Tax Slab Benefit Allowed Because Trust Not Liable for Maximum Marginal Rate

Vindhya Trust Vs DCIT (ITAT Delhi) The AO/CPC taxed the assessee trust at the flat 30% Maximum Marginal Rate (MMR) along with a 37% surcharge by treating it as an AOP/BOI with “unknown member shares.” The assessee contested this by asserting that it is a charitable trust whose members have no beneficial share in its income and that, although it is not claiming section 11 relief, it should nevertheless be assessed at normal AOP slab rates rather than MMR. Legal Framework Under section 167A, MMR applies only when the shares of members are indeterminate or unknown and the members are benefici...