Sorathiya Bramha Kshtriya Samaj vs. ITO

Parties Involved

Facts Summary

The assessee, Sorathiya Bramha Kshtriya Samaj, a charitable organization, filed an appeal against the order of the Additional Commissioner of Income Tax (Appeals) which upheld the application of the Maximum Marginal Rate (MMR) of tax under section 167B of the Income Tax Act, 1961. The assessee argued that it should be taxed at the normal tax rate applicable to Association of Persons (AOP) as it is a charitable organization and not an entity where the shares of members are indeterminate. The assessee filed a rectification application under section 154 of the Act, which was rejected. The assessee further argued that the decision of the Coordinate Bench of Pune Tribunal in the case of Fajle Rabbi Chand Charitable Trust should be applied to its case.…

Legal Issues

• 1. Whether the income of the assessee is chargeable to Normal Tax rates or the Maximum Marginal Tax rates.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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