SAMAJ SAHYOGI SANSTHA,JAIPUR vs. INCOME TAX OFFICER, JAIPUR

ITA 126/JPR/2026Status: DisposedITAT Indore06 October 2026AY 2024-20259 pages
AI SummaryAllowed

What were the facts?

The assessee, Samaj Sahyogi Sanstha, an Association of Persons (AOP) registered as a society, filed its return of income for Assessment Year (AY) 2024-25 declaring a total income of Rs. 1,71,260/-. The assessee claimed the benefit of the basic exemption limit under Section 115BAC of the Income Tax Act, 1961, as its income was below Rs. 3,00,000/-. The Central Processing Centre (CPC) processed the return under Section 143(1) accepting the income but denied the basic exemption, computing tax liability at the Maximum Marginal Rate (MMR) and levying Rs. 59,870/- (including interest). The assessee appealed to the Commissioner of Income Tax (Appeals) [CIT(A)], who upheld the CPC's action, citing indeterminate shares of members and invoking Section 167B. The assessee further appealed to the Income Tax Appellate Tribunal (ITAT).

What did the Tribunal hold?

The Tribunal held that the denial of the basic exemption to the assessee under Section 115BAC was incorrect and unjustified. The CIT(A)'s reasoning was based solely on the indeterminate shares of members, leading to the application of Section 167B and MMR. However, the Tribunal noted that the CPC's intimation itself, as reproduced in the CIT(A)'s order, indicated that the assessee had not opted out of the new tax regime under Section 115BAC(6). The Tribunal found no reasoning from the department for denying the benefit of basic exemption. Furthermore, it was admitted that the same benefit was allowed to the assessee by the CPC in the preceding and succeeding assessment years (AY 2023-24 and AY 2025-26) under identical circumstances. Since the assessee's income (Rs. 1,71,260/-) was below the exemption limit of Rs. 3,00,000/- under Section 115BAC, and no taxable income existed, the denial of the basic exemption was held to be erroneous. The Tribunal directed the CPC to allow the benefit of basic exemption to the assessee. Consequently, there was no tax liability for the impugned year.

What were the issues?

1. Whether the assessee, an AOP, is entitled to the basic exemption limit under Section 115BAC of the Income Tax Act, 1961, despite the CIT(A)'s finding that the shares of members were indeterminate, thereby invoking Section 167B for taxation at MMR? Assessee's contentions: - The assessee, being a registered society with objects of public benefit, is eligible for the basic exemption limit under Section 115BAC as its total income is below Rs. 3,00,000/-. - The CIT(A) erred in upholding the CPC's action of denying the basic exemption and taxing at MMR. - The assessee's returns for AY 2023-24 and AY 2025-26 were processed identically by the CPC, allowing the basic exemption, despite similar entries regarding member shares. - The CIT(A) failed to follow CBDT Circular No. 320 dated 11.01.1982 and CBDT Circular No. 14 dated 11.04.1955. - The levy of tax and interest amounting to Rs. 59,870/- is illegal. Revenue's contentions: - The Ld. DR supported the order of the Ld. CIT(A).

Which sections of the Income-tax Act were involved?

Section 115BAC,Section 167B,Section 250,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, “SMC” BENCH, JAIPUR

Before: SMT. ANNAPURNA GUPTA

Hearing: 16.07.2026Pronounced: 06.10.2026

The present appeal has been filed by the assessee against the order passed by the Office of the Commissioner of Income Tax, Appeal Addl/JCIT(A), Kochi (hereinafter referred to as “Ld. CIT(A)”), dated 26.11.2025 u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

The grounds raised by the assessee read as under:-

1.

The learned Commissioner of Income Tax (Appeals) CIT(A) / National Faceless Appeal Centre has erred in law and on facts in upholding the action of the CPC /Assessing Officer in invoking Section 167B of the Income-tax Act, 1961, denying the P a g e | 2 Samaj Sahyogi Sanstha Rate (MMR), despite the Appellants total income being below the basic exemption Marginal limit of Rs 3,00,000 under

The order continues below.

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