9911796707
TMI Blog2025 (1) TMI 1540X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The solitary issue involved in this appeal is levy of surcharge @ 37% amounting to Rs. 49,169/- which according to the assessee was not leviable for the reason that as per Section 2(29C) of the Act, MMR includes surcharge and that without prejudice claims that the 'Maximum Marginal Rate' would be applicable in assessee's case for which surcharge is not to be levied when the income is below the threshold limit of Rs. 50 lacs. 3. The assessee has raised the following grounds of appeal: "1. The learned CIT (A) erred in not deleting a sum of Rs. 49,169/-made by AO/CPC in the Intimation Order u/s 143(1), arising on account of levy of 37% surcharge on the tax. 2. The CIT (A) failed to take into consideration that the Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome dated 20.07.2023, declaring total income at Rs. 4,42,960/-. The same was processed u/s. 143(1) of the Act and the Centralized Processing Centre ('CPC' for short)/learned Assessing Officer ('ld. AO' for short) vide intimation dated 16.03.2023 accepted the return of income filed by the assessee but had raised the demand of Rs. 52,600/- towards the surcharge @ 37% on the taxable income. 5. Aggrieved the assessee was in appeal before the first appellate authority, who vide order dated 13.06.2024 dismissed the appeal filed by the assessee on the ground that the assessee is liable to be taxed at the 'Maximum Marginal Rate' (MMR) along with surcharge @ 37% on income from other sources. 6. Aggrieved the assessee is in appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is the highest slab as per MMR and relied on the orders of the lower authorities. 9. We have heard the rival submissions and perused the materials available on record. The arguments enhanced by the ld. AR is two-fold where the following issues are to be adjudicated: - a. Whether as per Section 2(29C) of the Act, 'Maximum Marginal Rate' include surcharge (i.e., MMR @30% + 4% cess) or as per the revenue which is (MMR @ 30%+ surcharge @37%+ cess @ 4%)? b. If surcharge is in addition to the MMR rate, then whether it would be applicable to income which does not exceed Rs. 50,00,000/-? 10. With regard to the first issue in dispute, the assessee has contended that MMR @30% include any/all types of surcharges and that the ld. AO ought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be: Provided that the amount of income-tax computed in accordance with the provisions of section 111A or section 112 or section 112A of the Income-tax Act shall be increased by a surcharge, for the purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule, except in case of a domestic company whose income is chargeable to tax under section 115BAA or section 115BAB of the Income-tax Act or in case of co-operative society whose income is chargeable to tax under section 115BAD of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther enumerates the rate of percentage for each slab of income. It is quite apparent that the MMR rate has to be in addition to the surcharge and therefore is not inclusive of surcharge. The coordinate bench in the case of Tayal Sales Corporation, 2003 (1) SOT 579 (Hyd.), held that the provisions of Section 2(29C) is worded in such a way that surcharge is to be included along with 'Maximum Marginal Rate' and by no stretch of imagination is MMR inclusive of surcharge. This proposition has been reiterated in various decisions of the Tribunal. Thus, we are not in agreement with the ld. AR's argument on the first issue that 'Maximum Marginal Rate' includes surcharge as the same is not in accordance with the provisions of the Act. 13. With rega ..... X X X X Extracts X X X X X X X X Extracts X X X X
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