Badamtam Welfare Trust Vs Deputy Director of Income Tax (ITAT Kolkata)
ITAT Kolkata held that the surcharge is leviable only when the amount of income tax is computed where the total income exceeds Rs.50 lakhs. Here, surcharge is not leviable since income is less than Rs. 50 Lakhs. Accordingly, appeal allowed.
Facts- The assessee is a Welfare Trust. The assessee filed its return of income on 15.11.2023 declaring income of Rs.1,27,100/-. The tax liability computed in the return was Rs.40,655/- and after adjustment of TDS of Rs.43,200/-, the appellant claimed refund of Rs.2,545/-. AO accepted the return of income of Rs.1,27,100/-and the tax payable thereon at Rs.38,130/- including the interest under section 234F, but increased the tax liability from Rs.40,655/- to Rs.56,171/- erroneously by including surcharge of Rs.14,108/- and increasing the Health and Education Cess by Rs.565/-.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the surcharge is leviable only when the amount of income tax is computed where the total income exceeds Rs.50 lakhs. But in the case on hand, the return of income is only Rs.1,27,095/-, so on this income, income tax shall be charged at maximum marginal rate in terms of section 164 of the Income Tax Act. For levying the surcharge, it is necessary that the slab of income, which is chargeable to tax is exceeding Rs.50 lakhs and above. Therefore, I am of the considered view that the view taken by the ld. Addl./JCIT(Appeals) is against the law and cannot be sustained. Therefore, I direct the ld. Assessing Officer that there could not be any surcharge levied on the income tax since income of the assessee is less than Rs.50 lakhs. Hence, the grounds raised by the assessee are allowed.
