#ITAT Delhi tax ruling

ITAT Delhi holds that charitable trusts not availing exemption under Section 11 of the Income Tax Act must be taxed at individual slab rates, not as Associations of Persons (AOPs) under Section 167A. The ruling clarifies that trusts without defined beneficiaries or members are not AOPs, impacting tax liability calculations for non-exempt charitable entities.

ITAT Delhi rules that assessment proceedings initiated against a merged entity post-merger are void ab initio, as the jurisdictional defect cannot be rectified under Sections 154 or 292BB of the Income Tax Act. The ruling underscores that tax authorities must verify entity existence before initiating assessments, impacting merged companies and tax practitioners.