9911796707
TMI Blog2024 (6) TMI 1406X X X X Extracts X X X X X X X X Extracts X X X X ..... THAT:- Proviso to section 2 of the Finance Act, says that in respect of any income chargeable to tax under section 115A, 115AB, 115AC, 115ACA, 115AD, 115BA, 115BB, 115BBA, 115BBC, 115BBF, 115BBG, 115BBH, 115BBI, 115E, 115JB or 115JC of the Income Tax Act, the amount of income tax computed under this sub-section shall be increased by a surcharge, for the purpose of the Union, calculated, in the case of association of persons, having a total income exceeding Rs. 50 lakh, but not exceeding Rs. 1 crore @10% of such income tax etc. It does not contemplate surcharge at any rate on the income less than Rs. 50 lakhs. In the case of ITO vs. Tayal Sales Corporation [ 2001 (2) TMI 877 - ITAT HYDERABAD ] Tribunal took the view that under section 2(29C) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal, observing that if there is no surcharge as per the Finance Act, then the same is not leviable, but if the Finance Act mandates the levy of surcharge, then the same is levied at the maximum rate, irrespect of quantum of income fixed by the Finance Act. For this purpose, learned CIT(A) referred to the commentary by Sampath Iyengar relating to the assessment year 1980-81. 4. Aggrieved by such findings of the learned CIT(A), assessee preferred these appeals, contending that even if the tax rate is chargeable at a maximum rate, the applicable surcharge rate should be applied as specified in the Finance Act depending upon the net taxable income and it is incorrect to hold that the rate of surcharge should also be levied at maximum rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be increased by a surcharge, for the purpose of the Union, calculated, in the case of association of persons, having a total income exceeding Rs. 50 lakh, but not exceeding Rs. 1 crore @10% of such income tax etc. It does not contemplate surcharge at any rate on the income less than Rs. 50 lakhs. In the case of ITO vs. Tayal Sales Corporation (supra), the Co-ordinate Bench of the Tribunal took the view that under section 2(29C) of the Act, maximum marginal rate means, the rate of income tax including surcharge on income tax, if any applicable in relation to the highest slab of in the case of an individual and it does not say that the maximum marginal rate shall include surcharge on income tax irrespective of the highest slab of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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