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TMI Blog2024 (11) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... tal income, exceeding Rs. 50 lacs of such income tax - HELD THAT:- Only when the total income exceeds Rs. 50 lacs then surcharge is leviable, where the rate of surcharge is fixed according to the slab of income. During the year under consideration, the income of the appellate was assessed by the ld. A.O./CPC at Rs. 6,73,590/- which is less than Rs. 50 lacs and, therefore, levying of surcharge would not be applicable for the same. We, therefore, direct the ld. A.O. to delete the surcharge levied in the hands of the assessee Trust. Ground no. 2 raised by the assessee is hereby allowed. - Ms. Kavitha Rajagopal, JM And Shri Ratnesh Nandan Sahay, AM For the Assessee : Shri Sanjay Parikh For the Respondent : Shri R. R. Makwana ORDER PER KAVITHA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same may please be deleted. 4. The brief facts are that the assessee company is an irrecoverable private Discretionary Trust incorporated in 2012 under the Indian Trust Act, 1882. The assessee Trust had filed its return of income dated 16.07.2022, declaring total income at Rs. 6,73,590/- and the same was processed u/s. 143(1) of the Act. 5. The learned Assessing Officer (ld. A.O. for short)/CPC issued intimation u/s. 143(1) of the Act dated 16.03.2023, levying a surcharge of Rs. 74,768/- @ 37%, as against Nil computed by the assessee and thereby issuing a refund of Rs. 1,80,670/- as against the refund claimed of Rs. 2,48,010/-. 6. The assessee was in appeal before the first appellate authority, challenging the said intimation of the ld. A.O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome is less than Rs. 50 lacs. The ld. CIT(A) has contended that since the assessee s tax liability would fall under the maximum marginal rate, surcharge would be applicable in the case of assessee as per section 2(29) of the Act. The assessee s contention that as per the Finance Bill, 2022 surcharge could be applicable only when the assessee in case of Individual, Hindu Undivided Family or Association of Person or Body of individuals having a total income, exceeding Rs. 50 lacs of such income tax. The relevant extract of the same is cited herein under: Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A or th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividend or income under the provisions of section 111A and section 112A) exceeding two crore rupees but is not covered under clauses (c) and (d), shall be applicable at the rate of fifteen per cent. of such income-tax: Provided that in case where the total income includes any income by way of dividend or income chargeable under section 111A and section 112A of the Income-tax Act, the rate of surcharge on the amount of income-tax computed in respect of that part of income shall not exceed fifteen per cent.: Provided further that in the case of persons mentioned above having total income exceeding, (a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee Trust. Ground no. 2 raised by the assessee is hereby allowed. 13. The findings applied in ITA No. 2485/Mum/2024 will apply mutatis mutandis to Ground no. 2 of ITA No. 2484/Mum/2024 and 2486/Mum/2024. 14. Ground no.3 raised by the assessee in ITA No. 2484/Mum/2024 and ground no. 4 in ITA No. 2486/Mum/2024 pertains to the levy of additional interest u/s. 234B and 234C of the Act. The ld. A.O. is directed to recompute the interest u/s. 234B and 234C of the Act consequentially as per the relief granted in ground no. 2. 15. Ground no. 3 of ITA No. 2486/Mum/2024 relates to the mismatch in tax payable and the net amount payable where the demand resulted in increase by Rs. 23,195/-. As this ground requires factual verification, we remand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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