SORATHIYA BRAMHA KSHTRIYA SAMAJ,AKOLA vs. ITO WARD 2, EXEMP, NAGPUR, NAGPUR

ITA 187/NAG/2026Status: DisposedITAT Nagpur11 September 2026AY 2017-201814 pages
AI SummaryAllowed

What were the facts?

The assessee, a non-profit organization, was taxed at the Maximum Marginal Rate (MMR) by the CPC. The assessee contended that it should be taxed at the normal rate applicable to an Association of Persons (AOP) as it serves the public at large.

What did the Tribunal hold?

The Tribunal held that Section 167B of the Income Tax Act, which prescribes the MMR, is not applicable to charitable trusts serving the public at large. Therefore, the assessee's income should be taxed at the normal rates applicable to AOPs.

What were the issues?

Whether the income of a charitable trust serving the public at large is chargeable to tax at the Maximum Marginal Rate (MMR) or at the normal rate applicable to an Association of Persons (AOP).

Which sections of the Income-tax Act were involved?

Section 167B,Section 154,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR SMC BENCH, NAGPUR

Before: SHRI MANISH BORAD

For Appellant: Shri Rohan Loya, CA
For Respondent: Shri Shiv Shankar Yadav, Sr.DR
Hearing: 30/07/2026Pronounced: 11/09/2026

This appeal by the assessee is directed against the order of Ld. ADDL/JCIT (Appeals)-2, Bengaluru (for short, “CIT(A)”) dated 07.01.2026 passed u/sec. 250 of the Income Tax Act, 1961 (for short, “Act”) which is arising out of rectification order dated 21.06.2022 passed u/sec. 154 of the Act by the ITO, Ward-3, Akola for the Assessment Year (A.Y.) 2017-18. 2. The only grievance of the assessee is that Ld.CIT(A) erred in confirming the action of Centralized Processing Center (CPC) applying Maximum Marginal Rate of tax (MMR) u/sec. 167B of the Act.

3.

At the outset, learned counsel for the assessee submitted that assessee-society is a non-profit organisation and that none of its members is a beneficiary of the society. He submitted that the beneficiaries are the public at

The order continues below.

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