SARFAESI Trust Income Taxable in Hands of SR Holders as Trust Was Revocable: ITAT Mumbai

ITO Vs Arcil Retail Loan Portfolio-001-H Trust (ITAT Mumbai) In this case before the Income Tax Appellate Tribunal, the Revenue challenged the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi, for Assessment Year 2016-17. The dispute concerned the taxability of income earned by a trust created by Asset Reconstruction Company India Ltd. (ARCIL) for reconstruction and recovery of non-performing assets (NPAs) under the SARFAESI Act, 2002. The assessee trust was constituted pursuant to the SARFAESI Act and RBI guidelines. ARCIL, registered with RBI as a securitisation and reconstruct...