No Double Tax on Beneficiary When Trust Has Paid Tax: ITAT Mumbai

Ajay Balvantray Parekh Vs DCIT (ITAT Mumbai) Summary: The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, in the case of Ajay Balvantray Parekh vs DCIT, pronounced on 28 October 2025, examined whether income distributed by a private discretionary trust, which had already paid tax on such income, could again be taxed in the hands of its beneficiary. The Tribunal held that a beneficiary cannot be taxed again on income that has already suffered tax in the hands of the trust and accordingly deleted the addition of ₹1.24 crore made by the Assessing Officer (AO). Background The assessee, Ajay ...