Income Tax tribunal grants relief to 3 Tata trusts
The Income Tax Commissioner sought a review of its earlier income tax assessments of the three Tata trusts for assessment year 2014-15
December 29, 2020 / 10:10 AM IST
The Mumbai bench of the Income Tax Appellate Tribunal, on December 28, dismissed the income tax commissioner's revision order to revise its earlier assessments against three Tata Group trusts. The earlier assessment granted tax exemption to three Tata trusts.
The Income Tax Commissioner sought a review of its earlier income tax assessments of the three trusts for assessment year 2014-15, Mint reported. The trusts - Sir Dorabji Tata Trust, Ratan Tata Trust and JRD Tata Trust - have a combined shareholding of 66 percent in Tata Sons.
ITAT set aside the tax department's 2019 revision orders, stating that they were "devoid of legally sustainable merits". The tax department can appeal against the tribunals decision in higher courts.
According to the initial assessment, the trusts had "nil" taxable income for the assessment year, the report said.
The tribunal said Cyrus Mistry, who was ousted as Tata Sons Chairman in 2016, had provided material to the tax department "within eight weeks" of his departure.
In the tax department's 2019 revision orders, it was argued that the original assessing officer had not examined certain aspects, such as the trusts' mode of investments, control over the business of Tata Sons and payment to trustees by Tata Sons, Mint reported.