ITO v. Tayal Sales Corporation

1 SOT 579Income Tax Appellate Tribunal2003#6217 most cited

What is ITO v. Tayal Sales Corporation authority for?

The maximum marginal rate (MMR) of income tax is applied, and surcharge is levied separately if applicable. Surcharge is not leviable if the quantum of income is below a certain threshold.

18

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2024 to 2025.

Also referred to as

ITO vs. Tayal Sales Corporation · 2003 · ITAT · maximum marginal rate · surcharge · slab-based surcharge · income tax rate · section 143(1) · section 167B · section 164 · section 111A · section 112A · section 112

Sections most often in play

Section 143(1)Section 2(29C)Section 167BSection 164Section 111ASection 112ASection 1961Section 112

Issues it is cited on

section 2(29c)business trustsection 167bsection 167section 164section 112asection 2(1)section 111amaximum marginal ratesection 112section 161section 115jc

Judgments citing ITO v. Tayal Sales Corporation

MALL OF JAIPUR OWNERS WELFARE ASSOCIATION,JAIPUR vs. DCIT, CIRCLE-6, JAIPUR, JAIPUR

In the result, appeal of the assessee is allowed

ITA 333/JPR/2025[2024-25]Status: DisposedITAT Jaipur11 Sept 2025AY 2024-25

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Rohan Mittal, AdvFor Respondent: Shri Gautam Singh Choudhary, JCIT a
Section 139(1)Section 143(1)Section 250

…9. Though we are aware about several decision of ITAT on this issue Namely (1) Lintas Employees Holiday Assistance (ITA No 1796 /MUM/2024 dated 26072024], (2) Ujjwal Business Trust Bombay V CPC ITA 602/M/2024 dt 28- 062024) (3) Tayals Sales Corporation [2003] 1 SOT 579 (Hyderabad) /ITO v. Tayal Sales Corporation [2003] 1 SOT 579 (Hyderabad), however as none of those decisions have considered the decision of honorable Supreme court and Honourable high courts and also the authoritative commentaries were also not placed before benches, we tend to follow the decision of Honorable High courts. 8 Mall of Jaipur Owner…

ADPR & ASSOCIATES,NASHIK vs. ITO WARD 1(1) , NAHSIK

ITA 1885/PUN/2024[2022-23]Status: DisposedITAT Pune26 Jun 2025AY 2022-23

Bench: Shri R.K. Panda & Ms. Astha Chandra

For Appellant: Smt. Payal R. DedhiaFor Respondent: Shri Ramnath P. Murkunde
Section 143(1)

…e held at 30%, plus the surcharge based on the total income of the appellant & the applicable Education Cess (decisions of the Hyderabad ITAT in the cases of Sriram Trust, Hyderabad (ITA Nos.439 to 441/Hyd/2024 decided on 19.06.2024 & Tayal Sales Corporation (1 SOT 579) relied). 2. Appellant craves leave to add / amend / alter any grounds of appeal and / or prayers before or at the time of hearing.” 5. At the outset, the Ld. AR submitted that the Ld. Centralized Processing Centre, Bengaluru/Assessing Officer (“AO/CPC”) erred in levying surcharge of 37% as against the rate of surcharge applicable at the rate of 1…

ADPR & ASSOCIATES,NASHIK vs. ITO WARD 1(1), NASHIK

ITA 1884/PUN/2024[2021-22]Status: DisposedITAT Pune26 Jun 2025AY 2021-22

Bench: Shri R.K. Panda & Ms. Astha Chandra

For Appellant: Smt. Payal R. DedhiaFor Respondent: Shri Ramnath P. Murkunde
Section 143(1)

…e held at 30%, plus the surcharge based on the total income of the appellant & the applicable Education Cess (decisions of the Hyderabad ITAT in the cases of Sriram Trust, Hyderabad (ITA Nos.439 to 441/Hyd/2024 decided on 19.06.2024 & Tayal Sales Corporation (1 SOT 579) relied). 2. Appellant craves leave to add / amend / alter any grounds of appeal and / or prayers before or at the time of hearing.” 5. At the outset, the Ld. AR submitted that the Ld. Centralized Processing Centre, Bengaluru/Assessing Officer (“AO/CPC”) erred in levying surcharge of 37% as against the rate of surcharge applicable at the rate of 1…

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

In the result, appeal of the assessee is allowed

ITA 2782/PUN/2024[2023-24]Status: DisposedITAT Pune16 May 2025AY 2023-24

Bench: SHRI MANISH BORAD (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)

For Appellant: Shri Kiran SanmaneFor Respondent: Mrs. Indira Adakil
Section 143(1)Section 164Section 167BSection 2Section 3

…ld be at 30%, being the maximum marginal rate, however, no surcharge would be leviable, as the quantum of income is less than Rs.50 lacs. In support of such contention, Id. Counsel relied upon the following decisions: 1. ITO vs. Tayal Sales Corporation [2003] 1 SOT 579 (Hyd.) 2. Lintas Employees Professional Development Trust vs. ITO (ITA No. 4791/Mum/2023 decided on 29.05.2024) 3. Sriram Trust, Hyderabad vs. ITO (ITA Nos. 439, 440 & 441/Hyd./2024, decided on 19.06.2024) 4. Ujjwal Business Trust vs. CPC (in ITA No. 602/Mum2024 decided on 28.06.2024) 5. Lintas Employees Holiday Assistance Trust vs. CPC (ITA No. 17…

SOW RACHNA RATHI FAMILY TRUST,PUNE vs. DY DIRECTOR OF INCOME TAX CPC, BENGULURU

In the result, appeal of the assessee is allowed

ITA 2713/PUN/2024[2022-23]Status: DisposedITAT Pune14 May 2025AY 2022-23

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2713/Pun/2024 Assessment Year : 2022-23

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Ganesh B Budruk
Section 143(1)Section 2Section 250Section 3

…d be at 30%, being the maximum marginal rate, however, no surcharge would be leviable, as the quantum of income is less than Rs.50 lacs. In support of such contention, Id. Counsel relied upon the following decisions: 1. ITO vs. Tayal Sales Corporation [2003] 1 SOT 579 (Hyd.) 2. Lintas Employees Professional Development Trust vs. ITO (ITA No. 4791/Mum/2023 decided on 29.05.2024) 3. Sriram Trust, Hyderabad vs. ITO (ITA Nos. 439, 440 & 441/Hyd./2024, decided on 19.06.2024) 4. Ujjwal Business Trust vs. CPC (in ITA No. 602/Mum2024 decided on 28.06.2024) 5. Lintas Employees Holiday Assistance Trust vs. CPC (ITA No…

NIK FAMILY TRUST,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX- CIRCLE 23(1), MUMBAI

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 403/MUM/2025[2021-22]Status: DisposedITAT Mumbai08 May 2025AY 2021-22

Bench: Hon’Ble Shri Sandeep Gosainnik Family Trust Vs. Dcit, Circle – 23(1) C-7, Ishwar Niwas Sick Piramal Chamber. Nagar, Vp Raod, Girgaon. Pan/Gir No. Aadtn2244C (Applicant) (Respondent) Assessee By Shri Dharan Gandhi A/W Shri Ashutosh Patare Revenue By Shri Avinash Karpe, Sr. Dr Date Of Hearing 01.05.2025 Date Of Pronouncement 08.05.2025 आदेश / Order Per Sandeep Gosain, Jm: The Present Appeal Has Been Filed By The Assessee Challenging The Impugned Order 24.12.2024 Passed U/S 250 Of The Income Tax Act, 1961 (‘The Act’), By The National Faceless Appeal Centre, Delhi (Nfac) For The Assessment Year 2021-22. 2. The Only Effective Issue Raised In The Present Appeal Regarding Levying Of Surcharge. In This Regard It Is Submitted That Assessee Is A Discretionary Trust, Eligible To File Return In Itr-5, The Assessee Had Filed Its Return Of 2 Nik Family Trust, Mumbai

Section 143(1)Section 164Section 2Section 2(1)Section 250

…d be at 30%, being the maximum marginal rate, however, no surcharge would be leviable, as the quantum of income is less than Rs.50 lacs. In support of such contention, ld. Counsel relied upon the following decisions: 1. ITO vs. Tayal Sales Corporation [2003] 1 SOT 579 (Hyd.) 2. Lintas Employees Professional Development Trust vs. ITO (ITA No. 4791/Mum/2023 decided on 29.05.2024) 3. Sriram Trust, Hyderabad vs. ITO (ITA Nos. 439, 440 & 441/Hyd./2024, decided on 19.06.2024) 5 NIK Family Trust, Mumbai 4. Ujjwal Business Trust vs. CPC (in ITA No. 602/Mum2024 decided on 28.06.2024) 5. Lintas Employees Holiday Assist…

SHRI SORATHIYA DARJI KEDVANI MANDAL,VADODARA vs. THE ITO, WARD-1(2)(2), VADODARA

In the result, the appeal of the assessee is allowed

ITA 112/AHD/2025[2021-22]Status: DisposedITAT Ahmedabad02 May 2025AY 2021-22

Bench: Shri Suchitra Kambleassessment Year 2021-22

For Appellant: Shri Pratik P. Darji, A.RFor Respondent: Shri N.J. Vyas, Sr. D.R
Section 143(1)Section 167BSection 2

…elied on the decisions of Ujjwal Business Trust Vs. ITO, CPC in ITA No. 602/Mum/2024, M/s. Lintas Employees Holiday Assistance Trust Vs. CPC in ITA No. 1796/Mum/2024, Shriram Trust Vs. ITO in ITA No. 439-441/Hyd/2024 and ITO Vs. Tayal Sales Corporation [2003] 1 SOT 579 (Hyd.). 5. The ld. D.R. submitted that the CIT(A) has rightly held that if surcharge of highest slab is mentioned the Finance Act, then, surcharge will be included in tax and even in cases of maximum rate will be calculated accordingly. The maximum marginal rate includes surcharge in relation to highest slab of income, even though, income of the a…

MAHALAXMI CONSTRUCTION CO,MUMBAI vs. ASST. DIRECTOR OF INCOME TAX, CPC , BENGALURU

In the result, appeals of the assessee are allowed

ITA 4060/MUM/2024[2021-2022]Status: DisposedITAT Mumbai23 Apr 2025AY 2021-2022

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 143(1)Section 2Section 255(3)

…dal Exports Ltd [(2011) 8 SCC 333], which held that bracketed phrases serve as supplementary explanations. The counsel also relied on several Tribunal decisions supporting slab-based surcharge application, including: 1. ITO vs. Tayal Sales Corporation ((2003) 1 SOT 579 (Hyd.)] 2. Lintas Employees Professional Development Trust vs. ITO (ITA No. 4791/Mum/2023); 3. Sriram Trust, Hyderabad vs. ITO (ITA Nos. 439-441/Hyd./2024); 4. Ujjwal Business Trust us. CPC (ITA No. 602/Mum/2024); 5. Lintas Employees Holiday Assistance Trust vs. CPC (ITA No. 1796/Mum/2024); 6. Jitendra Gala Navneet Trust & Dilip Sampat Navneet Trus…

MAHALAXMI CONSTRUCTION CO,BHAYANDAR WEST vs. DEPUTY DIRECTOR OF INCOME TAX CPC BANGELURU, BANGELURU

In the result, appeals of the assessee are allowed

ITA 4008/MUM/2024[2022-23]Status: DisposedITAT Mumbai23 Apr 2025AY 2022-23

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 143(1)Section 2Section 255(3)

…dal Exports Ltd [(2011) 8 SCC 333], which held that bracketed phrases serve as supplementary explanations. The counsel also relied on several Tribunal decisions supporting slab-based surcharge application, including: 1. ITO vs. Tayal Sales Corporation ((2003) 1 SOT 579 (Hyd.)] 2. Lintas Employees Professional Development Trust vs. ITO (ITA No. 4791/Mum/2023); 3. Sriram Trust, Hyderabad vs. ITO (ITA Nos. 439-441/Hyd./2024); 4. Ujjwal Business Trust us. CPC (ITA No. 602/Mum/2024); 5. Lintas Employees Holiday Assistance Trust vs. CPC (ITA No. 1796/Mum/2024); 6. Jitendra Gala Navneet Trust & Dilip Sampat Navneet Trus…

LINTAS EMPLOYEES HOLIDAY ASSISTANCE TRUST ,MUMBAI vs. ITO , WARD, 22(2)(1), MUMBAI

In the result, the appeal filed by the assessee is allowed as per above terms

ITA 3949/MUM/2024[2023-24]Status: DisposedITAT Mumbai20 Jan 2025AY 2023-24

Bench: MS. KAVITHA RAJAGOPAL (Judicial Member), SHRI. GAGAN GOYAL (Accountant Member)

For Appellant: Shri. Prakash JotwaniFor Respondent: Ms. Rajni Rani Roy, SR. AR
Section 143(1)Section 2Section 250

…assessee case for A.Y. 2018-19 to 2020-21 and relied on the principles of consistency and prayed that the same ought to be deleted. The ld. AR placed his reliance on the decisions of the coordinate benches in the case of ITO vs. Tayal Sales Corporation [2003] 1 SOT 579 (HYD.), the assessee’s case for A.Y. 2021-22 and 2022-23 and in the case of Ujwal Business Trust vs. Income Tax CPC, Exem Ward 2(4), ITA No. 602/Mum/2024, for A.Y. 2022-23, order dated 28.06.2024, where the coordinate benches, on this issue, has decided this issue in favour of the assessee. 8. The learned Departmental Representative (‘ld. DR’ for s…

RIA ZAVERI TRUST,AHMEDABAD vs. THE ADIT,CPC, BANGALORE PRESENT JURISDICTION THE ITO, WARD-7(2)(1), AHMEDABAD

The appeal of the assessee is allowed

ITA 1719/AHD/2024[2021-22]Status: DisposedITAT Ahmedabad11 Dec 2024AY 2021-22

Bench: Dr. Brr Kumarshri Tr Senthil Kumar

For Appellant: Shri Vartik Chokshi, A.RFor Respondent: Shri Rignesh Das, Sr. DR
Section 111ASection 112Section 112ASection 115BSection 2

…Tribunal in the cases of Ujjwal Business Trust Vs. ITO, CPC in ITA No. 602/Mum/2024, M/s. Lintas Employees Holiday Assistance Trust Vs. CPC in ITA No. 1796/Mum/2024, Shriram Trust Vs. ITO in ITA No. 439- 441/Hyd/2024 and ITO Vs. Tayal Sales Corporation [2003] 1 SOT 579 (Hyd.). For the sake of ready reference, the order in the case of Ujjwal Business Trust (cited supra) is reproduced hereunder:- 6. Section 2(29C) reads as under:- "[(29C) "maximum marginal rate" means the rate of income-tax (including surcharge on income-tax, if any) applicable in relation to the highest slab of income in the case of an individua…

CLESTRA FOUNDATION ,BANGALORE vs. INCOME TAX OFFICER, WARD-4(2)(3), BANGALORE

In the result, the appeal of the assessee is dismissed

ITA 1478/BANG/2024[2023-24]Status: DisposedITAT Bangalore18 Nov 2024AY 2023-24

Bench: Shri Ramit Kochar & Shri Keshav Dubeyassessment Year: 2023-24

For Appellant: Shri Ravindra T., A.RFor Respondent: Shri Ganesh R. Ghale, Standing Counsel for department
Section 115JSection 143(1)Section 161Section 164Section 164ASection 167BSection 2Section 250Section 3

…was not applicable for Income below Rs.50 lakhs. Clestra Foundation, Bangalore Page 2 of 14 3. The learned CPC erred in interpreting Section 2(29C) by levying Maximum marginal rate on the whole of the Income which was against the judicial precedent in [2003] 1 SOT 579 (Hyderabad) [01-02-2001] Income Tax Officer v. Tayal Sales Corporation. 4. Any other ground that may be taken during the course of appeal proceedings. 2. Brief facts of the case are that the assessee is a Private Trust and constitutes as an AOP. The assessee e-filed its Return of Income for the A.Y. 2023-24 on 29.07.2023 in the status of an AOP v…

KAPUR FAMILY TRUST ,MUMBAI vs. I.T.O WARD 22(2)(1), MUMBAI

In the result, we confirm the order of the ld

ITA 3835/MUM/2024[2023-24]Status: DisposedITAT Mumbai30 Oct 2024AY 2023-24

Bench: Shri Narender Kumar Choudhry

For Appellant: Shri Jayesh Dadia, A.RFor Respondent: Shri G. Santosh Kumar, Sr. A.R
Section 111ASection 143(1)Section 2Section 250

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI SHRI BR BASKARAN, ACCOUNTANT MEMBER AND BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA Nos.3834 & 3835/M/2024 Assessment Years: 2022-23 & 2023-24 M/s. Kapur Family Trust, ITO Ward 22(2)(1), 8 The Cliff, Pochkhanawala Road, Piramal Chamber, Vs. Worli, Mumbai – 400012 Maharashtra – 4000 030 Maharashtra PAN: AACTS7653P (Appellant) (Respondent) Present for: Assessee by : Shri Jayesh Dadia, A.R. Revenue by : Shri G. Santosh Kumar, Sr. A.R. Date of Hearing : 17.10.2024 Date of Pronouncement : 30.10.2024 O R D E R Per : Narender Kumar Choud…

KAPUR FAMILY TRUST ,MUMBAI vs. ITO, WARD, 22(2)(1), MUMBAI

In the result, we confirm the order of the ld

ITA 3834/MUM/2024[2022-23]Status: DisposedITAT Mumbai30 Oct 2024AY 2022-23

Bench: Shri Narender Kumar Choudhry

For Appellant: Shri Jayesh Dadia, A.RFor Respondent: Shri G. Santosh Kumar, Sr. A.R
Section 111ASection 143(1)Section 2Section 250

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI SHRI BR BASKARAN, ACCOUNTANT MEMBER AND BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA Nos.3834 & 3835/M/2024 Assessment Years: 2022-23 & 2023-24 M/s. Kapur Family Trust, ITO Ward 22(2)(1), 8 The Cliff, Pochkhanawala Road, Piramal Chamber, Vs. Worli, Mumbai – 400012 Maharashtra – 4000 030 Maharashtra PAN: AACTS7653P (Appellant) (Respondent) Present for: Assessee by : Shri Jayesh Dadia, A.R. Revenue by : Shri G. Santosh Kumar, Sr. A.R. Date of Hearing : 17.10.2024 Date of Pronouncement : 30.10.2024 O R D E R Per : Narender Kumar Choud…

ARAADHYA JAIN TRUST,MUMBAI vs. INCOME TAX OFFICER, WARD-22(1)(6), MUMBAI

In the result, the appeal of the assessee is dismissed

ITA 2197/MUM/2024[2022-23]Status: DisposedITAT Mumbai07 Oct 2024AY 2022-23

Bench: Shri Prashant Maharishi, Am & Shri Anikesh Banerjee, Jm A.Y. 2022-23 Aradhya Jain Trust, Income Tax Officer, 31 Benzer Terraces, Ward 22(1)(6), Abdul Gaffar Khan,Worli, Mumbai Vs. Mumbai

Section 143(1)Section 167BSection 2(29)Section 234B

…ssessee is aggrieved and is in appeal before us. 6. The learned Authorized Representative (A.R.) categorically held that the issue is squarely covered in favour of the assessee by the decision of the Coordinate Bench in ITO vs. Tayal Sales Corporation [2003] 1 SOT 579 (Hyd.) and decision of ITAT, Hyderabad Bench in the case of Sriram Trust, Hyderabad vs. ITO in ITA No. 439/Hyd/2024 dated 19.06.2024. The learned A.R. also referred to the provisions of the Finance Act, 2022,to A Y : 2022–23 Aradhya Jain Trust Versus ITO, Mumbai substantiate the claim of the assessee that for the purpose of working out the maximum…

SRIRAM TRUST,HYDERABAD vs. INCOME TAX OFFICER, EXEMPTIONS WARD -1(4), HYDERABAD

In the result, all these appeals are is allowed

ITA 441/HYD/2024[2023-2024]Status: DisposedITAT Hyderabad18 Jun 2024AY 2023-2024

Bench: Shri K. Narasimha Chary

For Appellant: Shri EV Sri Krishna, ARFor Respondent: Shri M. Naveen Kumar, DR
Section 115ASection 143(1)Section 164Section 2

…ed AR referred to section 2(29C) read with section 164/167B of the Act and also to the provisions of the relevant Finance Act. He also placed reliance on the decision of a Co-ordinate Bench of the Tribunal in the case of ITO vs. Tayal Sales Corporation [2003] 1 SOT 579 (Hyd). Learned DR heavily relied upon the impugned order. 6. I have gone through the record in the light of the submissions made on either side. There is no dispute for all these three years the assessee Page 2 of 5 ITA Nos. 439, 440 & 441/Hyd/2024 filed the returns of income, declaring the income less than Rs. 50 lakhs. It is also not in dispu…

SRIRAM TRUST,HYDERABAD vs. INCOME TAX OFFICER, EXEMPTIONS WARD -1(4), HYDERABAD

In the result, all these appeals are is allowed

ITA 440/HYD/2024[2022-2023]Status: DisposedITAT Hyderabad18 Jun 2024AY 2022-2023

Bench: Shri K. Narasimha Chary

For Appellant: Shri EV Sri Krishna, ARFor Respondent: Shri M. Naveen Kumar, DR
Section 115ASection 143(1)Section 164Section 2

…ed AR referred to section 2(29C) read with section 164/167B of the Act and also to the provisions of the relevant Finance Act. He also placed reliance on the decision of a Co-ordinate Bench of the Tribunal in the case of ITO vs. Tayal Sales Corporation [2003] 1 SOT 579 (Hyd). Learned DR heavily relied upon the impugned order. 6. I have gone through the record in the light of the submissions made on either side. There is no dispute for all these three years the assessee Page 2 of 5 ITA Nos. 439, 440 & 441/Hyd/2024 filed the returns of income, declaring the income less than Rs. 50 lakhs. It is also not in dispu…

SRIRAM TRUST,HYDERABAD vs. INCOME TAX OFFICER, EXEMPTIONS WARD -1(4), HYDERABAD

In the result, all these appeals are is allowed

ITA 439/HYD/2024[2021-2022]Status: DisposedITAT Hyderabad18 Jun 2024AY 2021-2022

Bench: Shri K. Narasimha Chary

For Appellant: Shri EV Sri Krishna, ARFor Respondent: Shri M. Naveen Kumar, DR
Section 115ASection 143(1)Section 164Section 2

…ed AR referred to section 2(29C) read with section 164/167B of the Act and also to the provisions of the relevant Finance Act. He also placed reliance on the decision of a Co-ordinate Bench of the Tribunal in the case of ITO vs. Tayal Sales Corporation [2003] 1 SOT 579 (Hyd). Learned DR heavily relied upon the impugned order. 6. I have gone through the record in the light of the submissions made on either side. There is no dispute for all these three years the assessee Page 2 of 5 ITA Nos. 439, 440 & 441/Hyd/2024 filed the returns of income, declaring the income less than Rs. 50 lakhs. It is also not in dispu…

ITO v. Tayal Sales Corporation (1 SOT 579) — Cited in 18 Judgments | BharatTax