Section 167B of the Income Tax Act

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.

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.

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.

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.

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.

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.

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.

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