SANJAY NAYAR FAMILY TRUST,MUMBAI vs. ITO WARD 22(2)(1), MUMBAI

ITA 2154/MUM/2026Status: DisposedITAT Mumbai15 July 2026AY 2022-2313 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the maximum marginal rate under section 2(29C) does not mandate the highest surcharge rate. The surcharge must be determined based on the computation mechanism and slab rates in the Finance Act, following a Special Bench decision.

What were the facts?

The assessee, a private discretionary trust, filed its return of income which was processed under section 143(1). The CPC levied surcharge at 37% on short-term capital gains (non-STT) while the assessee contended that it should be 15% as its income, excluding dividend and special rate income, did not exceed ₹2 crore.

What were the issues?

Whether the surcharge rate on short-term capital gains should be determined based on the total income exceeding ₹5 crore or based on the specific income category not exceeding ₹2 crore, and if the definition of 'maximum marginal rate' dictates the surcharge rate.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 2(29C),Section 111A,Section 112A,Section 234C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “G” MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI PAWAN SINGH

For Appellant: CA. : Shri Basavaraj Hiremath – CIT DR
For Respondent: Shri Rajgopal Parthasarathi –
Hearing: 07/07/2026Pronounced: 15/07/2026

PER OM PRAKASH KANT, AM

These two appeals filed by the assessee are directed against two separate orders dated 15.12.2025 and 16.12.2025 passed by the learned Additional/Joint Commissioner of Income-tax (Appeals)-1, Ahmedabad [hereinafter referred to as "the learned CIT(A)"] for the Assessment Years 2022-23 and 2023-24, whereby the action of the Sanjay Nayar Family Trust Centralized Processing Centre ("CPC") in levying surcharge at the rate of 37 per cent on the tax attributable to the assess

The order continues below.

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