https://www.taxtmi.com/caselaws?id=462812 ITAT Rajkot set aside CIT(A)'s order regarding tax computation for an AOP (Trust) under section 143(1) processing. The assessee contended that tax should be computed at individual slab rates rather than maximum marginal rate applied by the department. CIT(A) rejected the claim, stating that section 143(1) processing doesn't involve determining applicable tax rates and blamed the assessee for not properly indicating exemption status in the electronic return. ITAT disagreed with CIT(A)'s reasoning, emphasizing that no tax can be levied without legal authority per Article 265 of the Constitution. The tribunal found merit in the assessee's case supported by CBDT Circular and Rajasthan HC precedent in J.K.S. Employees Welfare Fund case. The matter was remanded to CIT(A) for fresh determination considering the circular and judicial precedent, with proper hearing opportunity for the assessee. Appeal allowed for statistical purposes. en-us Thu, 02 Feb 2017 00:00:00 +0530 Thu, 17 Jul 2025 18:58:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462812 ITAT Rajkot set aside CIT(A)'s order regarding tax computation for an AOP (Trust) under section 143(1) processing. The assessee contended that tax should be computed at individual slab rates rather than maximum marginal rate applied by the department. CIT(A) rejected the claim, stating that section 143(1) processing doesn't involve determining applicable tax rates and blamed the assessee for not properly indicating exemption status in the electronic return. ITAT disagreed with CIT(A)'s reasoning, emphasizing that no tax can be levied without legal authority per Article 265 of the Constitution. The tribunal found merit in the assessee's case supported by CBDT Circular and Rajasthan HC precedent in J.K.S. Employees Welfare Fund case. The matter was remanded to CIT(A) for fresh determination considering the circular and judicial precedent, with proper hearing opportunity for the assessee. Appeal allowed for statistical purposes. Case-Laws Income Tax Thu, 02 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462812