Are voluntary contributions received by private discretionary trust taxable income? Madras High Court answers

Under dispute was the taxability of a sum of Rs 25 crores pooled into a trust meant to dole out retiral benefits to the senior officials of six companies of the same group.
Are voluntary contributions received by private discretionary trust taxable income? Madras High Court answers
Justices TS Sivagnanam and Bhavani Subbaroyan

The Madras High Court recently ruled that a private discretionary trust, being a representative assessee of identified beneficiaries, is liable to be treated as an individual for the purpose of taxation (The Commissioner of Income tax v. Shriram Ownership Trust).

Among other findings, the Court also emphasised that when the assessee does not challenge a tribunal ruling in appeal, he is not entitled to call on the High Court to frame additional questions of law by invoking Section 260A (4) of the Income Tax Act.

Subscribe now to get unlimited access

We're glad you're enjoying Bar and Bench - Indian Legal news. Login and subscribe to continue reading this story.

Already a user? Login
No stories found.
Bar and Bench - Indian Legal news
www.barandbench.com