9911796707
TMI Blog2018 (9) TMI 2156X X X X Extracts X X X X X X X X Extracts X X X X ..... come assessed instead of normal tax rates applicable to the Society. 3. Brief facts of the case are that the assessee is a Trust registered under the Societies Registration Act, 1860. The Assessing Officer (AO) found that the funds of the Trust/Society were invested in contravention to the investment pattern laid down in section 11(5) r.w.s.13(2)(d) of the Income Tax Act, 1961 (hereinafter called as 'Act'). Though the assessee is claiming the exemption u/s 11(5) and 10(23)(c), since the society contravened the provisions of Section 11(5), the AO brought the investments to tax for which the Ld.AR has accepted the addition made by the AO. However, the AO taxed the assessee's income at maximum marginal rate. 4. Aggrieved by the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for maximum marginal rate. For ready reference we extract relevant part of Section 167B(1) of the Act which reads as under: 167B. (1) Where the individual shares of the members of an association of persons or body of individuals (other than a company or a co-operative society or a society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India) in the whole or any part of the income of such association or body are indeterminate or unknown, tax shall be charged on the total income of the association or body at the maximum marginal rate : Plain reading of section 167B of the Act indicates that the income of company or cooperative society or a society regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilar in this case, therefore, following the decision of coordinate bench and section 167B of the Act, we hold that the income of the assessee is to be taxed at normal rates but not at maximum marginal rate, accordingly, we set aside the order of the Ld. CIT(A) and allow the appeal of the assessee on this ground. 6. During the appeal hearing, the Ld.DR did not bring any other decision of the higher court to controvert the case laws relied upon by the Ld.AR. Since, the facts are identical, respectfully following the rule of consistency and the view taken by this Tribunal in the case cited supra, we hold that the income of the assessee is to be taxed at normal rates, but not at maximum marginal rates. Accordingly, we set aside the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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