YAMUNA TRUST,NEW DELHI vs. ITO WARD 50(1), NEW DELHI
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.
Held
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.
Key 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.
Sections Cited
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
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Ms. Astha Chandra, Judicial Member ITA No. 3267/Del/2023: Asstt. Year: 2022-23 Yamuna Trust, Vs The Deputy Director of B-60/61, C/o Bajaj Auto Ltd., Income Tax, CPC, Bengaluru Naraina Industrial Area, Phase-II, Delhi 110028 (APPELLANT) (RESPONDENT) PAN No. AAATY 0028 J Assessee by : Sh. Mahendra Gohel, CA Revenue by : Sh. Amit Katoch, Sr. DR Date of Hearing: 15.02.2024 Date of Pronouncement: 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
2 ITA No. 3267/Del/2023 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.
Sd/- Sd/- (Astha Chandra) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 28/02/2024 *NV, Sr. PS* Copy forwarded to: Appellant Respondent CIT CIT(Appeals) DR: ITAT ASSISTANT REGISTRAR NEW DELHI
