Vihar Trust Vs DCIT (ITAT Delhi)
The ITAT Delhi partly allowed the assessee’s appeal against the order of the CIT(A) dated 19.09.2025 relating to the processing of the return under Section 143(1) of the Income-tax Act, 1961. The assessee challenged the ex parte disposal of the appeal, levy of tax at the Maximum Marginal Rate (MMR), surcharge at 37%, and consequential interest under Sections 234B and 234C.
Before the Tribunal, the assessee submitted that the dispute regarding the applicable rate of tax had already been decided in its own favour by the Delhi Tribunal in ITA Nos. 4372 to 4374/Del/2024 for Assessment Years 2021-22 to 2023-24 by order dated 29.01.2026. It was argued that, since no effective opportunity of hearing had been granted by the CIT(A), this binding decision could not be brought to the appellate authority’s notice, resulting in the matter being unnecessarily restored to the Assessing Officer. The assessee requested that tax be charged at the normal rates applicable to an Individual and HUF instead of the Maximum Marginal Rate. The Department relied on the orders of the lower authorities but left it to the Tribunal to consider the earlier decision in the assessee’s own case.
The Tribunal observed that the issue was identical to that decided in the assessee’s own earlier appeals. Referring to the earlier order, which had relied upon the decision in Vindhya Trust and other Tribunal decisions, it held that the assessee’s income was liable to be taxed at the normal rate and not at the Maximum Marginal Rate. Accordingly, Grounds 2.1 and 2.2 relating to the rate of tax were allowed.
