Pawai Trust Vs DCIT (ITAT Delhi)
The ITAT Delhi allowed the assessee trust’s appeal holding that income of a public charitable trust (not claiming exemption u/s 11) cannot be taxed at Maximum Marginal Rate (MMR) while processing return u/s 143(1). The CPC had applied flat 30% rate treating the assessee as an AOP, but the Tribunal noted that in similar cases and CBDT Circular No.320, public charitable trusts where members do not have determinate shares are taxable at normal slab rates applicable to AOP/individual category and not at MMR. Relying on co-ordinate bench decisions in Vindhya Trust and Jasmina Trust, the Tribunal directed recomputation of tax at normal slab rates and consequential relief in interest u/s 234C. Accordingly, the appeal of the assessee was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This appeal is filed by the assessee against the order of ld. Commissioner of Income-tax (Appeals)ADDL/JCIT (A), Agra (hereinafter referred to ‘ld. CIT (E)’) dated 20.03.2025 for Assessment Year 2021-22.
2. At the time of filing of appeal, the Registry has pointed out a defect that appeal is time barred by 83 days.
3. We have heard both the counsels on the issue of condonation of delay. In our considered opinion, there was a reasonable cause for the delay in filing the appeal. Therefore, we condone the delay in filing the appeal before the Tribunal.
