MEGHNA CHARITABLE TRUST,BHUBANESWAR vs. ITO EXEMPTION WARD, BHUBANESWAR, BHUBANESWAR
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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,
Before: BEFORE SHRI GEORGE MATHANMANISH AGARWAL
Per Bench
This is an This is an appeal filed by the assessee against the order of the ld appeal filed by the assessee against the order of the ld Addl/JCITA)-2, Gurugram dated 26.3.2024 2, Gurugram dated 26.3.2024 in Appeal No. in Appeal No.CIT(A)-, Bhubaneswar-1/10055/2020 1/10055/2020-2021 for the assessment year essment year 2018-19.
None represented on behalf of the assessee. However, an represented on behalf of the assessee. However, an represented on behalf of the assessee. However, an adjournment letter has been filed, which reads as follows: adjournment letter has been filed, which reads as follows:
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As the issue in the appeal is simple and does not need further verification of facts, the adjournment letter filed by the ld AR on behalf of the assessee is rejected and the appeal disposed off on merits. Here, it may worthwhile to mention here that on earlier occasion, when the appeal was posted for hearing, ld counsel for the assessee sought an adjournment on that date also and it was granted as final chance.
Shri S.C.Mohanty, ld Sr DR appeared for the revenue. It was put to the ld Senior DR that the appeal has been filed against the order of ld JCIT(A)-2, Gurugram, wherein, he has confirmed the intimation issued u/s
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143(1) of the Act, wherein the total receipts has been brought to tax on the ground that Form No. 10 B has been filed belatedly. In the intimation, the CPC has disallowed the entire application of income under the guise of mistake apparent from record. It was submitted by ld Sr DR that what is allowable admittedly is only expenditure required for earning the said income and what has been disallowed in the intimation is the application of the income received by the assessee. It was the submission that this was clearly a mistake apparent from record, which was permissible to be disallowed in an intimation 143 (1) of the Act. It was the further submission that the receipts as shown in the intimation was clearly voluntary contribution and, therefore, the income by the definition and as the Form No 10 B had not been filed within the stipulated time, the application of income claimed by the assessee is liable to be disallowed and has been rightly done in the intimation.
We have considered the submission of ld Sr. DR. A perusal of the facts in the present case clearly shows that the assessee has filed his return of income under the status of AOP and has claimed exemption u/s.11 and 12 of the Act. Admittedly, there is delay in filing of Form 10 B. In such circumstances, what is permissible is that the income which has been offered by the assessee on the basis of income and expenditure statement could be denied exemption u/s 11 and 12 of the Act. There is no provision for denying the entire application. Just because when the exemption u/s.
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11 and 12 of the Act is denied, the income and expenditure account of the assessee changes its form to Profit & Loss Account and it is only the income that is generated from such profit and loss account, which can be brought to tax and entire expenditure cannot be disallowed without verification or reason. The disallowance of entire application in an intimation u/s. 143(1) of the Act is an adjustment which is impermissible in an intimation u/s.143(1) of the Act. This being so, we are of the view that the adjustment as done by the CPC in the intimation us/143(1) is impressible and stand stands quashed.
In the result, appeal of the assessee allowed.
Order dictated and pronounced in the open court on 12/12/2024.
SD/- SD/- (Manish Agarwal) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 12/12/2024 B.K.Parida, SPS (OS)
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Copy of the Order forwarded to : 1. The Appellant : Meghna Charitable Trust, Plot No.N-4/208, IRC Village, Nayapali, Bhubaneswar 2. The Respondent: Income Tax Officer (Exemption) Ward, Bhubaneswar 3. The Addl/JCIT(A)-2, Gurugram 4. Pr.CIT, Bhubanswar-1. 5. DR, ITAT, 6. Guard file. //True Copy// By order
Sr.Pvt.Secretary ITAT, CUTTACK
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