INCOME TAX ACT, 1961

Section 143

Assessment - Charitable trust - Status - AOP or as Individual

Assessee was a charitable trust registered under section 12A but had not claimed exemption under section 11 for several years. It was treated as AOP by AO and taxed at maximum marginal rate (MMR) in spite of the fact that the assessee had offered its income to tax considering its status as that of an individual. However, CIT(A) took the view that there was no registration under section 12AA for the impugned assessment year and the Registration Certificate relied by the assessee was applicable with effect from assessment year 2015-16. Held: In view of the decision of the High Court in DIT (Exemptions) v. Shardaben Bhagubhai Mafatlal Public Charitable Trust (2001) 247 ITR 0001 (Bom) : 2001 TaxPub(DT) 0631 (Bom-HC), the AO was directed to tax the assessee-trust by treating it as an individual, instead of AOP. Therefore, AO was not justified in taxing the assessee-trust at MMR.

Relied:DIT (Exemptions) v. Shardaben Bhagubhai Mafatlal Public Charitable Trust (2001) 247 ITR 0001 (Bom) : 2001 TaxPub(DT) 0631 (Bom-HC)

REFERRED : CIT v. Sodra Devi (1957) 032 ITR 0615 (SC) : 1957 TaxPub(DT) 0146 (SC), CIT v. Ramesh Mahesh Sanjay Trust & Ors. (1998) 231 ITR 0752 (Mad) : 1998 TaxPub(DT) 0071 (Mad-HC), CIT v. Venu Suresh Sanjay Trust (1996) 221 ITR 0649 (Mad) : 1996 TaxPub(DT) 0702 (Mad-HC), CIT v. Kothari Family Trust (1991) 188 ITR 0224 (Bom) : 1991 TaxPub(DT) 0341 (Bom-HC) and CIT v. G.B.J. Seth & C.O.J. Seth (1987) 166 ITR 0604 (MP) : 1987 TaxPub(DT) 0723 (MP-HC)

FAVOUR : In assessee's favour

A.Y. : 2012-13

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