“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

Anil Gala Navneet Trust, Mumbai vs. Income Tax Officer Ward 22(1)(6), Mumbai

In the result, appeal of the assessee is allowed

ITA 3010/MUM/2025[2023-24]Status: DisposedITAT Mumbai31 Jul 2025AY 2023-24

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2023-24 Anil Gala Navneet Trust Income Tax Officer, Navneet Bhavan, Ward 22(1)(6), Bhavani Shankar Road, Mumbai Vs. Nr Shardarshram Society Dadar (West), Mumbai - 400028 (Pan : Aadta5826D) (Appellant) (Respondent) Present For: Assessee : Shri Sanjay Parikh, Ca Revenue : Shri Aditya M. Rai. Sr. Dr

For Appellant: Shri Sanjay Parikh, CAFor Respondent: Shri Aditya M. Rai. Sr. DR

Section 143(1)Section 164Section 234Section 234C

assessee is an irrevocable private discretionary trust formed under the Indian Trust Act, 1882. Tax liability of the assessee is computed at the maximum marginal rate in accordance with the provisions of section 164 of the Act. Return of income was filed on 18.07.2023, reporting total income at Rs.1 ... crore/2 crores/5 crores, as the case may be. In the case of the assessee, the surcharge rate to be considered for calculation of maximum marginal rate is 15% as the total income does not exceed Rs.2 crores. Surcharge at the rate of 37% is applicable only when income exceeds Rs.5

Estate of Nalini Manilal, Mumbai vs. ITO Ward 20(1)(1), Mumbai

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

ITA 2412/MUM/2025[2024-25]Status: DisposedITAT Mumbai31 Jul 2025AY 2024-25

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2024-25 Estate Of Nalini Manilal, Ito 20(1)(1), 57, Naiman Bhavan, Vinay Shah Piramal Chambers, Vs. Marg, Nariman Point, S.O. Mumbai-400012. Mumbai-400021. Pan No. Aaaae 0475 E Appellant Respondent

For Appellant: Mr. Asif Karmali, Sr. DRFor Respondent: Mr. Bhupendra Shah, CA

Section 168Section 168(1)Section 168(1)(b)Section 168(2)

Normal Rate of Tax and not the Tax applicable to an AOP is the Normal Rate of Tax and not the Maximum Marginal Rate (MMR) of Tax. Maximum Marginal Rate (MMR) of Tax. b) Overlooking the fact that the executors of the deceased are b) Overlooking the fact that ... applying the maximum marginal (CPC) computed the tax liability by applying the maximum marginal (CPC) computed the tax liability by applying the maximum marginal rate (MMR), on the ground that the assessee was assessed in the rate (MMR), on the ground that the assessee was assessed in the rate

Madras Port and Dock Educational Trust Higher Sec. School, Chennai vs. ITO, Exemptions Ward-2, Chennai

In the result both the appeals of the assessee for the A

ITA 938/CHNY/2025[2022-23]Status: DisposedITAT Chennai30 Jul 2025AY 2022-23

Bench: Shri George George K & Shri S.R. Raghunathaआयकरअपीलसं./Ita Nos.:937 & 938/Chny/2025 धनि््रणवर्/ Assessment Years: 2021-22 & 2022-23 Chennai Port & Dock Educational Ito, Trust Higher Secondary School Vs. Exemptions Ward-2, (Formerly Known As Madras Port & Chennai – 600 034. Dock Educational Trust Higher Secondary School), Mdlb Housing Colony, Tondiarpet, Chennai – 600 081. [Pan:Aaaam-8192-L] (अपील्थ्/Appellant) (प्थ्/Respondent) अपील्थ्कीओरसे/Appellant By : Shri. Suraj Nahar, C.A. प्थ्कीओरसे/Respondent By : Shri. Kumar Chandan, J.C.I.T. सुनव््कीत्रीख/Date Of Hearing : 17.06.2025 घोरण्कीत्रीख/Date Of Pronouncement : 30.07.2025

For Appellant: Shri. Suraj Nahar, C.AFor Respondent: Shri. Kumar Chandan, J.C.I.T

Section 11Section 12ASection 143(1)Section 234BSection 250

above, the Commissioner of Income Tax (Appeals) failed to appreciate that the Deputy Director of Income Tax erred in taxing the appellant at Maximum Marginal Rate as against the slab rates. Levy of interest u/s.234B and 234C 7. For that the appellant objects to the levy of interest under sections ... date prescribed under the Act read with rule 12A(1)(b), thereby assessing the entire gross receipts of Rs.4,23,28,596/- at maximum marginal rate without considering expenditure of Rs.4,20,85,504/- incurred during the previous year relevant to assessment year 2021-22. 6. Aggrieved, the assessee filed

Madras Port and Dock Educational Trust Higher Secondary School, Chennai vs. ITO, Exemption Ward-2, Chennai

In the result both the appeals of the assessee for the A

ITA 937/CHNY/2025[2021-22]Status: DisposedITAT Chennai30 Jul 2025AY 2021-22

For Appellant: Shri. Suraj Nahar, C.AFor Respondent: Shri. Kumar Chandan, J.C.I.T

Section 11Section 12ASection 143(1)Section 234BSection 250

DCIT, New Delhi vs. M/S Gen X Commodities (P) Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 3560/DEL/2016[2010-11]Status: DisposedITAT Delhi25 Jul 2025AY 2010-11

Bench: Shri Mahavir Singh & Shri Amitabh Shukla[Assessment Year : 2010-11] Dcit Vs M/S. Gen X Commodities (P) Ltd., Central Circle-29 Fa-45, Shivaji Enclave New Delhi New Delhi-110027 Pan-Aaaca2303H Appellant Respondent Shri Jitender Singh, Cit Dr Revenue By Assessee By Shri Ved Jain, Adv. & Shri Ayush Garg, Ca Date Of Hearing 26.06.2025 Date Of Pronouncement 25.07.2025

Section 14ASection 2(22)(e)Section 250(6)

assessed to tax and such profit/losses, are included in total income declared in each of such case, which has been charged at the maximum marginal rate. Therefore, it is submitted that, there cannot be any allegation of intention to avoid taxes by shifting profit to loss by manipulating entries

Shree Piyushpani Sthapatya Sangrahalay Trust, Mumbai vs. ITO Exemption Ward 2(3), Mumbai

In the result, ground of appeal of

ITA 3428/MUM/2025[2022-23]Status: DisposedITAT Mumbai24 Jul 2025AY 2022-23

Bench: Shri Pawan Singh

Section 11Section 12ASection 139(1)Section 139(8)Section 143(1)(a)Section 254(1)

spirit, as per judicial discipline. 7. Without prejudice to the above grounds, the Ld. CIT(A) NFAC failed to appreciate that the maximum marginal rate should not have been applied while calculating the tax on taxable income. 8. The Appellant Company craves leave to add, withdraw, amend, or alter ... section 11, rather only seeking allowance of various expenses which is otherwise allowable. The ld. AR further submits that assessee is taxed at Maximum Marginal Rate (MMR). Section 164(2) is not applicable in case assessee as it references only the trust which is not exempt

Shree Piyushpani Sthapatya Sangrahalay Trust, Mumbai vs. Dy Director ITO Exemption Ward 2(3), Mumbai

In the result, ground of appeal of

ITA 3427/MUM/2025[2021-22]Status: DisposedITAT Mumbai24 Jul 2025AY 2021-22

Bench: Shri Pawan Singh

Section 11Section 12ASection 139(1)Section 139(8)Section 143(1)(a)Section 254(1)

Shailendra Gala Navneet Trust, Mumbai vs. Deputy Diretor of Income Tax Ward 22(2)(1), Mumbai

In the result, the appeal of the assessee in assessment year

ITA 4355/MUM/2024[2022-23]Status: DisposedITAT Mumbai24 Jul 2025AY 2022-23

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary ()

For Appellant: Mr. Pravin Salunkhe, Sr. DRFor Respondent: Mr. Sanjay Parikh

Section 143(1)

which mandates taxation at purview of Section 164(1) of the Act, which mandates taxation at the Maximum Margin Maximum Marginal Rate (MMR). The CIT(A) further held that the . The CIT(A) further held that the MMR includes not just the highest basic rate of tax (30%) but also ... return of the income. There is no There is no total income at Rs. 8,16,680/ dispute regarding the applicability of maximum marginal rate to dispute regarding the applicability of maximum marginal rate to dispute regarding the applicability of maximum marginal rate to the appellant. The only dispute

Shailendra Gala Navneet Trust, Mumbai vs. Deputy Director of Income Tax Ward 22(2)(1), Mumbai

In the result, the appeal of the assessee in assessment year

ITA 4354/MUM/2024[2023-24]Status: DisposedITAT Mumbai24 Jul 2025AY 2023-24

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary ()

For Appellant: Mr. Pravin Salunkhe, Sr. DRFor Respondent: Mr. Sanjay Parikh

Section 143(1)

Late Shri Nihal Chand Charitable Trust, Delhi vs. Ld. ADIT CPC, Banglore

Appeal is allowed

ITA 3226/DEL/2025[2019-20]Status: DisposedITAT Delhi23 Jul 2025AY 2019-20

Bench: Sh. Satbeer Singh Godaraita No. 3226/Del/2025 : Asstt. Year: 2019-20 Late Shri Nihal Chand Charitable Vs Adit Cpc, Trust, 22, Dayanand Vihar, Vikas Bangalore, Marg, Delhi-110092 Karnataka-560500 (Appellant) (Respondent) Pan No. Aabtl6503G Assessee By: Sh. Paras Dawar, Ca Revenue By : Sh. Manoj Kumar, Sr. Dr Date Of Hearing: 23.07.2025 Date Of Pronouncement: 23.07.2025 Order This Assessee’S Appeal For Assessment Year 2019-20 Arises Against The Addl./Jcit(A)-1, Nagpur’S Din & Order No. Itba/Apl/S/250/2024-25/1074774242(1) Dated 20.03.2025, In Proceedings U/S 143(1) Of The Income Tax Act, 1961 (In Short “The Act”).

For Appellant: Sh. Paras Dawar, CAFor Respondent: Sh. Manoj Kumar, Sr. DR

Section 11Section 12ASection 143(1)

assessee’s sole substantive grievance canvassed in the instant appeal seeks to reverse the learned lower authorities’ action assessing it at the maximum marginal rate despite the fact that it is not a registered trust u/s 12A of the Act entitled for section 11 exemption. 2 Late Shri Nihal Chand ... department that such an unregistered trust is assessable as an AOP/individual entitled for the statutory exemption(s) than to be assessed at the maximum marginal rate. I accordingly adopt the learned co- ordinate bench detailed findings mutatis mutandis to this effect and direct the learned assessing authority to frame

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

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

ITA 131/DEL/2025[2021-22]Status: DisposedITAT Delhi23 Jul 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanvindhya Trust, Vs. Dcit, Circle 49 (1), B – 60/61, C/O Bajaj Auto Limited, Delhi. Naraina Industrial Estate, Delhi – 110 028. (Pan : Aaatv0303K) (Appellant) (Respondent) Assessee By : Shri Mahender Gohel, Ca Revenue By : Shri Ramesh Chand, Sr. Dr Date Of Hearing : 13.05.2025 Date Of Order : 23.07.2025 O R D E R Per S.Rifaur Rahman: 1. This Appeal Is Filed By The Assessee Against The Order Of Ld. Addl/Joint Commissioner Of Income-Tax (Appeals) – 3, Hyderabad [Hereinafter Referred To As ‘Ld. Jcit (A)] Dated 12.11.2024 For Assessment Year 2021-22 Raising Following Grounds Of Appeal :- “Ground 1 - Rate Of Tax: The Learned Commissioner Of Income Tax (Appeals) [Cit(A)] Has Erred In Upholding Levy Of Tax At Flat Rate Of30%, Instead Of Normal Slab Rates Applicable In The Case Of The Appellant. The Learned Cit(A) & The Learned Assessing Officer Failed To Appreciate That The Appellant Is An Association Of Persons (Aop)/Charitable Trust Not Claiming Benefits Of Section 11 Of The Act & Is Liable To Pay Tax At The Slab Rates Applicable In The Case Of An Individual, Etc. The Appellant Prays That The Learned Assessing Officer Be Directed To Re-Compute

For Appellant: Shri Mahender Gohel, CAFor Respondent: Shri Ramesh Chand, Sr. DR

Section 11Section 143(1)Section 167BSection 234BSection 234C

members of 3 the assessee AOP are not undetermined, therefore, tax shall be charged at the total income of the assessee at the maximum marginal rate as per section 167B of the Act. Similarly, after considering the submissions of the assessee, ld. CIT (A) sustained the surcharge levied ... 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

Rajiv Trust, Mumbai vs. Deputy Commissioner of Income Tax, Mumbai

In the result, the appeal of the assessee is allowed

ITA 161/MUM/2025[2022-23]Status: DisposedITAT Mumbai15 Jul 2025AY 2022-23

Bench: Shri Pawan Singh& Ms. Padmavathy S

Section 111ASection 12ASection 143(1)Section 2Section 234CSection 254(1)

4272/M/2024 dated 09.04.2025, wherein it has been held that in case of ‘Private Discretionary Trust’, whose income is chargeable maximum marginal rate, surcharge is chargeable at respective slab rate and not at the highest rate. Copy of decision of Special Bench of Tribunal in Araadhya Jain Trust (supra) is filed ... under section 12A. The assessee while filing return of income has shown income of Rs. 56.44 crore. The assessee calculated payable tax at maximum marginal rate i.e. at 30% and surcharge @ 15%. The Central Processing Centre (CPC) made adjustment and applied surcharge at 30% as per intimation dated

Rajiv Trust, Mumbai vs. Deputy Commissioner of Income Tax, Mumbai

In the result, the appeal of the assessee is allowed

ITA 160/MUM/2025[2023-24]Status: DisposedITAT Mumbai15 Jul 2025AY 2023-24

Bench: Shri Pawan Singh& Ms. Padmavathy S

Section 111ASection 12ASection 143(1)Section 2Section 234CSection 254(1)

Estate of Satibai Tahilram Chellaram, Mumbai vs. Income Tax Officer Ward 23(1)6, Mumbai

In the result, a ground of appeal of the assessee for AY 2021-22 is

ITA 1428/MUM/2025[2022-23]Status: DisposedITAT Mumbai07 Jul 2025AY 2022-23

Bench: Shri Pawan Singh

Section 143(1)(a)Section 154Section 254(1)

Appeals grossly erred in holding that the appellant was liable to be taxed as an AOP at the maximum marginal rate mainly on the ground that the appellant had not furnished a copy of any trust deed totally being blindfolded to the fact that the appellant is not a trust ... erred in coming to a conclusion that if there is more than one trustee the AOP is liable to be taxed at the maximum marginal rate inspite of the fact that the beneficiaries are all individuals and as per the provision of S. 159 r.w.s. S. 164 of the Income

Estate of Satibai Tahilram Chellaram, Mumbai vs. Income Tax Officer Ward 2391)(6), Mumbai

In the result, a ground of appeal of the assessee for AY 2021-22 is

ITA 1417/MUM/2025[2023-24]Status: DisposedITAT Mumbai07 Jul 2025AY 2023-24

Bench: Shri Pawan Singh

Section 143(1)(a)Section 154Section 254(1)

Estate of Satibai Tahilram Chellaram, Mumbai vs. Income Tax Officer Ward 23(1)(6), Mumbai

In the result, a ground of appeal of the assessee for AY 2021-22 is

ITA 4757/MUM/2024[2021-22]Status: DisposedITAT Mumbai07 Jul 2025AY 2021-22

Bench: Shri Pawan Singh

Section 143(1)(a)Section 154Section 254(1)

Satyam Sureka, Kolkata vs. DCIT, Central Cir-3(3), Kolkata

In the result, all the appeals of the different assessees are partly allowed

ITA 152/KOL/2025[2015-16]Status: DisposedITAT Kolkata02 Jul 2025AY 2015-16

Bench: Shri Rajesh Kumar&Shri Pradip Kumar Choubey] I.T.(S.S).A. No. 13 /Kol/2025 Assessment Years: 2013-14 Satyam Sureka Vs. Dcit, Central Circle-3(3), Kolkata

Section 115BSection 132Section 142(1)Section 143(2)Section 250Section 56(2)Section 68

cannot be termed to be an amount received by the beneficiaries without consideration. The fact that the trust had borne the tax at maximum marginal rate on its income has also not been controverted. Therefore, the addition cannot be upheld on the applicability of clause (vi) of Sub-section

Anil Gala Navneet Trust, Mumbai vs. Income Tax Officer Ward 22(1)(6), Mumbai

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

ITA 2951/MUM/2025[2022-23]Status: DisposedITAT Mumbai02 Jul 2025AY 2022-23

Bench: Shri Sandeep Gosain & Shri Om Praksh Kantanil Gala Navneet Trust Vs Income Tax Cpc, Bengaluru Navneet Bhavan, Bhavani Shankar Road, Nr. Shardashram Society, Dadar (West), Mumbai-400 028 Pan : Aada5826D Appellant Respondent

For Appellant: Shri Sanjay ParikhFor Respondent: Shri Pravin Salunkhe – (SR. DR.)

Section 143(1)Section 164Section 2Section 234Section 250

substantive issue raised in the appeal pertains to “Whether, in the case of private discretionary trusts whose income is chargeable to tax at maximum marginal rate, surcharge is chargeable at the highest applicable rate or at a slab rates?" We find that the issue is squarely covered by the judgement ... holding as under:- 10.On the above factual matrix of the case, it is observed that the surcharge applicable of tax computed at Maximum Marginal Rate (MMR) in accordance with Section 164 of the Act along with Section 2(29C) of the Act is as per the relevant Finance

Arya College, Ludhiana, Punjab vs. DCIT, Exemptions Circle 1, Chandigarh

In the result, appeal of the assessee is allowed for

ITA 1132/CHANDI/2024[2018-19]Status: DisposedITAT Chandigarh01 Jul 2025AY 2018-19

For Appellant: Shri B.M. Monga & Shri Rohit Kaura, AdvocatesFor Respondent: Shri Manav Bansal, CIT DR

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

issue in grounds of appeal i.e. whether or not CPC was justified in disallowing admissible expenses while computing income to be taxed at maximum marginal rate, it is to be stated that the administrative expenses involved in running day to day affairs of the Trust are required to be deducted ... before arriving at the income of the Trust which would be taxed at maximum marginal rate. However, since this authority does not have access to the said expenses or the correctness of the said expenses, it is not possible for this authority to ascertain as to which and to what

Shri Laxminarayan Alias Balaji Devasthan, Belgaum vs. Assistant Director of Income Tax, CPC, Bangalore

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

ITA 134/PAN/2024[2021-22]Status: DisposedITAT Panaji30 Jun 2025AY 2021-22

Bench: Shri Pavan Kumar Gadale & Shri G D Padmahshalii T A. Nos.134/Pan/2024 (A.Y. 2021-22 ) Shri.Laxminarayan Alias Balaji Vs Adit, Devastan, Cpc, Bangalore. . Vithal Deo Galli Shahapur, . Belgaum-590003, . Karnataka. Pan .No. Aabas4995A (अपीलाथ"/Appellant) (""यथ"/Respondent)

Section 143(1)

income was processed under section 143(1) of the Act by the CPC accepting the returned income but the Surcharge was computed at Maximum Marginal Rate (MMR)@37% on the total tax payable and determined demand payable of Rs.14,47,420/- vide order dated 2-11-2022. 3. Aggrieved ... facts and submissions of the assesse in the proceedings. The Ld.AR mentioned that where the total income is chargeable to tax at Maximum Marginal Rate (MMR), the surcharge has to computed on the income tax in reference to slab rates prescribed in the finance act. The Ld.AR also submitted that