2026 (7) TMI 128

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....bad. By the impugned order, the learned CIT(A) dismissed the assessee's appeal against the intimation dated 28 December 2024 issued by CPC, Bengaluru, under section 143(1) of the Income-tax Act, 1961 ("the Act") for Assessment Year 2024-25, relevant to Financial Year 2023-24. 2. The sole issue for consideration is whether the assessee's income is chargeable to tax at the maximum marginal rate or at the slab rates prescribed under the relevant Finance Act. While processing the return of income, the Central Processing Centre computed the tax liability by applying the maximum marginal rate, whereas the assessee had offered the income to tax at the normal slab rates. The learned CIT(A) confirmed the action of the Central Processing Centre; t....

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....ble slab rates and not at the maximum marginal rate. The appellant also submitted that an identical issue had arisen in its own case for Assessment Years 2010-11, 2011-12, and 2012-13. In those years, the learned CIT(A), after considering the merits, remanded the matters to the Assessing Officer to verify the appellant's contentions and pass appropriate orders. Thereafter, the jurisdictional Assessing Officer examined the issue, rectified the assessment orders, accepted the appellant's position, and levied tax at the applicable slab rates instead of the maximum marginal rate. 7. However, for Assessment Year 2024-25, the year under consideration, the learned CIT(A) dismissed the appellant's appeal and upheld the action of the Central Proc....

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.... June 2022. In that decision, the Tribunal held that section 167B of the Act does not apply in such cases where the assessee is a registered society assessed as an Association of Persons. 10. The learned Departmental Representative strongly supported the orders of the lower authorities. 11. We have carefully considered the rival submissions and perused the orders of the lower authorities. Under section 167B of the Act, where the individual shares of the members of an association of persons or body of individuals are indeterminate or unknown, tax is chargeable on the total income of such association or body at the maximum marginal rate. However, the provision expressly excludes, among others, a society registered under the Societies Re....