2017 (4) TMI 1657

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..... s of an artificial juridical person and not AOP. However the Learned CIT(Appeals) has rejected this contention and held that the assessee is an AOP. Neither the AO nor CIT(Appeals) have examined the aspect from the provisions of section 167B which provide exception for application of maximum marginal rate in the case of society which is registered in the Societies Registered Act 1860. Accordingly the only falls limited purposes the matter is set aside to the file of the Assessing Officer to examine the applicability of section 167B in the case of the assessee accordingly to decide the issue in accordance with the law. Appeal of the assessee is partly allowed for statistical purposes.
Shri N.K. Saini Accountant Member And Shri Amit Shuk .....

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..... the Finance Act i.e. basic exemption limit is also available in the case of the AOP which has not been provided while computing the income. 5 That learned Commissioner of Income Tax (Appeals) and assessing officer both have erred in failing to appreciate that appellant is a registered Society under the Societies Registration Act 1860, as such, rate of tax provided in section 167A of the Act is inapplicable in the case of the appellant. 6 That the learned Commissioner of Income Tax (Appeals) has further erred by sustaining of levy of interest u/s 234B of the Act, which is not leviable on the facts of the appellant company." 2. At the outset, it is noticed that the appeal of the assessee is barred by limitation by 91 days. In the petiti .....

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..... is registered under the Society Registration Act; and lastly, only interest income from none members is to be taxed and accordingly interest income of Rs. 1,39,820/- has been assessed by the Assessing Officer. 4. However the Assessing Officer has taxed the said assessee at a maximum marginal rate after invoking section 167B. 5. The Learned CIT(Appeals) held that the assessee is to be taxed as AOP because AJP is only to be deemed have an existence only where does not covered in any other clauses of section 2(31). Before us the only limited point made by the ld. counsel Ms. Sumangala Saxena is that the ld. Assessing Officer while applying the maximum marginal rate after invoking provision of section 167B has failed to consider the fact .....

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