2026 (7) TMI 604

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.... 1961 ("the Act"). 2. The assessee has raised the following effective ground of appeal: "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in confirming the action of the Assessing Officer in charging tax at the maximum marginal rate instead of the rate applicable to an individual, without appreciating that the appellant trust was created by the Will of late Shri Jagdishprasad Bubna and was entitled to be assessed at the rate prescribed under the proviso to section 164(1) of the Act." 3. The brief facts are that the assessee is a family trust constituted under the Will of late Shri Jagdishprasad Bubna. The return of income for the year under consideration was processed under section 143(1) of ....

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....t pursuant to the said directions, the Assessing Officer passed an order dated 08.04.2026 accepting the assessee's claim and applied the rate of tax applicable to an individual. The Ld. AR also placed before us copies of the Will of late Shri Jagdishprasad Bubna and the Indenture of Declaration of Trust to demonstrate that the trust owes its origin to a testamentary disposition and that there is no change in the constitution or terms of the trust. 6. The Ld. Departmental Representative, on the other hand, supported the orders of the lower authorities and submitted that the Assessing Officer had rightly rejected the rectification application since the issue required investigation of facts and, therefore, fell outside the ambit of sect....

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....principle that although the rule of res judicata does not strictly apply to income-tax proceedings, consistency should be maintained where the fundamental facts remain unchanged. The Hon'ble Supreme Court in Radhasoami Satsang v. CIT (193 ITR 321) observed that where a fundamental aspect permeating through different assessment years has been accepted by the Revenue, the same view should ordinarily continue in subsequent years unless there is a material change in facts or law. The said principle has been reiterated by the Hon'ble Supreme Court in CIT v. Excel Industries Ltd. (358 ITR 295). 11. In the present case, the Revenue itself, after verification of the very same Will and trust documents in assessment year 2016-17, has accep....