National Association of Interlocking Surgeons Vs ITO (ITAT Pune)
ITAT Pune held that Association of Person (AOP) taxable at Normal Rates instead of Maximum Marginal Rate (MMR) as provisions of section 167B of the Income Tax Act are not applicable. Accordingly, appeal of assessee allowed.
Facts- The assessee is an AOP taxable under the Normal rate of Income-tax. It filed the return of income for the Y. 2010-11 which was processed by CPC on 26.03.2012 by calculating the tax payable at Maximum Marginal Rate. The assessee filed the rectification application u/s.154 requesting the AO to calculate the tax payable under Normal Tax rate, which came to be rejected. Now the assessee is in appeal before the Tribunal.
Conclusion- Coordinate Benches of Tribunal in Dr. Shalmali Khasbardar Foundation Vs. ITO (exemption), wherein, it is held that the share of the beneficiaries are not known though the assessee in the return of income mentioned itself to be an AOP and therefore provisions of Section 167B are not applicable.
Held that the income of the assessee is not chargeable to tax at Maximum Marginal Rate but is chargeable to tax at Normal The Revenue authorities are directed to calculate the tax liability of the assessee as per the Normal Tax rates. Accordingly, I set aside the impugned order of ld. CIT(A) and allow the grounds of appeal raised by the assessee.
