2025 (8) TMI 1724

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....-23. 2. Brief facts of the case are that the assessee is a trust and filed its return of income on 21.07.2022 declaring total income of Rs.5,67,53,750/- The return was processed u/s 143(1) by the CPC wherein the assessee was charged tax at a flat rate of 30% and surcharge as applicable as against the normal rate of tax as per the slab provided in the act paid by the assessee. Against the said order, the assessee filed an appeal before the Ld. CIT(A) who dismissed the appeal of the assessee. 3. Aggrieved by the said order, the assessee is in appeal before the Tribunal by taking following grounds of appeal: I. RATE OF TAX: 1.1 On the facts and in the circumstances of the case and in law the learned Commissioner of Inco....

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....and comprises of Dividend income (Rs. 5,45,55,600/-) and Other Income (Rs. 21,98,149/-). Therefore, the Appellant is liable to pay surcharge at the rate of15% on entire income. However, the learned Assessing Officer has levied surcharge @37% on tax relating to "Other Income - Rs. 21,98,149/-" of Rs. 6,59,445/- as against the rate of 15% applicable thereon. 2.3 The learned CIT(Appeals) failed to appreciate the explanations/submissions furnished by the Appellant. The learned CIT(Appeals) failed to consider and deal with various Appellate Order of NFAC, New Delhi and the Order of the ITAT, New Delhi, in the case of Associate Trusts of the Appellant and on the identical facts. The appellant prays that the Surcharge levied erro....

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....)/81-TP (Pt.)] deals with this issue. The said Circular is reproduced as under: "Circular: No. 320 [F. No. 131(31)/81-TP (PL)], dated 11-1-1982- SECTION 167A ASSESSMENT WHERE SHARES OF MEMBERS UNKNOWN) 911. Whether the section is applicable to income received by trustees on behalf of provident funds created exclusively for the benefit of employees 1. A reference is invited to paragraph 15.1 to 15.7 of the Explanatory Notes on the provisions relating to direct taxes in the Finance Act, 1981 [Circular No. 308, dated 29-6-1981] which explain the scope and ambit of section 167A, as inserted by the Finance Act, 1981. 2. A question has been raise whether the provisions of section 167A of the Income tax Act whic....