9911796707
TMI Blog2025 (1) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... s of slab rate provided under the Finance Act. The tax rate and surcharge are applicable on the basis of slab rate provided under the Finance Act of the relevant year. The first schedule to the Finance Bill, 2022, which is applicable in the present case in hand, which provides for rate of income tax for the year on the persons including the HUF/AOP/Company/individual or association of persons, wherein slab rates for levy of tax of rate have been provided. The surcharge is leviable only when the amount of income tax is computed where the total income exceeds Rs. 50 lakhs. But in the case on hand, the return of income is only Rs. 1,27,095/-, so on this income, income tax shall be charged at maximum marginal rate in terms of section 164 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputed in the return was Rs. 40,655/- and after adjustment of TDS of Rs. 43,200/-, the appellant claimed refund of Rs. 2,545/-. The ld. Assessing Officer accepted the return of income of Rs. 1,27,100/- and the tax payable thereon at Rs. 38,130/- including the interest under section 234F, but increased the tax liability from Rs. 40,655/- to Rs. 56,171/- erroneously by including surcharge of Rs. 14,108/- and increasing the Health and Education Cess by Rs. 565/-. 3. Being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). The ld. Addl./JCIT(Appeals) after considering the written submission of the assessee, dismissed the appeal filed by the assessee. 4. Being aggrieved, the assessee preferred an appeal before the ITAT and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the surcharge is applicable on income chargeable to tax at special rates of non-residents specified fund and foreign institutional investors. He further submitted that in respect of assessment year 2022-23, the surcharge was calculated from the intimation under section 143(1) dated 16.03.2023. The assessee preferred an appeal before the ld. CIT(Appeals) and ld. Addl./JCIT(Appeals) deleted the addition made by the ld. Assessing Officer vide its order dated 16.12.2023. He further submitted that this issue was squarely covered by the decision of ITAT, Mumbai Benches and Hyderabad Benches. Section 115AD deals with tax on income of foreign institutional investors or a specified fund. The assessee does not fall either in the category of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing interest under section 234F. The reason given by the ld. Addl./JCIT(Appeals) is that the tax liability of the assessee has to be computed by maximum marginal rate and, therefore, surcharge is applicable as per section 2(29(c) of the Act. 8. For the sake of better clarity, I am reproducing the Section 2(29C), which reads as under:- :29C)- maximum marginal rate means the rate of income tax (including surcharge on income tax, if any) applicable in relation to the highest slab of income in the case of an individual, association of persons, or, as the case may be, body of individuals as specified in the Finance Act of the relevant year. Therefore, maximum marginal rate is rate of income tax, which includes surcharge if any, applicable in rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
