Gulmohar Park Journalists’ Colony Welfare Association Vs ITO (ITAT Delhi)
The appeal was filed by the assessee against the order of the Addl./JCIT (Appeals)-4, Hyderabad, dated 31.10.2025, arising from an assessment under Section 143(3) of the Income Tax Act, 1961 for Assessment Year 2024–25. The dispute concerned the application of maximum marginal rate (MMR) taxation and surcharge on the income of the assessee, an association of persons (AOP).
The assessee had filed its return declaring an income of ₹1,45,720, which was processed under Section 143(1) by the CPC on 28.12.2024. The CPC applied tax at the maximum marginal rate of 30% along with a surcharge of 25%, resulting in a tax demand of ₹62,729 including interest. The assessee challenged this, contending that Section 167B was not applicable and that its income level did not justify taxation at MMR. It also argued that the provisions of Section 115BAC, relating to the new tax regime, were relevant and had not been properly considered. The assessee further objected to the levy of surcharge.
The first appellate authority upheld the CPC’s action and confirmed the application of MMR and surcharge. The Revenue supported the orders of the lower authorities.
Before the Tribunal, the assessee reiterated that Section 167B(1) was not applicable and emphasized that the option exercised under Section 115BAC should determine the applicable tax rate. It argued that given the declared income of ₹1,45,720, taxation at MMR was not justified.
