Trust Income Taxed in Beneficiaries’ Hands Cannot Be Assessed U/S 166: ITAT Mumbai

Punit Deora Trust Vs Income Tax Department (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) in Mumbai addressed an appeal filed by Punit Deora Trust, contesting an order from the Additional/Joint Commissioner of Income Tax (Appeals). The dispute centered on the assessment of rental income received by the trust from its property. The trust, established for the benefit of five beneficiaries, had declared “Nil” income in its return for the assessment year 2018-19, distributing the rental income among the beneficiaries, who then included it in their individual income tax returns....