The assessee, a society registered under the Societies Registration Act, 1860, filed its return of income for A.Y. 2024-25. While processing the return under section 143(1), the CPC applied the Maximum Marginal Rate (MMR) under section 167B and raised a demand. The rectification application under section 154 was rejected and the CIT(A) affirmed the action. On appeal, the Tribunal held that section 167B(1) specifically excludes societies registered under the Societies Registration Act from its ambit. Relying on CBDT Circular No. 320 dated 11-01-1982 and the decisions in National Association of Interlocking Surgeons v. ITO (E), Air Force Navy Farm Owners v. ITO, Anand Educational Society v. ITO, Sri Lakshmiganapathi Seva Samithi v. CIT, and KMR Educational Society v. ACIT, the Tribunal observed that registered societies are prohibited from distributing surplus amongst their members and, therefore, the question of determination of members’ shares does not arise. Consequently, the income of such societies cannot be subjected to Maximum Marginal Rate merely because the members’ shares are indeterminate. The Assessing Officer was directed to compute the tax at the normal rates applicable to an Association of Persons, and the appeal of the assessee was allowed. (ITA No. 608/PUN/2026, dt 22-07-2026. (AY. 2024-25 )