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

Parties Involved

Facts Summary

The assessee, Sri Sri Laxmi Sri Sri Narayan and Sri Sri Kali Trust, filed its return of income declaring a total income of ₹10,93,740/- for the assessment year 2024-25. The assessee paid tax at the rate of 30% along with cess, amounting to ₹3,51,195/-. However, during the processing of the return, a surcharge @ 25% was additionally charged. The assessee contended that the surcharge was not applicable as per Part-I of the 1st schedule of the Finance Act, 2023, since the income was below ₹50 Lakh. The assessee appealed against the order of the Additional Commissioner of Income Tax (Appeals) who upheld the levy of surcharge, arguing that the assessee fell under section 164 of the Income Tax Act, 1961, which mandates taxation at the maximum marginal rate (MMR). The assessee argued that the deity is the sole beneficiary and thus the normal rate of tax should apply.…

Legal Issues

• 1. Whether the assessee Trust should be charged at the maximum marginal rate (MMR) under section 164 of the Income Tax Act, 1961.
• 2. Whether the surcharge was correctly levied on the assessee’s income.
• 3. Whether the CIT(A) erred in not examining the Income Tax Return filed by the Appellant.
• 4. Whether the decision by the Ld. CIT(A) to apply the provisions of section 164 is based on conjecture.
• 5. Whether the Ld. CIT(A) wrongly upheld the erroneously levied Surcharge of Rs 82,016 on the Appellant.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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