PAWAI TRUST,NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, NEW DELHI

ITA 5106/DEL/2025Status: DisposedITAT Delhi06 February 2026AY 2021-22Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI RAJ KUMAR CHAUHAN (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that Section 167B of the Income Tax Act, which prescribes MMR, is not applicable to the assessee, a public charitable trust, as the beneficiaries' shares are not indeterminate. The Tribunal also referred to CBDT Circular No. 320/1982, which clarifies that tax should be applied at normal rates for such trusts.

What were the facts?

The assessee, a charitable trust, filed its return of income for AY 2021-22. The processing officer applied the Maximum Marginal Rate (MMR) instead of normal slab rates, and also levied interest under Section 234C. The assessee appealed to the CIT(A), who dismissed the appeal.

What were the issues?

Whether the Maximum Marginal Rate (MMR) is applicable to a charitable trust instead of normal slab rates, and whether interest under Section 234C was correctly levied.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 234C,Section 167B,Section 10(25),Section 164(1)(iv)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES ‘E’: NEW DELHI.

Before: SHRI S. RIFAUR RAHMAN & SHRI RAJ KUMAR CHAUHAN

For Appellant: Ms. Vasanti Ben Patel, Adv &
Hearing: 11.12.2025

PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER :

1.

This appeal is filed by the assessee against the order of ld. Commissioner of Income-tax (Appeals)ADDL/JCIT (A), Agra (hereinafter referred to ‘ld. CIT (E)’) dated 20.03.2025 for Assessment Year 2021-22. 2. At the time of filing of appeal, the Registry has pointed out a defect that appeal is time barred by 83 days.

2

3.

We have heard both the counsels on the issue of condonation of delay. In our considered opinion, there was a reasonable cause for the delay in filing the appeal. Therefore, we condone the delay in filing the appeal before the Tribunal.

4.

Brief facts of the case are, assessee filed its return of income on 11.10.2021 declaring Total Income at Rs. 53,60,300/-. The a

The order continues below.

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