SRIJAN FAMILY TRUST,NEW DELHI V. ITO WARD-28(1), NEW DELHI

ITA 386/DEL/2025

AI Insights

The case involves the Srijan Family Trust appealing against the order of the Commissioner of Income Tax (Appeals), which upheld an incorrect surcharge rate of 37% on dividend income for the Assessment Year 2023-24. The Trust argued that the correct maximum surcharge rate applicable was 15%. Initially, the Assessing Officer/CPC processed the return with the higher surcharge, leading to the appeal. The CPC later corrected this error under section 154, applying the correct surcharge rate. Despite this correction, the CIT(A) upheld the original decision, prompting the Trust to appeal to the Income Tax Appellate Tribunal, which ultimately set aside the CIT(A)'s order and accepted the CPC's corrected surcharge application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717824 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2023-2024
• Appeal Filed On: 23-01-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: LALIT MOHAN; ANKIT
• Keywords: Set aside
• Section: 154

Judgement Text

"1 ITA No. 386/Del/2025 Srijan Family Trust Vs. ITO IN THE INCOME TAX APPELLATE TRIBUNAL DELHI [DELHI BENCH:“ B” New Delhi] BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER I.T.A. No. 386/DEL/2025 (A.Y 2023-24) M/s Srijan Family Trust 32, Friends Colony East New Delhi-110065 Vs Income Tax officer, Ward-28 (1), Delhi Appellant Respondent PAN:AAXAS9474L Assessee by Sh. Lalit Mohan, CA and Shri Ankit Kumar, Adv Revenue by Sh. Rajesh Kumar Dhanesta, Sr. DR Date of Hearing 30/07/2025 Date of Pronouncement 13/08/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)/ADDL/JCIT(A), Faridabad (‘Ld. CIT(A) for short), New Delhi dated 25/11/2024 for the Assessment Year 2023-24. 2. Brief facts of the case are that, the Assessee filed return of income at Rs. 1,30,13,620/- the A.O./CPC while processing the return of income, computed the tax liability by levying a surcharge rate at 37% on the dividend income vide intimation dated 18/12/2023 passed u/s 143(1) of the Income Tax Act, 1961 ('Act' for short). Aggrieved by the Intimation dated 18/12/2023, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order Printed from counselvise.com 2 ITA No. 386/Del/2025 Srijan Family Trust Vs. ITO dated 25/11/2024, dismissed the Appeal filed by the Assessee. As against the order of the Ld. CIT(A), the Assessee preferred the present appeal. 3. The ld. Counsel for the Assessee vehemently submitted that, the Ld. CIT(A) committed grave error in dismissing the Appeal of the Assesseeby upholding the erroneous levy of incorrect rate of surcharge of 37% against the correct rate of surcharge of 15% maximum surcharge rate applicable on dividend income. The Ld. Assessee's Representative also submitted that the Assessee has also filed application u/s 154 of the Act which has been allowed by levying correct surcharge by the CPC, therefore, submitted that order of the Ld. CIT(A) requires to be quashed. 4. Per contra, the Ld. Department's Representative relying on the orders of the Lower Authorities, sought for dismissal of the Appeal. 5. We have heard both the parties and perused the material available on record.It is found that the Assessee filed an application u/s 154 of the Act as against the original Intimation passed by the CPC/A.O. dated 18/12/2023 for Assessment Year 2023-24. The CPC vide order dated 14/06/2024, allowed the said application filed by the Assessee by levying correct rate of surcharge on the dividend income.The said order dated 14/06/2024 passed u/s 154 of the Act Printed from counselvise.com 3 ITA No. 386/Del/2025 Srijan Family Trust Vs. ITO is placed at page No. 52-59 of the Paper Book filed by the Assessee. Considering the fact that,the CPC itself has rectified the mistake wherein levied the correct rate of surcharge on the dividend income, the order of the Ld. CIT(A) is liable to be set aside. Accordingly, order impugned dated 25/11/2024 passed by the Ld. CIT(A) is hereby quashed. 6. In the result, Appeal of the Assessee is allowed. Order pronounced in the open court on 13th August, 2025 Sd/- Sd/- (MANISH AGARWAL) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 13.08.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTR ITAT, NEW DELHI Printed from counselvise.com "