In ITAT We "Trust"

The Income Tax Appellate Tribunal (the Tribunal) "B" Bench, Bangalore has been making headlines across the country of late for its pro-assessee ruling in the decision in The Deputy Commissioner of Income Tax, Circle 9(1), Bangalore vs. M/s India Advantage Fund pronounced on October 17, 2014. The Tribunal has added much strength to Trusts under the Indian Trusts Act, 1882 doubling up as investment vehicles by ruling that the assessment of income tax vis-à-vis the pooling of funds into a revocable trust would be in the hands of the beneficiaries and not against the trustee in the capacity of a representative assessee.

The appeal before the Tribunal was with respect to the assessment of India Advantage Fund (the Trust/ Assessee Trust), setup as a trust under the provisions of the Indian Trusts Act, 1882 through the execution of a trust deed, with ICICI Venture Funds Management Company Limited (Settlor/ Investment Manager) acting as the Settlor and The Western India