Wings Educational Society Vs ITO (ITAT Visakhapatnam)
Summary: Wings Educational Society, a society registered under the Societies Registration Act, 1860, filed its return for AY 2024-25 in the status of an AOP/BOI declaring total income of Rs. 2,47,640/-. The Centralized Processing Center/Ld. AO processed the return by applying the maximum marginal rate along with surcharge and cess, resulting in tax of Rs. 96,580/- and interest of Rs. 11,628/-, and raised a demand of Rs. 1,08,210/-. The assessee challenged the adjustment before the Ld. CIT(A), which sustained the adjustment, and thereafter appealed to the Tribunal. The assessee contended that, being a society registered under the Societies Registration Act, 1860, it was eligible for the normal rate of tax applicable to an AOP/BOI and that the provisions of section 167B could not justify taxation at the maximum marginal rate merely because the return was filed in the status of AOP/BOI. The assessee also challenged the interest of Rs. 6,755/- under section 234B and Rs. 4,873/- under section 234C. The Tribunal noted that the appellant was a society registered under the Societies Registration Act, 1860, had filed its return in the status of AOP/BOI and had reported income below the taxable limit. It held, on the facts recorded in the order, that the assessee was eligible for the normal rate of tax in terms of section 167B. The Tribunal therefore directed the Ld. AO to compute tax at the normal rate and, where the total income was below the taxable limit, to accept the return without any tax liability. The appeal filed by the assessee was accordingly allowed. The order was pronounced in the open court on 21th August, 2026.
