9911796707
TMI Blog2024 (6) TMI 1447X X X X Extracts X X X X X X X X Extracts X X X X ..... econdly, assessee has also challenged incorrect levy of additional interest u/s. 234B amounting to Rs. 719/-. 3. The brief facts are that assessee is irrevocable private discretionary Trust. Accordingly, the tax liability of the assessee trust was to be computed at maximum marginal rate in accordance with the provision of Section 164 of the Act. The assessee filed its return of income u/s. 139(1) on 29/07/2022 declaring total income of Rs. 36,930/-. The CPC while processing the return had raised demand of Rs. 3,860/- by way of levy of surcharge and consequential increase in the amount of education cess, interest u/s. 234B. 4. Aggrieved by the levy of surcharge charged, assessee preferred the appeal before the ld. CIT(A), ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Finance Act of the relevant year;]" Thus, the maximum marginal rate is the rate of income tax which includes surcharge if any applicable in relation to the higher slab of income in the case of individual, AOP, BOI as specified in the Finance Act of the relevant year. Thus, the tax rate and surcharge is 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 case of the assessee which provides for rates of income tax for various persons including the individual, HUF, AOP, BOI or artificial juridical person wherein slab rate for levy of tax of rates have been provided. However, the surcharge of income tax is applicable on the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t) exceeding two crore rupees but not exceeding five crore rupees, at the rate of twenty-five per cent. of such income-tax; (d) having a total income (excluding the income by way of dividend or income under the provision of section 111A and section 112A of the Income-tax Act) exceeding five crore rupees, at the rate of thir five per cent. of such income-tax; and (e) having a total income (including the income by way of dividend or income under the provision of section 111A and section 1124) exceeding two crore rupees but is not covered under clauses (c) and 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the total income exceeds Rs. 50,00,000/- and so on. Here in this case, the return of income is only Rs. 36,930/- so on this income, taxes shall be charged at a maximum marginal rate in terms of Section 164 of the Act. Even after the trust is taxed at maximum marginal rate but for levying the surcharge, it is necessary that the slab of income which is chargeable to tax is exceeding Rs. 50,00,000/- and above. Thus, the interpretation and the observation of the ld. CIT (A) is ostensibly against the law. If CPC which is computer assisted programme has made a mistake, then at least ld. CIT (A) should have seen the law in correct perspective; or something should have been brought on record that there is any notification or i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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