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“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
86
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
61
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
46
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
34
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
27
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
22
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
22
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

Pranay Mahajan Welfare Trust, Amritsar vs. Income Tax Officer- Ward 2(1), Amritsar

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

ITA 461/ASR/2024[2023-2024]Status: DisposedITAT Amritsar26 Sept 2025AY 2023-2024

Bench: Dr. M. L. Meena & Sh. Udayan Dasgupta

For Appellant: None (Adjournment application)
Section 143(1)Section 250

Bengaluru u/s 143(1) of the Act on a total income of Rs.6,58,990/- and taxing the same at maximum marginal rate (MMR). 6 I.T.A. Nos. 457 to 461/Asr/2024 Assessment Years: 2014-15 & Ors. 17. Grounds of appeal taken by the assessee in Form No. 36 are as follows ... present case, there is no dispute that the assessee is a Private Discretionary Trust and therefore should be taxed at the maximum marginal rate and he also submitted that the CPC, Bengaluru has got the power to compute the correct amount of tax and same payable by the assessee

Pranay Mahajan Welfare Trust, Amritsar vs. Income Tax Officer Ward -2(1), Amritsar

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

ITA 460/ASR/2024[2022-2023]Status: DisposedITAT Amritsar26 Sept 2025AY 2022-2023

Bench: Dr. M. L. Meena & Sh. Udayan Dasgupta

For Appellant: None (Adjournment application)
Section 143(1)Section 250

Bengaluru u/s 143(1) of the Act on a total income of Rs.6,58,990/- and taxing the same at maximum marginal rate (MMR). 6 I.T.A. Nos. 457 to 461/Asr/2024 Assessment Years: 2014-15 & Ors. 17. Grounds of appeal taken by the assessee in Form No. 36 are as follows ... present case, there is no dispute that the assessee is a Private Discretionary Trust and therefore should be taxed at the maximum marginal rate and he also submitted that the CPC, Bengaluru has got the power to compute the correct amount of tax and same payable by the assessee

Pranay Mahajan Welfare Trust, Amritsar vs. Income Tax Officer Ward 2(1), Amritsar

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

ITA 459/ASR/2024[2019-2020]Status: DisposedITAT Amritsar26 Sept 2025AY 2019-2020

Bench: Dr. M. L. Meena & Sh. Udayan Dasgupta

For Appellant: None (Adjournment application)
Section 143(1)Section 250

Bengaluru u/s 143(1) of the Act on a total income of Rs.6,58,990/- and taxing the same at maximum marginal rate (MMR). 6 I.T.A. Nos. 457 to 461/Asr/2024 Assessment Years: 2014-15 & Ors. 17. Grounds of appeal taken by the assessee in Form No. 36 are as follows ... present case, there is no dispute that the assessee is a Private Discretionary Trust and therefore should be taxed at the maximum marginal rate and he also submitted that the CPC, Bengaluru has got the power to compute the correct amount of tax and same payable by the assessee

Pranay Mahajan Welfare Trust, Amritsar vs. Income Tax Officer Ward-2(1), Amritsar

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

ITA 458/ASR/2024[2015-2016]Status: DisposedITAT Amritsar26 Sept 2025AY 2015-2016

Bench: Dr. M. L. Meena & Sh. Udayan Dasgupta

For Appellant: None (Adjournment application)
Section 143(1)Section 250

Bengaluru u/s 143(1) of the Act on a total income of Rs.6,58,990/- and taxing the same at maximum marginal rate (MMR). 6 I.T.A. Nos. 457 to 461/Asr/2024 Assessment Years: 2014-15 & Ors. 17. Grounds of appeal taken by the assessee in Form No. 36 are as follows ... present case, there is no dispute that the assessee is a Private Discretionary Trust and therefore should be taxed at the maximum marginal rate and he also submitted that the CPC, Bengaluru has got the power to compute the correct amount of tax and same payable by the assessee

Pranay Mahajan Welfare Trust, Medical Enclave vs. Income Tax Officer Ward -2(1), Amritsar

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

ITA 457/ASR/2024[2014-2015]Status: DisposedITAT Amritsar26 Sept 2025AY 2014-2015

Bench: Dr. M. L. Meena & Sh. Udayan Dasgupta

For Appellant: None (Adjournment application)
Section 143(1)Section 250

Bengaluru u/s 143(1) of the Act on a total income of Rs.6,58,990/- and taxing the same at maximum marginal rate (MMR). 6 I.T.A. Nos. 457 to 461/Asr/2024 Assessment Years: 2014-15 & Ors. 17. Grounds of appeal taken by the assessee in Form No. 36 are as follows ... present case, there is no dispute that the assessee is a Private Discretionary Trust and therefore should be taxed at the maximum marginal rate and he also submitted that the CPC, Bengaluru has got the power to compute the correct amount of tax and same payable by the assessee

Deputy Commissioner of Income Tax, Circle-1(1), New Delhi, Delhi vs. Anand Nvh Products Pvt Ltd, Delhi

ITA 3612/DEL/2024[2016-17]Status: DisposedITAT Delhi26 Sept 2025AY 2016-17

Bench: Shri Yogesh Kumar U.S. & Shri Avdhesh Kumar Mishra

Section 35

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI

Whole Sale Cloth Merchant Association, Kota vs. Deputy Commissioner of Income Tax Central Circle Kota, Kota

ITA 962/JPR/2024[2015-2016]Status: DisposedITAT Jaipur24 Sept 2025AY 2015-2016
For Respondent: Mrs. Anita Rinesh, JCIT-DR
Section 11Section 11(2)Section 143(3)Section 147Section 40

disallowed the income of Rs.33,50,772/- (33,45,494/- +5,278/-) and also taxed the same @ Maximum Marginal Rate U/s 164(2). The Id. AO has alleged that the assessee trust is doing business activities in and not complying statutory provisions of the Act. Thus the AO has completed ... filing ITR and get books of accounts audited. Therefore, the income of Rs.33,50.772/- (33,45,494/- + 5.278/-) will be taxed Maximum Marginal Rate u/s 164(2) as the assesse trust is doing business activities in India but not complying statutory provision of the Act.. The AO has denied

Whole Sale Cloth Merchant Association, Kota vs. Deputy Commissioner of Income Tax Central Circle Kota, Kota

In the result, the appeal of the assessee is allowed in ITA No

ITA 961/JPR/2024[2014-2015]Status: DisposedITAT Jaipur24 Sept 2025AY 2014-2015
For Appellant: Shri Siddharth Ranka, Adv
Section 11Section 11(2)Section 143(3)Section 147Section 40

disallowed the income of Rs. 33,50,772/- (33,45,494/- +5,278/-) and also taxed the same @ Maximum Marginal Rate U/s 164(2). The Id. AO has alleged that the assessee trust is doing business activities in and not complying statutory provisions of the Act. Thus ... filing ITR and get books of accounts audited. Therefore, the income of Rs.33,50.772/- (33,45,494/- + 5.278/-) will be taxed Maximum Marginal Rate u/s 164(2) as the assesse trust is doing business activities in India but not complying statutory provision of the Act.. The AO has denied

DCIT Akola Circle, Akola vs. The Akola Janata Commercial Co-Operative Bank Ltd., Akola

In the result, Revenue’s appeal is dismissed

ITA 189/NAG/2025[2020-21]Status: DisposedITAT Nagpur22 Sept 2025AY 2020-21

Bench: Shri Narender Kumar Choudhry & Shri K.M. Roy, Accountant, Member

For Appellant: Shri S.G. GandhiFor Respondent: Shri Pankaj Kumar
Section 143(1)Section 143(3)Section 147Section 154

accept the contention of the Revenue that, irrespective of the nature or quantum of income, as per the definition of maximum marginal rate u/s.2(29C) of the Act, surcharge has to be computed at the highest rate of 37% applicable to the highest income bracket of Rs.5 crores and above ... trusts are concerned. In our view, such an interpretation would lead to absurdity, hence, is unworkable. In our view, once the definition of ‘maximum marginal rate’ refers to the rate of income-tax and surcharge provided under the Finance Act of the relevant year, then the rates of incometax

Srijan Charitable Trust, Kolkata vs. ITO(Exemption) Ward 1(3), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1392/KOL/2025[2011-2012]Status: DisposedITAT Kolkata15 Sept 2025AY 2011-2012

Bench: Shri Rajesh Kumar, Am & Shripradip Kumar Choubey, Jm Srijan Charitable Trust, Income Tax Officer 36/1 A, Srijan House, Elgin (Exemption) Road, Bhawanipur, Vs. Ward 1(3), Kolkata Kolkata-700020 (Appellant) (Respondent) Pan No. Aahts4903K Assessee By : Shri S.K. Tulsiyan, Ar Revenue By : Shri Sanat Kumar Raha, Dr Date Of Hearing: 01.09.2025 Date Of Pronouncement: 15.09.2025

For Appellant: Shri S.K. Tulsiyan, ARFor Respondent: Shri Sanat Kumar Raha, DR
Section 11(1)(d)Section 12ASection 133ASection 143(1)Section 143(3)Section 147Section 148Section 183

added to the income of the assessee by disallowing the exemption u/s 11(1)(d) of the Act and brought to tax at maximum marginal rate of tax. The ld. AO also noted that the cancellation of registration u/s 12A of the act was under process before

Lipi Jain Family Trust, Ashoknagar vs. The Income Tax Officer, Exemption Ward Gwalior, Gwalior

In the result, the appeal of the assessee is allowed

ITA 227/AGR/2025[2015-16]Status: DisposedITAT Agra12 Sept 2025AY 2015-16

Bench: Shri M. Balaganesh(Through Virtual Hearing) Lipi Jain Family Trust, Vs. Ito (Exemption), Ward No. 18, Subhash Ward Gwalior Ganj Ashok Nagar, Ashok Nagar, Mp Pan: Aabtl3606J Assessee By : Shri Subhash Chand Jain, Ca Revenue By: Shri Anil Kumar, Sr. Dr Date Of Hearing 20/08/2025 Date Of Pronouncement 12/09/2025

For Appellant: Shri Subhash Chand Jain, CAFor Respondent: Shri Anil Kumar, Sr. DR
Section 139(5)Section 143(1)

wrongly calculated to the tax liability Rs. 115670/- in the intimation u/s 143(1) of the assessee trust by confirming to tax at Maximum Marginal rate instead of Normal Rate because appellant trust is only trust which was created through single will of Late Baboolal Jain and beneficiaries ... filed in ITR-7 instead of ITR 5 by inadvertence. The return was processed by the ld CPC by taxing the income at maximum marginal rate without considering the nature of trust and fact of non taxability of beneficiary. 4. The sole issue involved in this appeal is with respect

Jasmina Trust, New Delhi vs. Deputy Commissioner of Income Tax, New Delhi

The appeals are allowed with event to follow accordingly

ITA 2211/DEL/2025[2023-24]Status: DisposedITAT Delhi12 Sept 2025AY 2023-24

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharma

For Appellant: Smt. Vasanti Patel, AdvocateFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 11Section 12ASection 143(1)Section 167(1)Section 167BSection 234C

been raise whether the provisions of section 167 A of the Income-tax Act which provide for charging of tax at the maximum marginal rate on the total income of an association of persons where the individual shares of members in the income of such association are indeterminate or unknown ... payable in such cases at the rate ordinarily applicable to the total income of an association of persons and not at the maximum marginal rate". 7.2.8. In view of the above, the appeal of the appellant is allowed and AO is directed to tax the appellant's income

Jasmina Trust, New Delhi vs. Deputy Commissioner of Income Tax, New Delhi

ITA 2210/DEL/2025[2022-23]Status: DisposedITAT Delhi12 Sept 2025AY 2022-23

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharma

For Appellant: Smt. Vasanti Patel, AdvocateFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 11Section 12ASection 143(1)Section 167(1)Section 167BSection 234C

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: A : NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI

Jasmina Trust, New Delhi vs. Deputy Commissioner of Income Tax, New Delhi

ITA 2209/DEL/2025[2021-22]Status: DisposedITAT Delhi12 Sept 2025AY 2021-22

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharma

For Appellant: Smt. Vasanti Patel, AdvocateFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 11Section 12ASection 143(1)Section 167(1)Section 167BSection 234C

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: A : NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI

Mall of Jaipur Owners Welfare Association, Jaipur vs. DCIT, Circle-6, 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

benefit of the basic exemption limit to the assessee, while processing the return of income. The tax liability has been computed at the Maximum Marginal Rate (“MMR”) without allowing the basic exemption as claimed by the assessee. The action of 2 Mall of Jaipur Owners Welfare Association, Jaipur ... interest income earned from fixed deposits. Assessee, at the time of filing the return of income, computed its tax liability at the maximum marginal rate of 30%. The AO(CPC) processed the return under Section 143(1), accepting the returned income but levied surcharge at 25% on the total

Dy. Commissioner of Income Tax, Dehradun vs. Halliburton Offshore Services Inc., Maharashtra

ITA 188/DDN/2024[2018-19]Status: DisposedITAT Dehradun10 Sept 2025AY 2018-19

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 244ASection 44BSection 9(1)(i)Section 9(1)(vi)

ITA No. 187, 175& 188/DDN/2024 DCIT Vs. Halliburton Offshore Services Inc. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI [ DELHI BENCH

Dy Commissioner of Income Tax, Dehradun vs. Halliburton Offshore Services Inc, Maharastra

ITA 187/DDN/2024[2017-18]Status: DisposedITAT Dehradun10 Sept 2025AY 2017-18

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 244ASection 44BSection 9(1)(i)Section 9(1)(vi)

ITA No. 187, 175& 188/DDN/2024 DCIT Vs. Halliburton Offshore Services Inc. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI [ DELHI BENCH

Dy. Commississioner of Income Tax, Dehradun vs. Halliburton Off Shore Services Inc, Dehradun

ITA 175/DDN/2024[2016-17]Status: DisposedITAT Dehradun10 Sept 2025AY 2016-17
Section 244ASection 44BSection 9(1)(i)Section 9(1)(vi)

ITA No. 187, 175& 188/DDN/2024 DCIT Vs. Halliburton Offshore Services Inc. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI [ DELHI BENCH

Sakshi Roongta Benefit Trust, Rajeev Gandhi Nagar vs. ITO Ward 1(2), Kota

In the result, the appeal in ITA no

ITA 385/JPR/2025[2016-17]Status: DisposedITAT Jaipur08 Sept 2025AY 2016-17

Bench: Moving Towards The Facts Of The Case We Would Like To Mention That The Assessee Has Assailed The Appeal In Ita No.

For Appellant: Shri Swapnil Agarwal, CAFor Respondent: Shri Gautam Singh Choudhary, JCIT
Section 143(1)Section 154

purview of the provisions of the said section. The appellant filed the instant appeal stating that the AO has charged the taxes at maximum marginal rate. Since, the claim of the appellant does not pertain to the issue of the order against which the instant appeal has been filed ... purview of the provisions of the said section. The appellant filed the instant appeal stating that the AO has charged the taxes at maximum marginal rate. Since, the claim of the appellant does not pertain to the issue of the order against which the instant appeal has been filed

Samiksha Roongta Benefit Trust, Rajeev Gandhi Nagar vs. ITO, ITO Ward, Kota

In the result, the appeal in ITA no

ITA 384/JPR/2025[2016-17]Status: DisposedITAT Jaipur08 Sept 2025AY 2016-17

Bench: Moving Towards The Facts Of The Case We Would Like To Mention That The Assessee Has Assailed The Appeal In Ita No.

For Appellant: Shri Swapnil Agarwal, CAFor Respondent: Shri Gautam Singh Choudhary, JCIT
Section 143(1)Section 154

purview of the provisions of the said section. The appellant filed the instant appeal stating that the AO has charged the taxes at maximum marginal rate. Since, the claim of the appellant does not pertain to the issue of the order against which the instant appeal has been filed ... purview of the provisions of the said section. The appellant filed the instant appeal stating that the AO has charged the taxes at maximum marginal rate. Since, the claim of the appellant does not pertain to the issue of the order against which the instant appeal has been filed