2024 (7) TMI 1621

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....4, in proceedings under section 143(1) of the Income Tax Act, 1961 (in short 'the Act'). 2. Heard both the parties at length. Case file perused. 3. The assessee pleads the following substantive grounds in the instant appeal: "1. The Ld. CIT (A) has erred by levying surcharge of 37%, on the Maximum Marginal Rate ('MMR) of Tax being 30%, which already includes any/all types of surcharges. The AO ought to have only applied a blanket/flat rate of MMR being 30% on the taxable income of the assessee irrespective of the income of the assessee. 2. Without prejudice, even if such surcharge was applicable, the same can be levied only where the income of the assessee exceeds Rs. 50,00,000. In the present case since the....

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.... order dated 30.01.2023 by the CPC whereby total income of the assessee was computed at Rs. 16,24,880/- in place of Rs. 14,33,440/- as declared by the assessee. As per rectification order, the amount of Rs. 1,73,278/- on account of surcharge has also been levied which was subsequently disputed by the assessee before the Ld. Commissioner by claiming that as per section 2(29C) of the Act, where the total income earned is less than Rs. 50 lakhs then no surcharge is liable to be levied. It is enumerated in the 1st Schedule of the Act introduced vide Finance Act, 2021, the monetary limit of total taxable income has been prescribed i.e. exceeding Rs. 50 lakhs for levy of surcharge. Further by introducing Finance Act, 2023....

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....come-tax Act) 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 provisions of section 111A and section 112A of the Income-tax Act) exceeding five crore rupees at the rate of thirty-seven per cent of such income-tax; and (e) having a total income (including the income by way of dividend or income under the provisions of section 111A and section 112A of the Income-tax Act) exceeding two crore rupees, but is not covered under clauses (c) and (d), shall be applicable at the rate of fifteen per cent of such income-tax: 4. We observe that though the Ld. Commissioner....