2025 (1) TMI 1358 - SCH - Income Tax

Assessment of trust and beneficiaries interest - Determinate Trust or indeterminate Trust - Maintainability of appeal before SC on low tax effect - HC 2020 (10) TMI 1095 - MADRAS HIGH COURT we cannot accept the contention of the Revenue that the shares were non-determinable or the view taken by the Tribunal is perverse. On the contrary we do find that the view taken by the Tribunal is correct and would not call for interference so far as determinability of the shares of the beneficiaries are concerned. Once the shares of the beneficiaries are found to be determinable the income is to be taxed of that respective sharer or the beneficiaries in the hands of the beneficiary and not in the hands of the Trustees which has already been shown in the present case. HELD THAT - Petitioner on instructions states that the tax effect in this group of Petitions is below the threshold limit provided in Circular dated 17th September 2024. Hence the Special Leave Petitions are disposed of on that ground. However the question of law if any is kept open

Summary

The Supreme Court, with Justices Abhay S. Oka and Ujjal Bhuyan presiding, addressed a group of Special Leave Petitions. The Additional Solicitor General (ASG) for the petitioner acknowledged that the "tax effect" involved in these petitions falls "below the threshold limit" as stipulated in the Circular dated 17th September, 2024. Consequently, the Court disposed of the Special Leave Petitions on this basis. Importantly, the Court noted that "the question of law, if any, is kept open," indicating that any unresolved legal issues may be addressed in future proceedings. All pending applications were also disposed of.