Bombay HC: Private Trust Assessable as AOP, Upholds Section 40(ba) Disallowance

Mehta Jaising Combine Vs ITO (Bombay High Court) Bombay High Court confirms private trust assessable as Association of Persons, upholding disallowance of interest paid to beneficiaries under Section 40(ba). Mumbai: The Bombay High Court has ruled that a private specific trust, Mehta Jaising Combine, was correctly assessed as an ‘Association of Persons’ (AOP) by the income tax authorities for the Assessment Year 1995-96. This classification led to the disallowance of interest payments made by the trust to its beneficiaries under Section 40(ba) of the Income Tax Act, 1961. The court ...