Private Discretionary Trust Created by Will Not Taxable at Maximum Marginal Rate: ITAT Ahmedabad

Shakuntala Balvantray Trust Vs ITO (ITAT Ahmedabad) The ITAT Ahmedabad, in the case of Shakuntala Balvantray Trust Vs ITO, addressed the tax rate applicable to a private discretionary trust established by a will. The assessee, a trust created by late Smt. Shakuntala Balvantrai for the benefit of her daughter and grandchildren, earned only interest income, which was subsequently distributed to the beneficiaries. The Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) [CIT(A)] had applied the maximum marginal rate (MMR) under Section 164 of the Income Tax Act, 1961, arguing that ...