Service, if any rendered, by an Investment Trust is for its own self
Previously, in ICICI Econet Internet and Technology Fund and Others vs. Commissioner of Central Tax, Bangalore North1 case, the Bangalore Customs Excise and Service Tax Appellant Tribunal (“CESTAT”) in the context of the relationship of a trust with its investors had held that trust registered under the Regulations is a juridical person for the purposes of SEBI Regulations and should be treated as the same for tax purposes too. The CESTAT had observed that Trusts by concerning themselves in commercial activities and by using the discretionary powers to benefit a certain class of investors or nominees or employees or subsidiaries, have violated the principles of mutuality and therefore cannot be treated as trusts for the purposes of taxation statutes.
