9911796707
TMI Blog2024 (8) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... registered as an Alternative Investment Fund (AIF) under Securities and Exchange Control board of India (Alternative Investment Funds) Regulations, 2012 and as per Section 160(1)(iv) of the Act, the assessee is a representative of the beneficiaries of the funds - CPC has not considered the advance tax paid by the trustee of the assessee trust. HELD THAT:- The assessee furnished a statement of income to each of the beneficiaries indicating share of income under each head of income and share of taxes paid by the trustee of the assessee in the representative capacity. The trustee has also paid the tax on the share of income of each beneficiary under the respective PANs of the beneficiaries and gave a declaration as required under Rule 37BA(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rievance of the assessee reads as under:- 1. On the facts and in the circumstances of the case and in law, the order passed by the Additional / Joint Commissioner of Income-tax (Appeal), Mysore ['JCIT(A)'], is bad in law to the extent the same is prejudicial to the Appellant. 2. On the facts and in the circumstances of the case and in law, the JCIT(A), after having held that the income and the tax has to be assessed in the hands of the Appellant in its capacity as Representative Assessee, erred in directing the AO to ensure that no similar credit for prepaid taxes is availed by the beneficiaries. 3. On the facts and in the circumstances of the case and in law, the JCIT(A), erred in directing the AO to verify the claim of prepaid tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 160(1)(iv) of the Act, the assessee is a representative of the beneficiaries of the funds. Accordingly, the trustee of the fund computes the taxable income of the fund and pays applicable taxes thereon in its capacity as a representative assessee of the beneficiaries of the fund. In the first quarter of FY 2014-15, trustees of the fund, paid taxes on the share of income of each beneficiary under PAN of such beneficiary and gave a declaration under Rule 37BA(2) of the Income Tax Rules, 1962 ( Rules ) to investee companies to deduct TDS under the PAN of the beneficiaries. For the remaining three (3) quarters of FY 2014-15, the fund paid taxes on income of the fund in its capacity as a representative assessee using its own PAN and acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the later quarter of the FY 2014-15. The circular is extracted at page 7 8 of the order of the ld. CIT(A) and we find that this circular has been issued with an intention to clarify the tax position for onshore funds setup as AIF. The conditions which need to be fulfilled are:- (i). Beneficiaries of the income arising to the trust are identifiable on the date of the trust deed; and (ii) the share of income of each beneficiary is ascertainable o the date of indenture. 7.1. Facts on record show that the assessee fulfills both the conditions to be eligible for passing through taxation. Since the corresponding income has been offered by the assessee in the capacity of the representative assessee within the meaning of Section 160(1)(iv) r.w.s. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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