Relief to Tata Trusts: Appellate body quashes I-T dept order, upholds tax-exempt status
The Income Tax Appellate Tribunal (ITAT) passed three orders observing that the I-T department s revision orders in the three trusts are devoid of any legally sustainable merits.
BusinessToday.In | December 29, 2020 | Updated 13:59 IST
The orders would have led to three Tata Trusts having to pay up taxes running into several lakhs
The Income Tax Appellate Tribunal (ITAT) on Monday, December 28 reversed the March 2019 revisionary orders of the Commissioner of Income Tax (I-T)- Exemptions (CIT) that sought to annul tax exemptions given to three Tata group trusts - JRD Tata Trust, Dorabji Tata Trust, and Ratan Tata Trust. The edicts would have led to three Tata Trusts having to pay up taxes running into several lakhs.
Ratan Tata. File
| Photo Credit: SHASHI ASHIWAL
It also censured former Tata Sons Chairman Cyrus Mistry for supplying documents to the Tax Department soon after his unceremonious exit.
The Income Tax Appellate Tribunal (ITAT) has upheld the tax-exempt status of three Tata Group trusts, quashing a revision order of the Income Tax Department that sought to cancel tax exemption on grounds that they held shares of Tata Sons.
It also censured former Tata Sons Chairman Cyrus Mistry for supplying documents to the Tax Department soon after his unceremonious exit as the head of the salt-to-software group.
The ITAT’s Mumbai Bench comprising its President Justice P P Bhatt and Vice President Pramod Kumar passed three separate orders on December 28, upholding the tax-exempt status of Ratan Tata Trust, JRD Tata Trust and Dorabji Tata Trust.
Tax tribunal upholds tax-exempt status of Tata Trusts; censures Mistry hindustantimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from hindustantimes.com Daily Mail and Mail on Sunday newspapers.
ITAT junks tax department s revised assessment order in view of Tata Sons ownership model. Cyrus Mistry (File photo)
Key Highlights
ITAT: Conduct of handing over docs taken in fiduciary capacity unheard of in the civilized corporate world
ITAT: Tata Group trusts can t be said to be have control over affairs of Tata Sons
New Delhi: In a relief for 3 Tata Group trusts, the Income Tax Appellate Tribunal has upheld the tax exemptions given as per Section 11 of the Income Tax Act. Quashing Income Tax Department s revised assessment orders intended to cancel tax exemption, ITAT upheld the original assessment in favour of tax exemptions. A bench of ITAT chief Justice PP Bhatt and Vice-President Pramod Kumar dubbed the material given by Cyrus Mistry to revive tax assessments of Tata trusts as doubtful .