ITAT Delhi Allows Section 54F Exemption to Private Trust on Capital Gains

ACIT Vs Merilina Foundation (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT) of Delhi has dismissed an appeal by the Assistant Commissioner of Income Tax (ACIT), upholding a lower court’s decision that the Merilina Foundation, a private trust with identified beneficiaries, is eligible for the capital gains exemption under Section 54F of the Income-tax Act, 1961. This ruling establishes that, for the purpose of this exemption, a private trust can be treated similarly to an individual or a Hindu Undivided Family (HUF), as long as its beneficiaries are clearly identifiable. The ITAT’...