ASHOK PATNI FAMILY TRUST,PUNE vs. THE ASST./DY. COMMISSIONER OF INCOME TAX, CIRCLE-7, PUNE

This appeal filed at the instance of assessee is directed against the order of Ld. Addl./JCIT(A), Faridabad [‘Ld. CIT(A)’] dated 25.11.2024 which is arising out of the intimation u/s 143(1) of the Act for Assessment Year 2022-23 framed on 16.03.2023 by the DCIT, CPC, Bengaluru.

The only grievance of the assessee is that Ld. CIT(A) erred in confirming the action of CPC levying surcharge of 37% as against the applicable rate of 10% based upon the income of the assessee.

At the outset, Ld. Counsel for the assessee stated that the issue stands squarely covered by the decision of the Hon’ble Special Bench, Mumbai in the case of Araadhya Jain Trust vs. ITO (ITA No.4272/Mum/2024 dated 09.04.2025) and in light of said judgement the assessee deserves to succeed and surcharge is leviable at the rate of 10% only.

On the other hand, Ld. Departmental Representative supported the order of Ld. CIT(A).

I have heard rival contentions and perused the records placed before me. The only issue is regarding the rate of surcharge leviable on the tax payable by the assessee. The assessee is a family trust and return of income for A.Y. 2022-13 furnished on 26.12.2022 declaring total income of Rs.52,00,660/-. While computing the tax liability, the assessee has paid surcharge at the rate of 10%. In the intimation u/s 143(1), the CPC while processing the return levied the surcharge at the maximum rate of 37%. The assessee challenged the said action of CPC before Ld. CIT(A) but failed to succeed. Before me, Ld. Counsel for the assessee has referred to the judgement of Hon’ble Special Bench, Mumbai in the case of Araadhya Jain Trust (supra). I have carefully gone through the said judgement and find that the Hon’ble Special Bench, Mumbai held that the surcharge is to be levied as per income tax slab as provided in Paragraph A, Part 1, First Schedule and as per first slab, if income exceeds Rs.50 lakhs but do not exceed Rs.1 crore including