“maximum marginal rate”

Chapter I - PreliminarySection 2 - DefinitionsSection 2(29C) / ITR-6 Schedule 115TD587 judgments

The decision most relied on for maximum marginal rate is 1. Father Mullers Charitable Institutions 363 IT 230 (Kar.) 2. DIT(E) v. Sheth Mafatlal Gagalbhai Foundation Trust (249 ITR 533), cited in 108 judgments on BharatTax.

Leading authorities on maximum marginal rate

1. Father Mullers Charitable Institutions 363 IT 230 (Kar.) 2. DIT(E) v. Sheth Mafatlal Gagalbhai Foundation Trust

249 ITR 533 · 2001 · High Court

108

citing judgments

Income of a trust that is taxable at the maximum marginal rate should be taxed accordingly, while other income is eligible for exemption under Section 11 of the Income-tax Act.

DIT v. Bharat Diamond Bourse

259 ITR 280 · 2003 · Supreme Court

citing judgments

Violation of investment mandates under Section 13(1)(d) of the Income Tax Act, 1961, for a charitable trust results in the complete denial of exemption under Section 11 of the Act.

Trust (249 ITR 533) (Bom.) 3. CIT vs. Red Rose School (163 Taxman 19 (All.) 4. DIT(E) v. Alarippu (

172 ITR 698 · 1988 · High Court

citing judgments

Income received by a trust from sources like extra fees can be taxed at the maximum marginal rate, while other income remains eligible for exemption under Section 11 of the Income Tax Act.

CWT v. Trustees of H.E.H. Nizam’s

108 ITR 555 · 1977 · Supreme Court

citing judgments

Where the shares of beneficiaries in a trust are determinate, trustees must be assessed separately for each beneficiary's share, treating each beneficiary as an individual. The income is then taxed at the marginal rate applicable to individuals, not at the maximum rate for an association of persons.

CIT v. Working Women’s Forum

365 ITR 353 · 2014 · High Court

citing judgments

When an exemption is denied under Section 13(1)(c) or (d), the denial of exemption applies only to the portion of income that violates these provisions, not the entire income.

CIT v. V.S. Dempo & Co. Pvt. Ltd.

336 ITR 209 · 2011 · High Court

citing judgments

Disallowance under Section 40A(2)(b) is not maintainable when both the payer and payee are assessed at the maximum marginal rate, as it results in a revenue-neutral situation.

Kar.) 2. DIT(E) vs. Sheth Mafatlal Gagalbhai Foundation Trust (249 ITR 533) (Bom.) 3. CIT v. Red Rose School (

224 ITR 358 · High Court

citing judgments

Income received by a trust that is considered 'extra fees' is taxable at the maximum marginal rate, while other income of the trust is eligible for exemption under Section 11.

Araadhya Jain Trust v. ITO

173 Taxmann.com 343 · 2025 · ITAT

citing judgments

The definition of maximum marginal rate under section 2(29C) can be interpreted to determine the applicable surcharge rates, particularly for income including dividends, as per the First Schedule to the Finance Act. This affects how surcharge is calculated on taxable income.

Judgments citing maximum marginal rate

DCIT, Central Circle1(2), Ahmedabad vs. Parul Arogya Seva Mandal Trust, Ahmedabad

Appeals are allowed

ITA 1018/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2016-17

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

For Respondent: Shri Sudhendu Das, CIT-DR

Section 10Section 12ASection 133ASection 80G(5)

part of the relevant income' is not exempt under Section 11 or 12, tax shall be charged on the relevant income at the maximum marginal rate. The use of the expression whole or any part of the relevant income in Section 164, lends a meaning that denial of entire exemption ... denial of exemptions under Sections 11 and 12 of the Act, the income of the assessee trust should be taxed at the maximum marginal rate as specified under Section 164(2) of the Act. This recalculation should exclude any benefits of exemptions previously claimed under Sections

DCIT Corporate Circle 1 (2), Chennai vs. M/S Consolidated Construction Consortium Ltd, Chennai

In the result, aforesaid grounds of appeal filed by the Revenue stands dismissed

ITA 2799/CHNY/2019[2011-12]Status: DisposedITAT Chennai10 Jul 2024AY 2011-12

Bench: Shri Aby T. Varkey & Shri S.R.Raghunathaआयकर अपील सं./Ita No.2799/Chny/2019 िनधा"रण वष"/Assessment Year: 2011-12 V. The Dcit, M/S. Consolidated Corporate Circle-1(2), Construction Chennai. Consortium Ltd., No.3, Ii Link Street, Mylapore, Chennai-600 004. [Pan: Aaacc 4214 B] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri A. Sasikumar, CITFor Respondent: Shri S. Sridhar, Advocate

Section 10Section 37(1)Section 40A(2)(b)

From the point of view of Samruddhi Holdings, the Id. AR has submitted that the same have been subjected to taxation at Maximum Marginal Rate on the entire sums received from the company. The AO even though made an effort to see the receipt side in the hands of Samruddhi ... fact that the amount paid by the appellant company after TDS has been entirely offered to taxation by the recipients at Maximum Marginal Rate , we cannot simply brush it aside as a tailor-made arrangement. The addition made by the AO cannot survive for the simple reason that it will

Care Foundation Village, Delhi vs. Income Tax Officer Ward Exemption 1(3), Delhi

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

ITA 3746/DEL/2023[2014-15]Status: DisposedITAT Delhi05 Jul 2024AY 2014-15

Bench: Nfac, Delhi.

Section 11Section 11(1)Section 12ASection 12A(2)Section 143(1)Section 154Section 57

case and without prejudice to the Ground No.1, the Ld. CIT(A) was not justified in levying the tax at the maximum marginal rate ignoring the provisions of sec 164(2) of IT Act as per which the appellant trust should have been subjected ... affect the interpretation of Section 57 (iii). e) With regard to Ground No.3 the rectification intimation is challenged on the ground that the maximum marginal rate of tax has been charged on the gross income of the appellant by applying sec 1678B of IT Act. This action

Iei Shareholding (Personal Development -1987) Trust, Mumbai vs. Deputy Director of Income Tax, CPC, Bengaluru

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

ITA 2222/MUM/2024[2022-23]Status: DisposedITAT Mumbai03 Jul 2024AY 2022-23

Bench: Shri Pavan Kumar Gadale & Shri Omkareshwar Chidaravs. Ito Ward 22(2)(1), Iei Shareholding(Personal Piramal Chambers, Development -1987) Trust, Lalbaugh, Ion House, 4Th Floor, Mumbai-400011. Dr. E Moses Road, Near Famous Studio, Mahalaxmi, Mumbai-400011. Pan/Gir No. Aaati0093D (अपीलाथ"/Appellant) (""यथ"/Respondent)

Section 164(1)Section 167B

case, the Ld Assessing Officer erred in facts as well as in law by determining the tax liability of the Appellant at Maximum Marginal Rate (MMR). 3. That on the facts and in the circumstances of the case, the Ld Assessing Officer has erred in facts as well ... return of income was processed treating the assesse trust as “ AOP” and the tax liability was computed at Maximum marginal rate u/sec 167B of the Act and the order U/sec143(1) of the Act was passed on 16-03-2023 assessing the total income of Rs.2

Ujjwal Business Trust, Mumbai vs. Income Tax CPC, Bangaluru

In the result, appeal of the assessee is allowed

ITA 602/MUM/2024[2022-23]Status: DisposedITAT Mumbai28 Jun 2024AY 2022-23

Bench: SHRI AMIT SHUKLA (Judicial Member)

Section 111ASection 112ASection 115BSection 139(1)Section 143(1)Section 164Section 2Section 234B

brief facts are that assessee is irrevocable private discretionary Trust. Accordingly, the tax liability of the assessee trust was to be computed at maximum marginal rate in accordance with the provision of Section 164 of the Act. The assessee filed its return of income u/s.139(1) on 29/07/2022 declaring total ... Irrevocable Private Discretionary Trust formed under the Indian Trust Act, 1882. The tax liability of the Appellant is computed at the maximum marginal rate in accordance with the provisions of Section 164 of the Income Tax Act, 1961. 5.5 The Income Tax Act defines maximum marginal rate as rate

The Everest English Education Extension Society, Tilak Nagar, Dewas (M.P.) vs. Income Tax Officer, Exemption Ward, Ujjain

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 552/IND/2023[2016-2017]Status: DisposedITAT Indore25 Jun 2024AY 2016-2017

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanithe Everest English Education Ito Extension Society Ujjain 83 Bhagat Singh Marg Meera Vs. Bawdi, Dewas (Appellant / Assessee) (Respondent/ Revenue) Pan: Aabtt4223B Assessee By Shri Manoj Madnis, Ar Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 24.06.2024 Date Of Pronouncement 25.06.2024

hereby disallowed and no exemption u/s 11 is allowed on this amount. Amount of Rs. 46,53,442/- is being taxed at Maximum Marginal Rate as per provisions of section 164(2) of Income Tax Act, 1961. Penalty proceedings u/s 271(1)(c) of Income Tax Act being Initiated separately

Assistant Commissioner of Income Tax, Exemptions, Circle-1, Bengaluru vs. K J Foundation, Bengaluru

In the result, the appeal filed by the Revenue is dismissed

ITA 1105/BANG/2023[2017-18]Status: DisposedITAT Bangalore19 Jun 2024AY 2017-18

Bench: Shri Waseem Ahmed & Shri Soundararajan K.Assistant Commissionerof K.J. Foundation Income Tax 58/1 Thubarahalli Room No. 606, 6Th Floor Behind Sriram, Samruthi Vs. Unity Bldg. Annex Apartments, Whitefield Road P. Kalinga Rao Road Karnataka 500067 Karnataka 560027 Pan – Aabtk1178N (Appellant) (Respondent) Assessee By: Shri Satish R. Mody, Advocate Revenue By: Shri Vilas V. Shinde, Cit-Dr Date Of Hearing: 28.05.2024 Date Of Pronouncement: 19.06.2024 O R D E R Per: Soundararajan K., J.M. This Is An Appeal Filed By The Revenue Against The Order Passed By The National Faceless Appeal Centre, Delhi (‘Cit(A)’) Under Section 250 Of The Income Tax Act, 1961 (The Act) In Respect Of The Assessment Year (Ay) 2017-18. 2. The Revenue Has Raised The Following Grounds Of Appeal: - “1 The Order Of Learned Cit(A) Is Opposed To Facts & Circumstances Of The Case 2 The Cit(A) Has Erred In Observing That During The F.Y 2016- 17, The Assessee Had Paid Lease Rent Of Rs.9,58,28,710/-Only To Eduspark International Pvt. Ltd. Which Was A Specified Person U/S.13(3) Of The Income Tax Act, 1961 & That Such Payment

For Appellant: Shri Satish R. Mody, AdvocateFor Respondent: Shri Vilas V. Shinde, CIT-DR

Section 13Section 13(3)Section 250

ground that Eduspark International Pvt Ltd. had duly accounted the transaction in its books of accounts and taxed at maximum marginal rate. It is not stipulated in the Act that an undue benefit conferred by the assessee trust to a specified person 3 K.J. Foundation would ... after discussing several case laws the A.O has denied the exemption u/s.11 and determined taxable income or Rs. 6,02,10,941/- at maximum marginal rate u/s 13(1)(c) of the Act. Penalty proceedings u/s. 270A has also been initiated. 5.3 The appellant has filed appeal against the said

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

incorrect to hold that the rate of surcharge should also be levied at maximum rate, when the tax is leviable at maximum marginal rate. 5. Learned AR referred to section 2(29C) read with section 164/167B of the Act and also to the provisions of the relevant Finance ... 441/Hyd/2024 filed the returns of income, declaring the income less than Rs. 50 lakhs. It is also not in dispute that the maximum marginal rate is applicable to the assessee. Only question that needs resolution is whether surcharge is applicable to the case of the assessee in terms

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

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

DCIT, Central Circle-1, Mangaluru vs. Usk Construction Company Dp, Udupi

In the result, the appeal of the revenue is partly allowed

ITA 647/BANG/2023[2019]Status: DisposedITAT Bangalore12 Jun 2024

Bench: Shri Laxmi Prasad Sahu & Shri Soundararajan K., Judciial Member Assessment Year : 2019-20

For Appellant: Shri Thamba Mahendra, Jt.CIT(DR), BengaluruFor Respondent: Shri Shiva Prasad Reddy, ITP

Section 132Section 143(1)Section 44A

have got the benefit of minimum threshold tax limit and tax slab rates i.e., 10%, 20% & 30%. The assessee is covered under the maximum marginal rate of tax. 17. We also note from the written submissions of the assessee filed before the CIT(Appeals) that the turnover of the assessee

Bal Bhavan School, Bhopal vs. DCIT Exemption, Bhopal

Appeal is allowed as mentioned above

ITA 321/IND/2023[2014-15]Status: DisposedITAT Indore10 Jun 2024AY 2014-15

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year: 2014-15 Bal Bhavan School, Dcit (Exemption), 1, Shyamla Hills, Bhopal बनाम/ Bhopal Vs. (Assessee/Appellant) (Revenue/Respondent) Pan: Aaaab3678G Assessee By Ms. Nisha Lahoti, Ca Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 15.05.2024 Date Of Pronouncement 10.06.2024

Section 11Section 12ASection 13(1)(c)Section 13(3)Section 143(3)

r.w.s. 13(2). Accordingly, the AO made an addition of excessive payment of Rs. 12,04,820/- and also applied maximum marginal rate. 8. During first-appeal, the assessee submitted a valuation-certificate to show that the ‘market value’ of the land taken by assessee on rent ... terms of section 13(1)(c)/13(2) and made an addition of entire payment of Rs. 41,72,105/- and also applied maximum marginal rate. 15. During first-appeal, the CIT(A) confirmed AO’s observations and upheld AO’s order. 16. Before us, Ld. AR for assessee made

Janaki Thangam Educationnel Trust, Chennai vs. ITO (Exemptions) Ward 3, Chennai

In the result, the appeals filed by the assessee are allowed for statistical purposes

ITA 1630/CHNY/2023[2017-18]Status: DisposedITAT Chennai10 Jun 2024AY 2017-18

Bench: Shri Mahavir Singhand Shri S.R. Raghunathaआयकर अपील सं./Ita Nos.: 1617 & 1630/Chny/2023 िनधा"रण वष"/Assessment Year: 2017-18 M/S. Janaki Thangam The Income Tax Officer Educational Trust, Vs. (Exemptions), Plot No.9, Sanathana Srinivasa Ward 3, Perumal Koil Street, Chennai. Tnhb Special Scheme, Mogappair West, Chennai – 600 037. Pan: Aaatj 5734C (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri G. Seetharaman, Ca Shri B. Gowthaman, Ca ""यथ" क" ओर से/Respondent By : Shri N. Sanjay Gandhi, Jcit सुनवाई क" तारीख/Date Of Hearing : 10.06.2024 घोषणा क" तारीख/Date Of Pronouncement : 10.06.2024

For Appellant: Shri G. Seetharaman, CAFor Respondent: Shri N. Sanjay Gandhi, JCIT

Section 115Section 143(3)Section 147

taxing the amount of Rs.2,20,00,000/- in violation of section 11(1) of the Act and that to at maximum marginal rate u/s.164(2) of the Act. 7. For this, the ld.AR for the assessee stated that the order of CIT(A)-NFAC on the issue of eligibility ... exemption u/s.11 of the Act and assessing the income of Rs.2.20 crores at the maximum marginal rate has not adjudicated by a speaking order and not allowing proper opportunity of being heard except one notice dated 29.08.2022. When ld.AR was pointed out that the CIT(A)-NFAC has issued many

Janaki Thangam Educationnel Trust, Chennai vs. ITO (Exemptions) Ward-3, Chenai, Chennai

In the result, the appeals filed by the assessee are allowed for statistical purposes

ITA 1617/CHNY/2023[2017-18]Status: DisposedITAT Chennai10 Jun 2024AY 2017-18

For Appellant: Shri G. Seetharaman, CAFor Respondent: Shri N. Sanjay Gandhi, JCIT

Section 115Section 143(3)Section 147

Arcil Retail Loan Portfolio 001 J Trust, Mumbai vs. The Income Tax Officer-Circle 21(1)(2), Mumbai

In the result, appeals by the Revenue, being ITA No

ITA 4199/MUM/2023[2016-17]Status: DisposedITAT Mumbai07 Jun 2024AY 2016-17

Bench: Shri Narendra Kumar Billaiya & Shri Sandeep Singh Karhail

For Appellant: Shri Jeet KamdarFor Respondent: Shri Ajay Chandra

Section 143(3)Section 250Section 3Section 7

fund should be taxed in respect of the income received on behalf of the beneficiaries at the maximum marginal rate.” 9.“On the facts and the in the circumstances of the case and in law, the Ld, CT(A) has erred in considering that the assessee trust, setup and functioning

Income Tax Officer Ward-22(1)(6), Mumbai vs. Arcil Asset Reconstruction Fund II Trust, Mumbai

In the result, appeals by the Revenue, being ITA No

ITA 3050/MUM/2023[2016-17]Status: DisposedITAT Mumbai07 Jun 2024AY 2016-17

Bench: Shri Narendra Kumar Billaiya & Shri Sandeep Singh Karhail

For Appellant: Shri Jeet KamdarFor Respondent: Shri Ajay Chandra

Section 143(3)Section 250Section 3Section 7

Income Tax Officer Ward 22(1)(6), Mumbai vs. Arcil Shalimar Wires Industries Limited II Trust, Mumbai

ITA 2909/MUM/2023[2016-17]Status: DisposedITAT Mumbai07 Jun 2024AY 2016-17

Bench: Shri Narendra Kumar Billaiya & Shri Sandeep Singh Karhail

For Appellant: Shri Jeet KamdarFor Respondent: Shri Ajay Chandra

Section 143(3)Section 250Section 3Section 7

fund should be taxed in respect of the income received on behalf of the beneficiaries at the maximum marginal rate.” 9."On the facts and the in the circumstances of the case and in law, the Ld, CT(A) has erred in considering that the assessee trust, setup and functioning

Om Kothari Foundation, Jaipur, Rajasthan vs. ITO, (Exemption) Ward-1, Jaipur, Rajasthan

In the result, the appeals of the assessee in ITA No

ITA 57/JPR/2024[2009-10]Status: DisposedITAT Jaipur04 Jun 2024AY 2009-10

Bench: SHRI SANDEEP GOSAIN (Judicial Member), DR MITHA LAL MEENA (Accountant Member)

For Appellant: Shri Anish Maheshwari, CAFor Respondent: Shri A.S. Nehra, Addl.CIT

Section 10Section 11Section 12ASection 13(1)Section 13(1)(d)Section 143(3)Section 147Section 164(2)

exemption of the Trust shall not go, and only the income from said investiment should be made llable for charging tax at the maximum marginal rate. The Lud. Counsel placed reliance on the decision of the Tribunal in the case of M/s Santoba Durlabhji ... section (1) of section 13, tax shall be charged on the relevant income or part of relevant income at the maximum marginal rate.] The above section provides that as such investment or deposit were made in violation of section 13(1)(d) or 11(5), the only that part

Savita Gouri Malani Grand Children Trust, Kolkata vs. ITO, Ward-31(4), Kolkata.

In the result, both the appeals filed by the assessee are allowed

ITA 1370/KOL/2023[2013-14]Status: DisposedITAT Kolkata30 May 2024AY 2013-14

Bench: Dr. Manish Borad & Pradip Kumar Choubey

Section 154Section 160Section 164(1)Section 250

determined at normal rates. The CPC while processing the return of income adopted the tax liability at Rs. 1,38,658/- at the maximum marginal rates without changing the total income. Assessee filed a rectification petition u/s 154 of the Act and requested to determine ... conjunction with Section 160(iv) of the Act. The Assessing Officer (in short ld. 'AO') rejected the petition confirming the tax at maximum marginal rates in short MMR. Being aggrieved, the assessee preferred appeal before ld. CIT(A) but wherein also assessee failed in getting relief, as a result

Savita Gouri Malani Grand Children Trust, Kolkata vs. ITO, Ward-32(4), Kolkata

In the result, both the appeals filed by the assessee are allowed

ITA 1369/KOL/2023[2013-14]Status: DisposedITAT Kolkata30 May 2024AY 2013-14

Bench: Dr. Manish Borad & Pradip Kumar Choubey

Section 154Section 160Section 164(1)Section 250