ITAT Rules on AOP Rental Income: Maximum Marginal Rate Applies if Any Member's Tax Rate Exceeds MMR Under Section 167B

ITAT set aside CIT(A)'s orders concerning taxation of rental income earned by an AOP under s.167B. While co-ownership agreement specified determinate shares, verification of individual members' tax rates was deemed necessary. The Tribunal held that if any AOP member is taxable at rates higher than MMR, entire AOP income must be taxed at MMR per s.167B. Matter remanded to AO for verification of co-owners' applicable tax rates from individual returns. If no member exceeds MMR threshold, income to be taxed at normal slab rates under s.167B(2). Conversely, if any member's rate exceeds MMR, AOP's entire income shall be taxed at MMR. Appeals allowed for statistical purposes. .....

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