VS Trust Vs ITO (ITAT Chennai)Shares Settled in Family Trust Exempt under Section 56(2)(x); Erroneous Advance-Tax Payment Not Taxable as Income: ITAT ChennaiThe Chennai Bench of the ITAT allowed the assessee-trust’s appeal for AY 2022-23 and deleted two major additions made under section 56(2)(x). We find that, Clause 5.2 of the original trust deed as well as the substituted clause of the amended deed does not fall within the ken of the restrictions set out in Clause 8.1.2(b) of the trust deed. Hence, there is merit in the assessee’s contention that the amendment made to Clause 5.2 of the original trust deed was valid, as it was authorized by the said Clause 8.1.2(d) of the original trust deed. Rather, the assessee trust is found to be established solely for the benefit of the relatives of the settlor. The AO thus concluded that, the settlor had parted with this amount to the assessee trust and there was no liability for the trust towards the settlor.