ITO Vs ARCIL SBPS 024 I Trust (ITAT Mumbai)
ITAT observed that Ld.CIT(A) has dealt with the issue in detail and gave a clear finding that assessee is a revocable trust and not an AOP. In view of the provisions of section 61, 62 and 63 of the Act, it was held that income is not taxable in the hands of the assessee but the same is taxable in the hands of the contributors.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
1. This appeal is filed by the revenue against the order of the Learned Commissioner of Income Tax (Appeals) – 33, Mumbai [hereinafter in short “Ld.CIT(A)”] dated 30.01.2020 for the A.Y.2013-14.
2. Brief facts of the case are, the Return was filed by the assessee on 30.09.2013 declaring NIL income. The case was selected for scrutiny under CASS and notice u/s. 143(2) and 142(1) of Income-tax Act, 1961 (in short “Act”) were issued and served on the assessee. In response, Ld. AR of the assessee attended and filed relevant information as called for. The assessee is a trust, created by Assets Reconstruction Company (India) Ltd. (ARCIL) namely, ARCIL-SBPS 024-I Trust for the purpose of liquidating /recovering /realizing the Non-Performing Assets (NPAs) taken over by the ARCIL-SDPS024-I. The said Trust is registered under section 3 of the SARFAESI Act, 2002 by Reserve Bank of India. The trust has the following partners /members /shareholders.
