AKHIL BHARTIYA GAHOI VAISHAY CHARITABLE TRUST,GWALIOR vs. INCOME TAX OFFICER, EXEMPTION, WARD EXEMPLTION

The assessee has raised the following grounds of appeal:-

That while confirming the order of the AO, passed U/s 154, charging of surcharge, the CIT(A) has completely ignored that the addition made U/s 68, invoking the provisions of sec 115BBE is the subject matter of appeal, pending with CIT(A), duly informed to CIT(A), learned CIT(A), ignoring the facts as above has confirmed the order of the AO passed U/s 154 of Income Tax Act.

That the order passed by CIT Appeal is liable to be set aside.”

We have heard the rival submissions and perused the materials available on record. The assessee filed its return of income on 24-10-2017 for the Assessment Year 2017-18 declaring total income of Rs 15,780/-. Assessment was framed under section 143(3) of the Act on 29-12-2019 determining total income at Rs 25,60,360/- after making addition of Rs 25,44,579/- on account of unexplained cash credit under section 68 of the Act. This addition was taxed at the enhanced rate of 60% by applying the provisions of section 115BBE of the Act. The appeal preferred by the assessee before the Learned NFAC was pending. Later this assessment was sought to be rectified under section 154 of the Act as surcharge at the rate of 25% was omitted to be charged while computing the tax demand of the assessee. Hence a rectification order under section 154 of the Act stood passed on 24-2-2022 in the hands of the assessee levying surcharge at the rate of 25% on tax liability determined. The assessee preferred first appeal before the Learned NFAC which stood dismissed finding no infirmity in the rectification order of Learned AO. Aggrieved, the assessee had filed second appeal before us.

We find that the assessee is aggrieved only on the levy of surcharge of 25% on the enhanced rate of tax at 60% as per section 115BBE of the Act in the present appellate proceedings before us. The quantum appeal against the addition made under section 68 read with section 115BBE of the Act was stated to be pending before the Learned NFAC by the Learned AR. The levy of surcharge at the rate of 25% is statutory in nature and is merely a computational issue which would be consequential to determination of income of the assessee. As and when the determination of income undergoes change pursuant to appellate orders, the levy of tax and consequential surcharge would also undergo change. Hence there is no merit in the appeal of the assessee and accordingly dismissed.

In the result, the appeal of the assessee is dismissed.