Assessee, an Association of Persons (AOP), was a joint venture between TPL and Chint. Assessing Officer applying tax rate of 40 per cent on entire taxable income instead of 30 per cent offered by assessee on reasoning that one of members of AOP; being foreign company, whose income was above taxable limit, was paying tax at rate of 40 per cent. CIT(A) up held the order of the AO. On appeal the Tribunal held that\u00a0 since assessee had clearly mentioned in its ITR that members\u2019 share in AOP\u2019s profit was determinate i.e., TPL 99.99 per cent and Chint 0.01 per cent, since TPL is\u00a0 domestic company and Chint was a Chinese company, 99.99 per cent of income of TPL is\u00a0 to be taxed at maximum marginal rate (MMR) of 30 per cent plus surcharge and cess and 0.01 per cent of income of Chint at MMR of 40 per cent plus surcharge and cess. (AY. 2019-20)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 167B : Charge of tax-Shares of members unknown-Maximum marginal rate-Association of persons-Joint venture between TPL and Chint-Share in AOP\u2019s profit is determinate i.e., TPL 99.99 per cent and Chint 0.01 per cent-TPL is domestic company and Chint was a Chinese company, 99.99 per cent of income of TPL is to be taxed at maximum marginal rate (MMR) of 30 per cent plus surcharge and cess and 0.01 per cent of income of Chint at MMR of 40 per cent plus surcharge and cess. [S. 2(31)(v)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50628","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-daA","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=50628"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50628\/revisions"}],"predecessor-version":[{"id":50629,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50628\/revisions\/50629"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}