Insights
High Court read down CBDT circular on taxation of AIF trust
August 14, 2025The recent Delhi High Court decision in the case of Equity Intelligence AIF Trust wherein the Court considered the SEBI’s AIF (Alternative Investment Funds) regulations and the CBDT circular to decide whether a Category III AIF would be considered a determinate trust or an indeterminate trust.
The Court ‘read down’ the CBDT(Central Board of Direct Taxes) circular and held that a trust would be considered as a determinate trust if the beneficiaries and their shares are capable of being ascertained and having the names of beneficiaries in the original trust deed is not a prerequisite for a trust to be considered a determinate trust.