Taxation of registered societies under section 167B confirmed at normal rates, not maximum marginal rate.

A society registered under the Societies Registration Act, 1860 was held not to fall within the class of persons taxable at the maximum marginal rate under section 167B of the Income-tax Act where members' shares are indeterminate or unknown. The Tribunal applied the statutory exclusion for such registered societies and followed earlier coordinate bench decisions, noting that no contrary higher court ruling was produced. The income was therefore taxable at normal rates, not at the maximum marginal rate, and the assessee succeeded on this issue.

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Issues: Whether the income of a society registered under the Societies Registration Act, 1860 could be taxed at the maximum marginal rate or at normal rates under section 167B of the Income-tax Act, 1961.

Analysis: The assessee was a society registered under the Societies Registration Act, 1860. The Tribunal noted that section 167B excludes a society registered under that Act from the category on which tax is charged at the maximum marginal rate where the shares of members are indeterminate or unknown. It further noted that the applicable position had already been taken in earlier coordinate bench decisions and that no contrary higher court ruling was shown.

Conclusion: The income of the assessee was held to be taxable at normal rates and not at the maximum marginal rate, and the assessee's appeal was allowed on this ground.

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