Income of a revocable Trust

Assessee was a revocable Trust which was slapped certain additions under best judgment assessment under section 144. Assessee's plea before first appellate level was that the Trust was a revocable one and the Settlors had already offered the income pertaining to the property under the revocable Trust and thus the addition under best judgment was not sustainable. This went in higher appeal to ITAT -

Held in favour of the assessee that vide Section 61 and 63, in a revocable trust if the settlors or transferors have already offered the income of the revocable Trust the Trust cannot be taxed on the same. The additions were not warranted.

Ed. Note: We rarely come across revocable Trust and its taxation in real life as in this case - reference be made to Chapter V of the law that will be an interesting reading.

Case: Reporter Family Private Trust v. Assessing Officer 2024 TaxPub(DT) 1136 (Mum-Trib)