilal Jadavji Kenia The trust shall be called "ESTATE OF NALINI MANILAL KENIA". The trustee shall hold and stand possessed of the rest and residue of all my property of whatsoever kind and wheresoever situate (hereinafter referred to as "Trust Fund") on terms and conditions as follows:- a) To recover the interest, dividends and any other income of the trust fund and to pay thereout the charges for collection and all other outgoings, if any at his absolute discretion. b) The Estate created by this will shall come to an end at the will of my Executor, from the date of my death. The said period is hereinafter to as "the date of distribution". c) On the date of distribution, my trustee shall transfer the corpus of the Trust Fund together with accumulation, if any, entirety to my daughter Anju Manilal Kenia. d) I hereby expressly declare and direct that the decision of my trustee even though they may be personally interested in the application of the income, shall....