2025 (1) TMI 278

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....dl.CIT) - Ld. Sr. DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2022-23 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 30-07-2024 in the matter of an intimation issued by CPC u/s 154 of the Act on 02-05-2023 levying education cess on total tax liabi....

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....e applicable only for income earned in India. Reliance was placed on various decisions of Tribunal to support the same. However, Ld. CIT(A) rejected the same on the ground that education cess is an additional levy that is applied on the basic tax liability by the Government to generate revenue for education. The assessee claimed relief u/s 90. The case laws being relied upon by the assessee were h....

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....s arising in India. The Ld. CIT(A) has denied the claim on the ground that the assessee has claimed relief u/s 90. However, in our considered opinion, tax rates are computed first and thereafter, applicable relief is granted to the assessee. As per Article 2(1)(b)(i) & (ii) of India-USA DTAA, surcharge and surtax are included in the maximum rates as specified under Articles 10 and 11 of DTAA. Ther....