Calculation of tax at the maximum marginal rate instead of slab rate

This Income Tax Appellate Tribunal case concerns the Vidya Vihar Shiksha Samiti for the Assessment Year 2015-16. The tax was initially computed at the maximum marginal rate of 30% on the total income, rather than the applicable slab rate. The Tribunal found that the Commissioner (Appeals) had taken a contradictory stance and was not justified in doing so. Consequently, the order was set aside, and the Assessing Officer was directed to charge tax at the normal slab rates.

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH : SMC : NEW DELHI
BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER
ITA No.7642/Del/2019
Assessment Year: 2015-16

Vidya Vihar Shiksha Samiti,
1/11864, Panchsheel Garden,
Naveen Shahdara,
New Delhi.
PAN: AAATV1225A

vs

ACIT, CPC,
Bangalore.

Assessee by : Shri Rajiv Jain, CA
Revenue by : Shri R.K. Gupta, Sr. DR
Date of Hearing : 01.09.2021
Date of Pronouncement : 04.10.2021

ORDER

This appeal filed by the assessee is directed against the order dated 26th July, 2019 of the CIT(A)-40, New Delhi, relating to Assessment Year 2015-16.

2. Facts of the case, in brief, are that the assessee filed its return of income at Rs.2,96,610/-. The tax liability of Rs.4,801/- was adjusted against TDS of Rs.7,463/-. Tax was computed at the maximum marginal rate @ 30% on the total income of Rs.2,96,610/- instead of applying the slab rate. The assessee filed an appeal before the CIT(A), who dismissed the appeal filed by the assessee.

3. The Revenue could not rebut the fact that the Ld. CIT(A) has taken contradictory view. I therefore, considering the totality of facts of the present case hold that Ld.CIT(A) was not justified in taking contrary stand in this case of the assessee. Hence, the Assessing Officer is hereby directed to charge tax at normal rates.”

4. Similar view has again been taken in A.Y. 2017-18 in the same order. Since the facts of the instant case are identical to the facts in the cases in ITA Nos.7641 & 7643/Del/2019 cited (supra), therefore, respectfully following the decision of the coordinate Bench of the Tribunal in assessee’s own case, I set aside the order of the CIT(A) and direct the AO to charge tax at normal rate. The grounds raised by the assessee are accordingly allowed. In the result, the appeal filed by the assessee is allowed. The decision was pronounced in the open court on 04.10.2021.

Please find attached the enclosed file for the full judgement