Income of beneficiaries cannot be treated as income in hands of trust: ITAT Ahmedabad

Aquagel Promoter Group Shareholders Trust Vs DCIT (ITAT Ahmedabad) ITAT Ahmedabad held that the income of beneficiaries of trust cannot be treated as income in the hands of the trust. Accordingly, disallowance under section 143(1) of the Income Tax Act not justified. Facts- The assessee is an Association of Person (Trust) which came into existence vide Trust Deed dated 24.12 2012. The Trust is comprising of 38 members who are having definite shares as beneficiaries in the assessee-trust and was created for the specific purpose namely to transfer the shares of M/s. Aquagel Chemicals Pvt. Ltd. t...