The CIT(A) has rightly directed the AO to consider the provision of Section 164(2) which lays down that where relevant income or part of the income is not exempt u/s. 11 due to violation of Section 13(1)(c) or 13(1)(d) of the Act, then in that eventuality tax shall be charged on the relevant income or part of the relevant income at maximum marginal rate and not that entire income of the trust would be charged to tax at maximum marginal rate. Department’s appeal is dismissed. (AY. 2013-14, 2014-15, 2015-16)
DCIT v. Central Academy Jodhpur Education Society (2020) 208 TTJ 545 (Jaipur)(Trib.)
S. 164 : Representative assessees-Charge of tax-Beneficiaries unknown-Only the relevant part of income of the trust to be charged at maximum rate-Appeal dismissed. [S. 11, 12, 13(1)(c)]