From the plain reading of section 167B, the taxability of an AOP is based on whether the members' shares...

From the plain reading of section 167B, the taxability of an AOP is based on whether the members' shares are determinate or indeterminate. When indeterminate, tax is charged at the Maximum Marginal Rate (MMR) or higher if a member's income is taxable at a higher rate than MMR. MMR is the highest income tax rate applicable to individuals, AOPs or BOIs. In this case, the AOP stated members' shares as determinate (TPL 99.99%, Chint 0.01%) in its ITR. TPL is a domestic company taxable at MMR (30%), while Chint, a foreign company, is taxable at a higher rate (40%). The Tribunal opined that Chint's share (0.01%) should be taxed at 40% plus surcharges/cesses, and TPL's share (99.99%) at 30% plus surcharges/cesses. The interest levied u/ss 234A, 234B and 234C was upheld. The Tribunal's decision was based on the precedent of Herve Pomerleau International CCCL Joint Venture. .....

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