2025 (6) TMI 1936

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....ddl/Joint Commissioner of Income-tax (Appeals) -(A)2 Vadodara, erred in confirming the variance in the intimation u/s 143(1) made by CPC in respect of the rate of surcharge and erred: 1. In not adjudicating and hence confirming that the AO CPC has power to vary the rate of surcharge while processing the return u/s 143(1). 2. In holding that in the case of the appellant provisions of section 167B rws 2(29C) are applicable and therefore the appellant is subjected to taxation at the highest slab of income tax (including surcharge) as applicable for the given AY which is 37% surcharge in the case of the appellant for the given AY. 3. In holding that when the provisions of section 167B rws 2(29C) are applicable, the whole income would be s....

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....n. 8. Without prejudice to the fifth ground of appeal, in observing and holding that the applicable rate of surcharge in the case of short term capital gains u/s 111A and dividend income is also 37% on the basis of provisions of the relevant Finance Act, when in fact, as per the provisions of the relevant Finance Act, the maximum rate of surcharge in case of short term capital gains u/s 111A and dividend is 15%. 9. The Appellant craves leave to add to, withdraw or modify any of the grounds of appeal at the time of hearing." 3. Although the assessee has raised several grounds of appeal, the only grievance of the assessee pertains to - whether, in the case of private discretionary trusts whose income is chargeable to tax at the Maximum M....

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..... On appeal, the Ld. Addl./JCIT(A) dismissed the ground of appeal of the assessee on this issue observing that the entire income of the assessee, including the long term and short term capital gains and dividend income, is subjected to MMR under section 167B r.w.s. 2(29C) with surcharge @ 37%. 7. We have perused the decision of the Special Bench of the Mumbai Tribunal in the case of Araadhya Jain Trust (supra) and find that the impugned issue stands decided in favour of the assessee. We also observe that the said decision of the Special Bench was not available when the impugned order was passed by the Ld. Addl./JCIT(A). The Special Bench of the Mumbai Tribunal in the case of Araadhya Jain Trust (supra) vide its order dated 09.04.2025 has h....

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.... 15 per cent (viz. short-term capital gains u/s 111A and dividend income) as per the proviso in Paragraph A of Part I of the First Schedule to the Finance Act, 2021 and the balance income of Rs. 8,35,168/-, and accordingly, as per clause (e) under the heading surcharge on income-tax in Paragraph A of Part I of the First Schedule to the Finance Act, 2021, the applicable rate of surcharge on such balance of Rs. 8,35,168/- ought to be 15 per cent. We also observe that the Ld. AO/CPC has passed rectification order under section 154 of the Act, dated 07.08.2023 wherein partial relief is granted and surcharge is levied at the rate of 15% on income of Rs. 4,77,46,882/- on which maximum surcharge is 15 per cent (viz. short-term capital gains u/s 11....