Aradhya Jain Trust Versus ITO, Mumbai

Parties Involved

Facts Summary

The assessee, Aradhya Jain Trust, filed an appeal against the appellate order passed by the Joint Commissioner of Income Tax, Panchkula for AY 2022-23 dated 18.03.2024. The assessee filed its return of income for A.Y. 2022-23 at a total income of ₹55,75,700/-. The assessee computed surcharge on the tax payable at 10% as per the return of income filed. However, the Central Processing Centre computed surcharge at 37% on the tax payable. The assessee argued that the applicable rate of surcharge should be 10% as per the income slab of the assessee. The assessee challenged the intimation before the learned CIT(A) but the contention was rejected. The assessee then filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the maximum marginal rate should include the highest rate of surcharge applicable in case of an individual?
• 2. Whether the CPC has power to vary the rate of surcharge by processing the return of income u/s. 143(1) of the Act?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Rajiv Pasari Family Beneficiary Trust Vs ITO, Ward-1(1), Kolkata

  Kolkata benchAY 2024-2025Allowed

• Vihar Trust vs DCIT

• Deloitte Employees Welfare Trust Vs. ITO, Ward-22(1)(6)

  SMC BENCH, MUMBAI benchAY 2022-23Allowed

• Sri Sri Laxmi Sri Sri Narayan and Sri Sri Kali Trust Vs. DCIT, CPC [ITO, Ward-22(2), Kolkata]

  Kolkata 'SMC' Bench benchAY 2024-25Partly Allowed

• Pawai Trust vs. DCIT

  Delhi Benches ‘E’ benchAY 2021-22Allowed

• HMIL Shareholding (Training and Development-1994) Trust vs ITO

  Mumbai bench