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TMI Blog1993 (6) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... he only point raised in this appeal is as follows: "The learned CIT(A) erred in holding that the maximum marginal rate to be applied is Rs. 35,250 plus 55% of the amount by which the total income exceeds Rs. 1 lakh plus surcharge @12.5% of such income-tax. He failed to note that the Expln. 2 to s. 164 clearly states that the rate means the rate applicable to the highest slab and hence for asst. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch may be interpreted to mean Rs. 35,250 on the income upto Rs. one lakh plus 55 per cent of the excess, if any, plus the surcharge." The Revenue is aggrieved against the aforesaid finding of the CIT(A) and in second appeal before the Tribunal. 5. We have heard rival submissions. Shri Abraham, the learned Senior Departmental Representative, contended that as per First Schedule Part I of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant year." Thus, it does not represent the highest rate of income-tax as provided for in the First Schedule because by definition it includes surcharge on income-tax in relation to slab of income. Moreover, the Explanation does not refer to "maximum rate of tax". On the other hand it goes a step further and describes it as "maximum marginal rate of tax". In other words, the maximum rate will h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibed for different slabs of income and non-tax slab of income. This is what is meant by maximum marginal rate. 6. In view of the above, we dismiss the appeal of the Revenue. ITA No. 775/Coch/88 7. The only grievance in this appeal is against the finding of allowance of entire salary paid to three employees of the assessee. 8. In the assessment, the assessee claimed the salary paid to three ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal in ITA No. 817/Coch/86 for the asst. yr. 1983-84 dt. 6th Feb., 1992, in the assessee's own case, wherein we have held as under: "the salary and remuneration have been paid in pursuance of resolution passed by the Board of Trustees with the full acquiescence of all the beneficiaries and the turnover of the business and the profitability was fairly substantial. The Tribunal also found t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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