VS Trust vs The ITO, NCW-3(5), Chennai
Case No: ITA No.2633/Chny/2025
Court: Income Tax Appellate Tribunal ‘B’ Bench: Chennai
Date: 1/28/2026
Parties Involved
appellantVS Trust
respondentThe ITO, NCW-3(5), Chennai
Facts Summary
This is an appeal by VS Trust against the order of the Learned Commissioner of Income Tax (Appeals) for the Assessment Year 2022-23. The assessee, VS Trust, received shares worth Rs.15,78,40,401/- from its settler, Mr. Venu Srinivasan, during the relevant year. The assessee treated this receipt as non-taxable under Section 56(2)(x) of the Income Tax Act 1961. However, the Assessing Officer (AO) added this amount as income from 'other sources'. The assessee argued that the trust was created solel…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the AO erred in adding Rs.15,78,40,401/- as income from 'other sources' under Section 56(2)(x) of the Act.
- 2. Whether the AO was correct in adding Rs.12,00,00,000/- as income from 'other sources' concerning the advance tax payment.
Precedents Relied Upon
2 precedents cited in this judgement.