RAJIV PASARI FAMILY BENEFICIARY TRUST,KOLKATA V. ITO, WARD-1(1), , KOLKATA

ITA 363/KOL/2025

AI Insights

The case involves the Rajiv Pasari Family Beneficiary Trust appealing against an order by the Addl/JCIT(A), Faridabad, which pertained to the assessment year 2024-2025. The primary issue was the applicability and rate of surcharge on the trust's income, which was below Rs. 50 lakhs. The trust argued that according to a decision by the Special Bench of the Income Tax Appellate Tribunal in the case of Araadhya Jain Trust Vs. ITO, no surcharge should be applied if the income is below Rs. 50 lakhs. The revenue's stance supported the original assessment order, but the Tribunal, referencing the Special Bench's decision, ruled in favor of the trust, leading to the deletion of the surcharge.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829294 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Kolkata
• Assessment Year: misc
• Appeal Filed On: 20-02-2025
• Other Referred Cases: Araadhya Jain Trust Vs. ITO
• Laws Referred To: Finance Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT ADHIKARY
• Assessee Lawyers: AKKAL DUDHEWALA
• Keywords: Maximum Marginal Rate

Judgement Text

" आयकर अपीलीय अधिकरण, “एस.एम.सी” न्यायपीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA श्री जाजज माथन, न्याययक सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अपील सं/ITA No.363/KOL/2025 (नििाारण वर्ा / Assessment Year :2024-2025) Rajiv Pasari Family Beneficiary Trust, 62A, Hazra Road, Theatre Road, Kolkata-700019 Vs ITO, Ward-1(1), Kolkata PAN No. :AACTR 5490 F (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Akkal Dudhewala, AR राजस्व की ओर से /Revenue by : Shri Abhijit Adhikary, Sr. DR सुनवाई की तारीख / Date of Hearing : 12/01/2026 घोषणा की तारीख/Date of Pronouncement : 12/01/2026 आदेश / O R D E R This is an appeal filed by the assessee against the order dated 23.01.2025 passed by the ld.Addl/JCIT(A), Faridabad, for the assessment year 2024-2025. 2. It was submitted by the Ld.AR the assessee is a private beneficiary trust. It was submission that the income of the assessee was below Rs.50 lakhs. It was further submission that the only issue in the assessee’s appeal was as to whether surcharge is leviable and if leviable whether the slab rate should be applied or the maximum rate is to be applied. It was submission that the CPC when processing the assessee’s return had levied surcharge maximum rate of 25% being slab rate. It was submission that the issue was now squarely covered by the decision of the Special Bench of this tribunal in the case of Araadhya Jain Trust Vs. ITO, reported in [2025] 173 taxxmann.com 343 (Mumbai-Trib)(SB), wherein in para 32 the Special Bench has held as follows :- Printed from counselvise.com ITA No.363/KOL/2025 2 32. However, upon carefully going through these decisions, we are of the considered view that the issue arising in the present case never fell for consideration before the Hon’ble Courts. The issue in dispute in those cases was primarily concerning what should be the maximum marginal rate and its applicability. The issue ‘whether the rate of surcharge would also be at the highest rate while computing tax at maximum marginal rate’ was never the issue before the Hon’ble Courts. Thus, in our view, the view expressed by the coordinate benches in decisions referred to in Paragraph 10(supra) lay down the correct proposition of law. Thus, in the ultimate analysis, we hold, in case of Private Discretionary Trusts, whose income is chargeable to tax at maximum marginal rate, surcharge has to be computed on the income tax having reference to the slab rates prescribed in the Finance Act under the heading ‘surcharge on income tax’ appearing in Paragraph A, Part 1, First Schedule, applicable to the relevant assessment year. Hence, reference is decided in favour of the assessee. The records may be returned back to the respective benches for deciding the appeals accordingly. 3. It was submission that as the income of the assessee is below Rs.50 lakhs, no surcharge itself is leviable and this has also been accepted by the CPC in subsequent assessment years. 4. In reply, the Ld. Sr DR vehemently the orders of the AO and JCIT(A). 5. I have considered the rival submission. A perusal of the decision of the Hon’ble Special Bench in the case of Araadhya Jain Trust, referred to by the Ld.AR, clearly shows that the issues in the assesse’s appeal squarely covered by the said decision and when the income of the private trust is below Rs.50lakhs, admittedly no surcharge is leviable. Consequently, respectfully following the decision of the Special Bench of this Tribunal in the case of Araadhya Jain Trust, referred to supra, the AO is directed to delete the levy of surcharge as the income of the assessee is below Rs.50 lakhs. Printed from counselvise.com ITA No.363/KOL/2025 3 6. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 12/01/2026. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 12/01/2026 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// Printed from counselvise.com "