Vindhya Trust Vs DCIT (ITAT Delhi)
The assessee appealed against the order dated 12.11.2024 passed by the Additional/Joint Commissioner of Income-tax (Appeals) for Assessment Year 2021-22. The appeal challenged (i) levy of tax at a flat rate of 30% instead of the normal slab rates applicable to the assessee, (ii) levy of surcharge at 37% instead of 15%, and (iii) charging of interest under Sections 234B and 234C of the Income-tax Act, 1961.
The assessee submitted that it was an Association of Persons (AOP) and a charitable trust not claiming exemption under Section 11 of the Act. It had filed its return of income for AY 2021-22 on 11.10.2021 declaring a total income of ₹1,18,24,410. While processing the return under Section 143(1), the Central Processing Centre accepted the returned income but levied tax at a flat rate of 30% and imposed surcharge at 37%, treating the assessee as liable to the maximum marginal rate.
Before the first appellate authority, the assessee contended that it was liable to tax at the normal slab rates applicable to an AOP and that surcharge should be levied at 15% because its total income was between ₹1 crore and ₹2 crore. The Commissioner (Appeals), however, held that the shares of the members of the AOP were not determined and, therefore, tax was chargeable at the maximum marginal rate under Section 167B of the Act. The Commissioner (Appeals) also upheld the surcharge and found no error in the computation of the tax liability.
