Case Law Details
Vijaya Durga Devi Trust Vs DCIT (ITAT Pune)
It is an undisputed fact that the trust has been created in the year 1968 and as per the trust deed, the entire income is to be used for the upkeep of Deity. It is also an undisputed fact that the Deity is the sole beneficiary of the Trust. It is also a fact that there is no dispute with respect to the status of the assessee and the income returned by the assessee. The only dispute is whether the tax has to be computed on the basis of tax rates applicable to an individual or the provisions of Sec. 167B would apply. The perusal of Sec. 167B of the Act reveals that the provision applies to an association or persons or body of individuals where its income is indeterminate or unknown then the tax shall be charged at the maximum marginal rate. In the present case, it is a fact that the Deity is the sole beneficiary and it is not a case where the share of its income is unknown or indeterminate. In such a situation I am of the view that provisions of Sec. 167B would not be applicable and since the Deity is a juristic person and having the status of an individual, as held by Hon’ble Apex Court in the case of Official Trustee of West Bengal (supra) the tax rates and the slabs as applicable to an individual would apply. I therefore hold so. I therefore direct that the tax slab as applicable to individual be applied to the assessee. Thus, the grounds of assessee are allowed.
FULL TEXT OF THE ITAT JUDGEMENT
1. This appeal filed by the assessee is emanating out of the order of Commissioner of Income Tax (A) – 10, Pune dated 24.01.2019 for the assessment year 2015-16.
2. The relevant facts as culled out from the material on record are as under :-
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