NAWANDER ARCADE,LATUR V. ITO WARD -1 , LATUR

ITA 479/PUN/2025

AI Insights

The case involves Nawander Arcade, a private trust, appealing against the surcharge levied by the CPC on their income for the assessment years 2023-24 and 2024-25. The primary legal issue was whether the surcharge was correctly applied by the CPC, given that the trust's income was below the Rs. 50 lakh threshold. The tribunal referenced a decision by the Hon'ble Special Bench in the case of Araadhaya Jain Trust vs. ITO, which clarified that surcharges are applicable only if the income exceeds Rs. 50 lakh, based on the slab rates provided in the First Schedule of the Finance Act. The tribunal found that the CPC's imposition of a surcharge was incorrect and ruled in favor of the appellant.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315440 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2024-2025
• Other Referred Cases: Araadhaya Jain Trust vs. ITO in ITA No. 4272/Mum/2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDIRA ADAKIL
• Assessee Lawyers: SACHIN KUMAR
• Keywords: Maximum Marginal Rate

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.478 and 479/PUN/2025 Assessment Years : 2023-24 and 2024-25 Nawander Arcade, R-7, 1367-4511/6, Kawa Road, Opp Shivneri Gate, Latur 413 512, Maharashtra PAN : AAAAN2827K Vs. ITO, Ward-1, Latur Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeals at the instance of assessee pertaining to A.Yrs. 2023-24 and 2024-2025 are directed against the separate orders dated 27.01.2025 and 23.01.2025 passed by Addl./JCIT(A), Faridabad u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) arising out of the respective assessment orders. 2. At the outset, Ld. Counsel for the assessee submitted that the common issue raised in both these appeals is that the CPC erred in levying surcharge on the income of the assessee which was below Rs.50.00 lakh for both the impugned years. In support placed reliance on the decision of Hon’ble Special Bench in the case of Araadhaya Jain Trust vs. ITO in ITA No. 4272/Mum/2024 order dated 09.04.2025 where it has been held Appellant by : Shri Sachin Kumar Revenue by : Mrs. Indira Adakil Date of hearing : 06.05.2025 Date of pronouncement : 13.05.2025 ITA Nos.478 and 479/PUN/2025 Nawander Arcade 2 that surcharge is leviable based on the slab rate provided in First schedule under the heading “surcharge on income tax” appearing in Paragraph A, Part 1, applicable to the relevant assessment year. It was therefore contended that surcharge is leviable as per slab rate and the surcharge is leviable only if the income exceeds Rs.50.00 lakh. 3. On the other hand, ld. Departmental Representative vehemently argued supporting the orders of the lower authorities. 4. We have considered the rival arguments made by both the sides and perused the record placed before us. We observe that the assessee is a private trust and income of Rs.7,84,000/- and Rs.8,20,920/- declared in the income-tax returns for A.Yrs. 2023-24 and 2024-25 filed on 28.07.2023 and 27.07.2024 respectively. Income of the assessee is chargeable at Maximum Marginal Rate and due taxes have been paid. However, CPC has levied surcharge 37% on the tax payable on the total income. Before us. Ld. Counsel for the assessee has referred to the decision of Special Bench in the case of Araadhaya Jain Trust (supra) where it has been held that surcharge shall be levied based on the slab rates referred in First Schedule, Paragraph A of Part 1. First Schedule to the Finance Act, 2023 which is reproduced below for necessary guidance : ITA Nos.478 and 479/PUN/2025 Nawander Arcade 3 ITA Nos.478 and 479/PUN/2025 Nawander Arcade 4 5. From going through the above schedule, it is manifest that levying of surcharge comes into effect only if the total income exceeds Rs.50.00 lakh, however, in the case of assessee since the income is below Rs.50.00 lakh for both the impugned years, therefore no surcharge is leviable. We therefore hold that assessee has correctly computed the tax liability in the income tax returns filed by it for both the years under appeal before us. Impugned orders for both the years under consideration are set ITA Nos.478 and 479/PUN/2025 Nawander Arcade 5 aside and grounds of appeal raised by the assessee for both the years are allowed. 6. In the result, both the appeals of the assessee are allowed. Order pronounced on this 13th day of May, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 13th May, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. यथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0011च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "