{"id":62649,"date":"2026-07-26T06:51:56","date_gmt":"2026-07-26T01:21:56","guid":{"rendered":"https:\/\/itatonline.org\/digest\/merchant-association-v-ito-pune-trib-www-itatonline-org\/"},"modified":"2026-07-26T06:51:56","modified_gmt":"2026-07-26T01:21:56","slug":"merchant-association-v-ito-pune-trib-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/merchant-association-v-ito-pune-trib-www-itatonline-org\/","title":{"rendered":"Merchant Association v. ITO ( Pune )( Trib) www.itatonline.org"},"content":{"rendered":"<div>\n<p>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 <strong data-start=\"1045\" data-end=\"1113\">National Association of Interlocking Surgeons v. ITO (E)<\/strong><b>, <\/b><strong data-start=\"1115\" data-end=\"1152\">Air Force Navy Farm Owners v. ITO<\/strong><b>, <\/b><strong data-start=\"1154\" data-end=\"1190\">Anand Educational Society v. ITO<\/strong><b>, <\/b><strong data-start=\"1192\" data-end=\"1236\">Sri Lakshmiganapathi Seva Samithi v. CIT<\/strong><b>, <\/b>and <strong data-start=\"1242\" data-end=\"1277\">KMR Educational Society v. ACIT<\/strong>, the Tribunal observed that registered societies are prohibited from distributing surplus amongst their members and, therefore, the question of determination of members&#8217; shares does not arise. Consequently, the income of such societies cannot be subjected to Maximum Marginal Rate merely because the members&#8217; 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. (<strong>ITA No. 608\/PUN\/2026, dt 22-07-2026.<\/strong><b> <\/b>(<strong>AY. 2024-25 ) \u00a0<\/strong><b><\/b><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>S. 167B: Charge of tax &#8211; Shares of members unknown &#8211; Maximum Marginal Rate is not applicable to a society registered under the Societies Registration Act, 1860- Such a society is liable to tax at the normal rates and not at the Maximum Marginal Rate, even if the shares of its members are indeterminate. [S. 143(1), 154, 250] <\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62649","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-git","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62649","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=62649"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62649\/revisions"}],"predecessor-version":[{"id":62650,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62649\/revisions\/62650"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}