Charitable Trust as Pass-Through Entity: ITAT Deletes Interest Disallowance Rejects 8% Profit Estimation

Dnyaneshwar Trust Vs DCIT (ITAT Pune) Charitable Trust as Pass-Through Entity: ITAT Deletes Interest Disallowance Rejects 8% Profit Estimation The Income Tax Appellate Tribunal, Pune Bench, in the case of Shri Dnyaneshwar Trust vs DCIT, held that a charitable trust functioning as a pass-through entity cannot be taxed on notional profits or denied genuine expenditure, leading to deletion of major additions across multiple years. The assessee trust, engaged in facilitating harvesting and transportation activities for labourers through a sugar factory, received supervision charges and routed bank...