The ITAT allowed the appellant's appeal, directing the Assessing...

The ITAT allowed the appellant's appeal, directing the Assessing Officer to apply the surcharge at 10% instead of 37% on the income tax computed at the maximum marginal rate of 30%. The Tribunal held that for an Association of Persons with total income exceeding fifty lakhs but not exceeding one crore, the surcharge must be calculated as per the slab rates specified under the Finance Act, not at the highest surcharge rate. The decision relied on the Special Bench ruling in Araadhya Jain Trust, which clarified that the expression "if any" in the definition of maximum marginal rate surcharge must be read in conjunction with the prescribed surcharge slabs. Consequently, the tax liability was to be recomputed applying the correct surcharge rate, resulting in relief to the appellant.

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