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

Parties Involved

Facts Summary

This is an appeal filed by the assessee, Rajiv Pasari Family Beneficiary Trust, against the order dated 23.01.2025 passed by the ld.Addl/JCIT(A), Faridabad, for the assessment year 2024-2025. The assessee is a private beneficiary trust with income below Rs.50 lakhs. The primary issue in the appeal was whether surcharge is leviable and if so, whether the slab rate or the maximum rate should be applied. The CPC had levied surcharge at the maximum rate of 25% being the slab rate. It was argued that the issue was covered by the decision in the case of Araadhya Jain Trust Vs. ITO, wherein the Special Bench held that for Private Discretionary Trusts, surcharge should be computed on the income tax having reference to the slab rates prescribed in the Finance Act.…

Legal Issues

• 1. Whether surcharge is leviable on the income of the assessee.
• 2. If surcharge is leviable, whether the slab rate or the maximum rate should be applied.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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