Section 167B of the Income Tax Act

Income-tax Act, 2025: s.311

Section 167B of the Income-tax Act, 1961 corresponds to section 311 (Charge of tax where shares of members in association of persons or body of individuals unknown, etc) of the Income-tax Act, 2025.

Read section 311 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 167B is CIT v. K. Srinivasan (83 ITR 346), cited in 129 of the 178 judgments on BharatTax that turn on this section.

Leading authorities on Section 167B

CIT v. K. Srinivasan
83 ITR 346 · 1972 · Supreme Court
129
citing judgments

The term 'tax' includes surcharge and cess. Surcharge and additional surcharge are considered components of income tax, which can be levied as a basic charge, surcharge, special surcharge, and additional surcharge.

CWT v. Trustees of H.E.H. Nizam’s
108 ITR 555 · 1977 · Supreme Court
46
citing judgments

Where the shares of beneficiaries in a trust are determinate, trustees must be assessed separately for each beneficiary's share, treating each beneficiary as an individual. The income is then taxed at the marginal rate applicable to individuals, not at the maximum rate for an association of persons.

CIT v. Sae Head Office Monthly Paid Employees Welfare Trust
271 ITR 159 · 2004 · High Court
30
citing judgments

Beneficiaries of a trust do not set up the trust, and trustees derive authority from the trust deed, meaning neither trustees nor beneficiaries form an association for a common purpose solely due to their existence.

CIT v. Shree Krishna Bandar Trust
247 ITR 1 · 2001 · High Court
23
citing judgments

An Assessing Officer can rectify a mistake apparent from the record under Section 154 if the assessee is erroneously taxed at individual rates when it should have been taxed as an AOP.

Araadhya Jain Trust v. ITO
173 Taxmann.com 343 · 2025 · ITAT
22
citing judgments

The definition of maximum marginal rate under section 2(29C) can be interpreted to determine the applicable surcharge rates, particularly for income including dividends, as per the First Schedule to the Finance Act. This affects how surcharge is calculated on taxable income.

ITO v. Tayal Sales Corporation
1 SOT 579 · 2003 · ITAT
18
citing judgments

The maximum marginal rate (MMR) of income tax is applied, and surcharge is levied separately if applicable. Surcharge is not leviable if the quantum of income is below a certain threshold.

Bajaj Auto Finance Ltd. v. CIT
404 ITR 564 · 2018 · High Court
15
citing judgments

Adjustments under section 143(1)(a) of the Income-tax Act, 1961, cannot be made for issues where divergent views are possible or the issue is debatable. Such adjustments are permissible only for clear mistakes apparent from the record.

Madhukar C. Ashar v. Union of India
239 Taxmann 367 · 2016 · High Court
11
citing judgments

The principle of consistency must be followed in assessments when there is no change in circumstances.

CIT v. CV Divakaran Family Trust
122 Taxmann 405 · 2002 · High Court
9
citing judgments
JKs Employees Welfare Fund v. ITO
199 ITR 765 · 1993 · High Court
9
citing judgments

Judgments on Section 167B

Manjar Discretionary Family Trust, Rajkot vs. ITO Ward 1(1)(1), Rajkot

ITA 164/RJT/2025[2024-25]Status: DisposedITAT Rajkot15 Oct 2025AY 2024-25
Section 143(1)Section 164Section 244A

Jasmina Trust, New Delhi vs. Deputy Commissioner of Income Tax, New Delhi

The appeals are allowed with event to follow accordingly

ITA 2211/DEL/2025[2023-24]Status: DisposedITAT Delhi12 Sept 2025AY 2023-24

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharma

For Appellant: Smt. Vasanti Patel, AdvocateFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 11Section 12ASection 143(1)Section 167(1)Section 167BSection 234C

Jasmina Trust, New Delhi vs. Deputy Commissioner of Income Tax, New Delhi

ITA 2210/DEL/2025[2022-23]Status: DisposedITAT Delhi12 Sept 2025AY 2022-23

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharma

For Appellant: Smt. Vasanti Patel, AdvocateFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 11Section 12ASection 143(1)Section 167(1)Section 167BSection 234C

Jasmina Trust, New Delhi vs. Deputy Commissioner of Income Tax, New Delhi

ITA 2209/DEL/2025[2021-22]Status: DisposedITAT Delhi12 Sept 2025AY 2021-22

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharma

For Appellant: Smt. Vasanti Patel, AdvocateFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 11Section 12ASection 143(1)Section 167(1)Section 167BSection 234C

Mall of Jaipur Owners Welfare Association, Jaipur vs. DCIT, Circle-6, Jaipur

In the result, appeal of the assessee is allowed

ITA 333/JPR/2025[2024-25]Status: DisposedITAT Jaipur11 Sept 2025AY 2024-25

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Rohan Mittal, AdvFor Respondent: Shri Gautam Singh Choudhary, JCIT a
Section 139(1)Section 143(1)Section 250

Shri Rampurush Mandir Society, Cuncolim vs. Assistant Director of Income Tax - CPC, Bangalore

ITA 76/PAN/2025[2022-23]Status: DisposedITAT Panaji26 Aug 2025AY 2022-23

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliita Nos. 75 & 76/Pan/2025 Assessment Year : 2021-22 & 2022-23 Shri Rampurush Mandir Society Veroda, Cuncolim, Salcete, Goa-403703. Pan : Aadas9268E . . . . . . . Appellant V/S Asstt. Director Of Income Tax, Cpc, Bengaluru. . . . . . . . Respondent Appearances Assessee By : Mr Narcinva Lotlikar [‘Ld. Ar’] Revenue By : Mr Ish Gupta [‘Ld. Dr’] Date Of Conclusive Hearing : 25/08/2025 Date Of Pronouncement : 26/08/2025 Order Per G. D. Padmahshali; The Twin Appeals Of The Appellant Assessee Impugns Separate Din & Orders Both Dt. 10/03/2025 Passed By The Addl./Jt. Commissioner Of Income Tax, Appeals(2), Kolkata [‘Ld. Cit(A)/Nfac’ Hereinafter] U/S 250 Of The Income-Tax Act, 1961 [‘The Act’ Hereinafter] Which In Turn Emanated Out Of Respective Summary Assessment Dt. 23/09/2022 & 16/03/2023 Passed U/S 143(1) Of The Act By The National Faceless E-Asstt Centre [‘Ld. Ao’ Hereinafter] Anent To Assessment Years 2021- 22 & 2022-23 [‘Ays’ Hereinafter].

For Appellant: Mr Narcinva Lotlikar [‘Ld. AR’]For Respondent: Mr Ish Gupta [‘Ld. DR’]
Section 143(1)Section 164Section 167BSection 2Section 246ASection 250

Shri Rampurush Mandir Society, Cuncolim vs. Assistant Director, CPC, Bangalore

ITA 75/PAN/2025[2021-22]Status: DisposedITAT Panaji26 Aug 2025AY 2021-22

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliita Nos. 75 & 76/Pan/2025 Assessment Year : 2021-22 & 2022-23 Shri Rampurush Mandir Society Veroda, Cuncolim, Salcete, Goa-403703. Pan : Aadas9268E . . . . . . . Appellant V/S Asstt. Director Of Income Tax, Cpc, Bengaluru. . . . . . . . Respondent Appearances Assessee By : Mr Narcinva Lotlikar [‘Ld. Ar’] Revenue By : Mr Ish Gupta [‘Ld. Dr’] Date Of Conclusive Hearing : 25/08/2025 Date Of Pronouncement : 26/08/2025 Order Per G. D. Padmahshali; The Twin Appeals Of The Appellant Assessee Impugns Separate Din & Orders Both Dt. 10/03/2025 Passed By The Addl./Jt. Commissioner Of Income Tax, Appeals(2), Kolkata [‘Ld. Cit(A)/Nfac’ Hereinafter] U/S 250 Of The Income-Tax Act, 1961 [‘The Act’ Hereinafter] Which In Turn Emanated Out Of Respective Summary Assessment Dt. 23/09/2022 & 16/03/2023 Passed U/S 143(1) Of The Act By The National Faceless E-Asstt Centre [‘Ld. Ao’ Hereinafter] Anent To Assessment Years 2021- 22 & 2022-23 [‘Ays’ Hereinafter].

For Appellant: Mr Narcinva Lotlikar [‘Ld. AR’]For Respondent: Mr Ish Gupta [‘Ld. DR’]
Section 143(1)Section 164Section 167BSection 2Section 246ASection 250

Sree Sree Lachhminarain Jew Ramchandra Jew Shambsada Shew Jew, Kolkata vs. ITO, Ward 37(1), Kolkata

In the result, the appeal filed by the assessee is allowed

ITA 366/KOL/2025[2024-2025]Status: DisposedITAT Kolkata25 Aug 2025AY 2024-2025

Bench: Shri Duvvuru RL Reddy (Vice President)

Section 11Section 143(1)Section 167B

Pradyumna Dalmia Beneficiary Trust, Kolkata vs. ADIT(CPC)/I.T.O., Ward - 33(2), Kolkata

In the result, both the appeals filed by the assessee are allowed

ITA 1613/KOL/2024[2021-2022]Status: DisposedITAT Kolkata11 Aug 2025AY 2021-2022

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 143(1)Section 250

Rose Trust, Delhi vs. DCIT, Circle-49(1), Delhi

Appeal is allowed

ITA 3036/DEL/2024[2021-22]Status: DisposedITAT Delhi05 Aug 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwalassessment Year: 2021-22

Section 11Section 143(1)Section 143(1)(a)Section 167BSection 234C

Estate of Nalini Manilal, Mumbai vs. ITO Ward 20(1)(1), Mumbai

In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes

ITA 2412/MUM/2025[2024-25]Status: DisposedITAT Mumbai31 Jul 2025AY 2024-25

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2024-25 Estate Of Nalini Manilal, Ito 20(1)(1), 57, Naiman Bhavan, Vinay Shah Piramal Chambers, Vs. Marg, Nariman Point, S.O. Mumbai-400012. Mumbai-400021. Pan No. Aaaae 0475 E Appellant Respondent

For Appellant: Mr. Asif Karmali, Sr. DRFor Respondent: Mr. Bhupendra Shah, CA
Section 168Section 168(1)Section 168(1)(b)Section 168(2)

Satish Narayan Tarale, Belgavi vs. Intl.Taxation Ward, Panaji

ITA 55/PAN/2025[2019-20]Status: DisposedITAT Panaji24 Jul 2025AY 2019-20

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliita Nos. 055/Pan/2025 Assessment Year : 2019-20 Satish Narayan Tarale 35, Laxmi Narayan Niwas, 2Nd Stage, Hanuman Nagar, Belgaum-590001. Pan : Afkpt0032Q . . . . . . . Appellant V/S The Income Tax Officer, International Taxation Ward, Panaji, Goa. . . . . . . . Respondent Appearances Assessee By : Mr Pramod Vaidya [‘Ld. Ar’] Revenue By : Capt. Pradeep Arya [‘Ld. Dr’] सुनवाई की तारीख / Date Of Conclusive Hearing : 11/06/2025 घोषणा की तारीख / Date Of Pronouncement : 24/07/2025 Order Per G. D. Padmahshali; The Captioned Appeal Is Filed By The Assessee Challenges Din & Order No Itba/Ast/F/144/2024- 25/1072202908(1) Dt. 15/01/2025 Passed By The Income Tax Officer, International Taxation Ward, Panaji Goa [‘Ld. Ao’] U/S 144 R.W.S. 144C(13) Of The Income-Tax Act, 1961 [‘The Act’] Anent To Assessment Year 2019-20 [‘Ay’].

For Appellant: Mr Pramod Vaidya [‘Ld. AR’]For Respondent: Capt. Pradeep Arya [‘Ld. DR’]
Section 115BSection 139(1)Section 144Section 144C(1)Section 148Section 253(6)Section 3Section 4Section 6(6)Section 69A

Vindhya Trust, New Delhi vs. Deputy Commissioner of Income Tax, New Delhi

In the result, the appeal filed by the assessee is allowed

ITA 131/DEL/2025[2021-22]Status: DisposedITAT Delhi23 Jul 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanvindhya Trust, Vs. Dcit, Circle 49 (1), B – 60/61, C/O Bajaj Auto Limited, Delhi. Naraina Industrial Estate, Delhi – 110 028. (Pan : Aaatv0303K) (Appellant) (Respondent) Assessee By : Shri Mahender Gohel, Ca Revenue By : Shri Ramesh Chand, Sr. Dr Date Of Hearing : 13.05.2025 Date Of Order : 23.07.2025 O R D E R Per S.Rifaur Rahman: 1. This Appeal Is Filed By The Assessee Against The Order Of Ld. Addl/Joint Commissioner Of Income-Tax (Appeals) – 3, Hyderabad [Hereinafter Referred To As ‘Ld. Jcit (A)] Dated 12.11.2024 For Assessment Year 2021-22 Raising Following Grounds Of Appeal :- “Ground 1 - Rate Of Tax: The Learned Commissioner Of Income Tax (Appeals) [Cit(A)] Has Erred In Upholding Levy Of Tax At Flat Rate Of30%, Instead Of Normal Slab Rates Applicable In The Case Of The Appellant. The Learned Cit(A) & The Learned Assessing Officer Failed To Appreciate That The Appellant Is An Association Of Persons (Aop)/Charitable Trust Not Claiming Benefits Of Section 11 Of The Act & Is Liable To Pay Tax At The Slab Rates Applicable In The Case Of An Individual, Etc. The Appellant Prays That The Learned Assessing Officer Be Directed To Re-Compute

For Appellant: Shri Mahender Gohel, CAFor Respondent: Shri Ramesh Chand, Sr. DR
Section 11Section 143(1)Section 167BSection 234BSection 234C

Rajiv Trust, Mumbai vs. Deputy Commissioner of Income Tax, Mumbai

In the result, the appeal of the assessee is allowed

ITA 161/MUM/2025[2022-23]Status: DisposedITAT Mumbai15 Jul 2025AY 2022-23

Bench: Shri Pawan Singh& Ms. Padmavathy S

Section 111ASection 12ASection 143(1)Section 2Section 234CSection 254(1)

Rajiv Trust, Mumbai vs. Deputy Commissioner of Income Tax, Mumbai

In the result, the appeal of the assessee is allowed

ITA 160/MUM/2025[2023-24]Status: DisposedITAT Mumbai15 Jul 2025AY 2023-24

Bench: Shri Pawan Singh& Ms. Padmavathy S

Section 111ASection 12ASection 143(1)Section 2Section 234CSection 254(1)

Anil Gala Navneet Trust, Mumbai vs. Income Tax Officer Ward 22(1)(6), Mumbai

In the result, the appeal filed by the assessee is hereby allowed

ITA 2951/MUM/2025[2022-23]Status: DisposedITAT Mumbai02 Jul 2025AY 2022-23

Bench: Shri Sandeep Gosain & Shri Om Praksh Kantanil Gala Navneet Trust Vs Income Tax Cpc, Bengaluru Navneet Bhavan, Bhavani Shankar Road, Nr. Shardashram Society, Dadar (West), Mumbai-400 028 Pan : Aada5826D Appellant Respondent

For Appellant: Shri Sanjay ParikhFor Respondent: Shri Pravin Salunkhe – (SR. DR.)
Section 143(1)Section 164Section 2Section 234Section 250

Bhagirathi Enterprise, Vile Parle West Mumbai vs. Income Tax Officer Ward 34(1)(1), Bandra East Mumbai

In the result, the appeal filed by the assessee for the AY

ITA 3130/MUM/2025[2023-24]Status: DisposedITAT Mumbai27 Jun 2025AY 2023-24

Bench: Shri Vikram Singh Yadav & Ms. Kavitha Rajagopal

For Appellant: Shri Anant N. Pai, CAFor Respondent: Shri Leyaqat Ali Aafaqui
Section 143Section 143(1)Section 154Section 167BSection 2

Bhagirathi Enterprise, Vile Parle West Mumbai vs. Income Tax Officer, Ward 34(1)(1), Mumbai Bandra East

In the result, the appeal filed by the assessee for the AY

ITA 3129/MUM/2025[2022-23]Status: DisposedITAT Mumbai27 Jun 2025AY 2022-23

Bench: Shri Vikram Singh Yadav & Ms. Kavitha Rajagopal

For Appellant: Shri Anant N. Pai, CAFor Respondent: Shri Leyaqat Ali Aafaqui
Section 143Section 143(1)Section 154Section 167BSection 2

Bhagirathi Enterprise, Vile Parle West Mumbai vs. ITO Ward 34(1)(1), Bandra East Mumbai

ITA 3128/MUM/2025[2021-22]Status: DisposedITAT Mumbai27 Jun 2025AY 2021-22

Bench: Shri Vikram Singh Yadav & Ms. Kavitha Rajagopal

For Appellant: Shri Anant N. Pai, CAFor Respondent: Shri Leyaqat Ali Aafaqui
Section 143Section 143(1)Section 154Section 167BSection 2

Hreyansh Vasundhara Family Trust, Pune vs. Income Tax Officer, Ward-7(1), Pune

In the result, the appeal of the assessee is allowed

ITA 1793/PUN/2024[2021-22]Status: DisposedITAT Pune26 Jun 2025AY 2021-22

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita No.1793/Pun/2024 निर्धारण वर्ष / Assessment Year : 2021-22 Hreyansh Vasundhara Family Trust, S. No. 1A, F-1, Irani Market Compound, Yerwada, Pune – 411006 Vs. Ito, Ward-7(1), Pune Pan : Aabth8220Q अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee By : Shri C.H. Naniwadekar Department By : Shri Ramnath P. Murkunde Date Of Hearing : 18-06-2025 Date Of Pronouncement : 26-06-2025 आदेश / Order Per Astha Chandra, Jm : The Appeal Filed By The Assessee Is Directed Against The Order Dated 18.07.2024 Of The Ld. Additional/Joint Commissioner Of Income Tax (Appeals)-2, Vadodara [“Addl./Jcit(A)"] Pertaining To Assessment Year ("Ay") 2021-22. 2. The Assessee Has Raised The Following Grounds Of Appeal : "In The Fact & The Circumstances Of The Case & In Law, The Learned Addl/Joint Commissioner Of Income-Tax (Appeals) -(A)2 Vadodara, Erred In Confirming The Variance In The Intimation U/S 143(1) Made By Cpc In Respect Of The Rate Of Surcharge & Erred: 1. In Not Adjudicating & Hence Confirming That The Ao Cpc Has Power To Vary The Rate Of Surcharge While Processing The Return U/S 143(1). 2. In Holding That In The Case Of The Appellant Provisions Of Section 167B Rws 2(29C) Are Applicable & Therefore The Appellant Is Subjected To Taxation At The Highest Slab Of Income Tax (Including Surcharge) As Applicable For The Given Ay Which Is 37% Surcharge In The Case Of The Appellant For The Given Ay.

For Appellant: Shri C.H. NaniwadekarFor Respondent: Shri Ramnath P. Murkunde
Section 111ASection 143(1)Section 167BSection 2