YAMUNA TRUST,NEW DELHI vs. ITO WARD 50(1), NEW DELHI

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ITA 3267/DEL/2023Status: DisposedITAT Delhi28 February 2024AY 2022-23Bench: Dr. B. R. R. Kumar, Accountant Member Ms. Astha Chandra (Judicial Member)2 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, after verifying the records, found the total interest income to be Rs. 4.15 crores and dividend income Rs. 75.57 crores. It directed that in accordance with the provisions of the Act, a 25% surcharge be levied on interest income and a 15% surcharge on the dividend received.

What were the facts?

The assessee challenged the CIT(A)'s order confirming a 37% surcharge levy on interest income of Rs. 4.15 crores. The assessee contended that considering total income, which included a dividend of Rs. 75.57 crores, a lower surcharge rate of 25% should apply as per the First Schedule to the Finance Act.

What were the issues?

Whether the correct surcharge rate applicable to the assessee's interest income is 37% or 25%, considering the total income which includes significant dividend income, as per the Finance Act.

Which sections of the Income-tax Act were involved?

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI

Before: Dr. B. R. R. KumarMs. Astha Chandra

Hearing: 15.02.2024Pronounced: 28.02.2024

ORDER Per Dr. B. R. R. Kumar, Accountant Member:

This appeal has been filed by the assessee against the order of ld. CIT(A)-12, Mumbai dated 21.09.2023.

Following ground had been raised by the assessee:

“1. The learned Commissioner of Income Tax (Appeals) erred in confirming levy of surcharge on interest income of Rs. 4,15,29,646/- at the maximum rate of 37% in the case of the Appellant. The learned CIT(Appeals) failed to appreciate that the total interest income of the appellant for the above year Rs. 4,15,29,646/- (excluding the income by way of dividend of Rs. 75,57,27,654/- which exceeds Rs. 2 crores but does not exceed Rs. 5 crores. Therefore, Clause (iii) of the Paragraph (3) of Part-1 of First Schedule to the Finance Act, is applicable in the case of the Appellant, and the applicable surcharge rate is 25%.”

Heard the arguments of both the parties and perused the material

Yamuna Trust available on record.

On verification of the records, it is found that the total interest income of the assessee was Rs. 4.15 crores and the dividend was Rs. 75.57 crores. Hence, it is directed that in accordance with the provisions of the Act, 25% surcharge be levied @25% on interest income and 15% on the Dividend received.

In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 28/02/2024.

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