TaxTMI 
TaxTMI 
2026 (5) TMI 1617
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....ing out of intimation order dated 13.10.2022, 15.06.2023 & 06.06.2024 passed u/s 143(1) of the Act pertaining to assessment year 2021-22 to 2023-24 respectively. 2. As all the three captioned appeals filed by the assessee have similar issues which are inter-linked, inter-connected and this fact has been admitted by both the parties during the course of hearing before us, therefore, all the appeals filed by the assessee are decided by a common order. 3. Brief facts of the case are that assessee company is a charitable trust assessed as AOP (trust) and not claimed any benefit u/s 11 of the Act. The tax has been paid at the slab rate applicable to the individual however, the while processing the return of income for all the three years, ....
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....m Marginal Rate ("MMR") or as per normal rates of tax as applicable on Individual and HUF. The Co-ordinate bench of the Tribunal in the case of Vindhya Trust in ITA No.131/Del/2025 order dated 23.07.2025 has dealt with the issue and decided the same in favour of the assessee by making following observations:- "2. At the time of hearing, ld. AR of the assessee submitted that the assessee is an AOP, filed its return of income for the AY 2021-22 on 11.10.2021 declaring total income of Rs.1,18,24,410/-. The return was processed under section 143(1) of the Income-tax Act, 1961 (for short 'the Act') wherein CPC has accepted the return of income, however the AO levied tax at a flat rate of 30% as against the assessee's applicable tax slab....
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.... vs. ITO - (2025) 172 taxmann.com 9 (Pune); (iii) ITAT, Cochin Bench in the case of Mahakavi Edasseri Smarka Trust vs. ITO (E) - (2024) taxmann.com 44 (Cochin); (iv) ITAT, SMC, Ahmedabad Bench in the case of Jain Sangh Parabdi Khayu Trustee vs. DCIT, Bangalore - ITA No.353- 354/AHD/2021. 6. On the other hand, ld. DR of the Revenue relied on the orders of the authorities below. 7. Considered the rival submissions and material placed on record. We observe that in the current assessment year, lower authorities have applied the rate of MMR and also applied surcharge applicable to AOP as applicable to section 167B (1) of the Act. However, it is brought to our notice that the constitution and functions of the a....
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....ts of the appellant for the reason mentioned supra. Hence, the rate of MMR under both sub sections (1) and (2) of 1678 is not applicable to appellant' case. 7.2.7. It is pertinent to refer to the Circular of the C8DT in No. 320, dated 11.01.1982. The said circular is reproduced as under: "Circular: No. 320 [F. No. 131(31)/81-TP (Pt.)], dated 11-1-1982- SECTION 167A ASSESSMENT WHERE SHARES OF MEMBERS UNKNOWN) 911. Whether the section is applicable to income received by trustees on behalf of provident funds created exclusively for the benefit of employees 5 ITA No.131/DEL/2025 1. A reference is invited to paragraph 15. 1 to 15.7 of the Explanatory Notes on the provisions relating to direct taxes in the ....
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.... 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 167 A 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 at the maximum marginal rate". 7.2.8. In view of the above, the appeal of the appellant is allowed and AO is directed to tax the appellant's income at the normal tax rates applicable to AOP or Body of Individuals for the AY 2022-23." 8. Similarly, we observe that ITAT, Cochin Bench ....