2022 (6) TMI 1027

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ct, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Years 2016-17 & 2017-18. 2. The assessee has raised the following ground of appeal: The Commissioner of Income Tax(Appeal) erred in directing to tax income at maximum marginal rate through the trust is registered under public charitable trust Act therefore tax should be charged at normal rate of tax. 3. The only issue raised by the assessee is that the learned CIT (A) erred in confirming the intimation of the CPC by applying the maximum marginal rate of tax on the income which was below the taxable limit. 4. The facts as emerging from the records available before us are that the assessee in the year under consideration has filed return of income declari....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....l in computation of income. But the CPC acted beyond jurisdiction to decide the applicability of rate of tax. 5.3 However, the learned CIT-A disregarded the contention of the assessee by observing that the assessee is not registered under section 12A of the Act. Therefore the case of the assessee is covered by the provisions of section 164(1) of the Act which provides to charge the tax at the rate of maximum marginal rate. 6. Being aggrieved by the order of the learned CIT-A the assessee is in appeal before us. 7. The learned AR also contended that rate of tax as provided under section 164 of the Act as applicable to an individual should be considered. As such, it was the contention of the learned AR that the slab rate of tax shoul....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....led by the appellant. It is observed that the appellant is a Public Charitable Trust registered under the Bombay Charitable Trust Act. 9.2 At this juncture, it is noteworthy to make a reference to the CBDT circular bearing No. 320 issued on 11th of January 1982 which reads as under: "Similarly, in the cases of registered societies, trade and professional associations, social and sports clubs, charitable or religious trusts, etc., where the members or trustees are not entitled to any share in the income of the association of persons, the provisions of new section 167A will not be attracted and, accordingly, tax will be payable in such cases at the rate ordinarily applicable to the total income of an association of persons and not....