THE SOCIETY OF THE POOR SISTERS OF OUR LADY,MUMBAI vs. DCIT - EXEM. CIRCLE 2, MUMBAI, MUMBAI

ITA 4236/MUM/2026Status: DisposedITAT Mumbai09 September 202615 pages
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What were the facts?

The assessee, a public charitable trust, was assessed by the AO by invoking Section 167B of the Income Tax Act and taxing its income at the maximum marginal rate. The CIT(A) confirmed this action.

What did the Tribunal hold?

The Tribunal held that Section 167B is not applicable to public charitable trusts, as it is intended for associations of persons where individual shares are indeterminate. The income should be taxed at normal rates.

What were the issues?

Whether Section 167B of the Income Tax Act, which mandates taxation at the maximum marginal rate, is applicable to a public charitable trust. Whether the CIT(A) erred in confirming the AO's action.

Which sections of the Income-tax Act were involved?

Section 167B,Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI PRABHASH SHANKAR

Pronounced: 09/09/2026

PER SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER:

This appeal is filed by the assessee against the order of the learned Additional/Joint Commissioner of Income Tax (Appeals)-1, Bangalore, [“Ld. CIT(A)”], dated 09.03.2026 for the assessment year 2016-17. ITA 4236/MUM/2026 THE SOCIETY OF THE PO

The order continues below.

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