Shares Settled in Family Trust Exempt under Section 56(2)(x): ITAT Chennai

VS Trust Vs ITO (ITAT Chennai) Shares Settled in Family Trust Exempt under Section 56(2)(x); Erroneous Advance-Tax Payment Not Taxable as Income: ITAT Chennai The Chennai Bench of the ITAT allowed the assessee-trust’s appeal for AY 2022-23 and deleted two major additions made under section 56(2)(x). (i) Shares contributed by settlor to trust (₹15.78 crore): The Tribunal held that shares settled by an individual settlor into a private trust were not taxable under section 56(2)(x) since the trust was created and existed solely for the benefit of the settlor’s relatives, falling squarely w...