The Tax Publishers2019 TaxPub(DT) 7506 (SC) : (2020) 269 TAXMAN 0005

INCOME TAX ACT, 1961

Section 261 Section 52(2) Section 61

Where the department preferred SLP to appeal against the judgment of Madras High Court in CIT v. Tamilnadu Urban Development Fund [Tax Case Appeal Nos. 122 & 123 of 2019 & CMP No. 3227 of 2019, dt. 11-2-2019] : 2019 TaxPub(DT) 2961 (Mad-HC), whereby the High Court held that Tribunal was perfectly justified in invoking section 62(2) of the Act read with section 61(1) which would apply only to the revocable transfer of the funds made for a period which was not specified, thus, it would be taxable in the hands of the transferor/beneficiaries and not in the hands of the trust, the Supreme Court dismissed the SLP.

Appeal (Supreme Court) - Special leave petition - Liability in special cases - Assessment of trust

Department preferred SLP to appeal against the judgment of Madras High Court in CIT v. Tamilnadu Urban Development Fund [Tax Case Appeal Nos. 122 & 123 of 2019 & CMP No. 3227 of 2019, dt. 11-2-2019] : 2019 TaxPub(DT) 2961 (Mad-HC), whereby the High Court held that Tribunal was perfectly justified in invoking section 62(2) of the Act read with section 61(1) which would apply only to the revocable transfer of the funds made for a period which was not specified, thus, it would be taxable in the hands of the transferor/beneficiaries and not in the hands of the trust.Held: The Supreme Court dismissed the SLP.

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