2025 (12) TMI 399

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.... which filed its return of income in Form ITR 5 on 29.07.2014 calculating tax at the normal slab rate as applicable to an individual. However, the tax has been calculated in the intimation order under section 143(1) of the Act dated 07.10.2024 at the maximum marginal rate of 30% plus HEC as applicable and demand raised at Rs.1,53,230/-. Being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). The ld. Addl./JCIT(Appeals) dismissed the appeal of the assessee by observing as under:- "The appellant has questioned the taxation of the income of the Trust at MMR. The appellant is admitting that in the ITR filed the status of the Appellant was declared as Artificial Juridical Person and the sub status was declared as ....

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....he applicable tax rates as individual rate. If the answers to any of these questions are "yes' or is given as "blank" the software of the CPC works the applicable tax rates as MMR. The software of the CPC has followed the answers given by the appellant that it is a Trust as per PAN and the shares of beneficiaries are not determinate, the Trust is doing Business activity and hence MMR is applied. 5.5. According to the Act the taxation can be based on share of beneficiaries are determinate or indeterminate and whether section 11/12 is applicable. In this classification only Trusts with shares of beneficiaries' determinate and none of the beneficiaries having taxable income are to be taxed at individual rates. All other Trust/ AOP/BOI....

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.... The grounds raised by the appellant are dismissed". 3. On being aggrieved, the assessee preferred an appeal before the ITAT on the following ground:- "That on the facts and circumstances of the case, the ld. JCIT of Income Tax (Appeals) erred in sustaining order passed by CPC u/s. 143(1) thereby confirming rate of taxation on MMR rate @ 30% plus HEC (as applicable) on 'returned income' of the assessee (Deities) instead of normal rates of taxation as applicable to individuals". 4. At the time of hearing, it was the submission of the ld. Counsel for the assessee that as the assessee deity being a juristic person, it can hold property and be in receipt of income and since the sole beneficiary is the Deity/assessee having the st....