Taxability - services rendered by ICICI Econet Internet and ...

ICICI Econet Fund's services taxed due to commercial activities, violating mutuality principles; not recognized as a trust.

July 6, 2021

Case Laws     Service Tax     AT

Taxability - services rendered by ICICI Econet Internet and Technology Fund floated by the Settlor - The impugned trusts have violated the principles of mutuality by concerning themselves in commercial activities and by using the discretionary powers to benefit a certain class of investors or nominees or employees or subsidiaries. They can no longer be treated as trusts for the purposes of taxation statutes at least - the learned special counsel has rightly submitted that VCFs bear no comparison to members of club, which, by its very incorporation, is a grouping of individuals who have chosen to be members of a particular institution or club for fulfilment of certain human needs social, sporting, recreational etc that cannot be fulfilled except in such oragnised collectives. - the Department was in its right to invoke the extended period for the issue of SCN. - AT

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