Section 167B exclusion for societies registered under corresponding State law prevents taxation at the maximum marginal rate.

Section 167B does not apply to a society registered under the Andhra Pradesh Societies Registration Act, 2001 because that State law is a corresponding enactment to the Societies Registration Act, 1860. The statutory exclusion in section 167B extends to societies registered under the 1860 Act or any corresponding law in force in any part of India, so the assessee society fell outside the provision. Taxation at the maximum marginal rate was therefore not sustainable, and the tax computation made on that basis was set aside.

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Issues: Whether section 167B of the Income-tax Act applies to a society registered under the Andhra Pradesh Societies Registration Act, 2001, and whether taxation at the maximum marginal rate was justified.

Analysis: The assessee was registered under the Andhra Pradesh Societies Registration Act, 2001, which was held to be a corresponding enactment to the Societies Registration Act, 1860. The statutory exclusion in section 167B covers a society registered under the Societies Registration Act, 1860 or under any law corresponding to that Act in force in any part of India. On that basis, the assessee society fell outside the scope of section 167B. The application of the maximum marginal rate was therefore not sustainable.

Conclusion: Section 167B had no application to the assessee society, and the addition based on the maximum marginal rate was not justified.

Final Conclusion: The assessee's claim succeeded on the applicability of section 167B, and the tax computation made on that basis was set aside.

Ratio Decidendi: A society registered under a State enactment corresponding to the Societies Registration Act, 1860 falls within the statutory exclusion in section 167B and cannot be taxed at the maximum marginal rate under that provision.

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