CHAIR LITERARY TRUST,,UKHRA, PASCHIM BARDHAMAN vs. I.T.O., WARD - 2(1), EXEMPTION,, DURGAPUR

Chair Literary Trust, Vivekanand Path, Dakshinayan, Ukhra, Bardhaman - 713211 [PAN: AACTC3996R] ……..…...…………….... Appellant vs. ITO Ward 2(1), Exemption, Durgapur, Aayakar Bhavan, City Centre, Durgapur - 713216 ................................. Respondent Appearances by: Assessee represented by : Prasenjeet Ram, A.C.A Department represented by : Raja Sengupta, CIR-DR Date of concluding the hearing : 07.07.2025 Date of pronouncing the order : 09.07.2025 O R D E R

PER SANJAY AWASTHI, ACCOUNTANT MEMBER

1.2 In this case, the assessee had approached the Ld. Addl./JCIT(A) with the grievance that the Ld. AO-CPC had passed an order u/s 143(1) of the Act through which the entire quantum of receipts of Rs. 18,41,785/- had been brought to tax since the Form 10B had not been filed along with return of income. Admittedly, the assessee-trust obtained registration u/s 12AA of the Act on 02.09.2019, w.e.f. AY 2020-21. Thus, for the year under consideration, there was no registration available with the assessee for seeking exemption. The Ld. Addl./JCIT(A) has given the following findings while dismissing appeal of the assessee:

Chair Literary Trust “6.1.5 It is evident that the appellant had not filed Form 10B after due date in violation of Rule 12A(1)(b) of Income Tax Rules, 1962. It is a trite law that if a thing is said to be done in a particular manner, it shall be done in that manner and its performance in any other mode or fashion shall be of no consequence. Therefore, in application of the above decisions of the apex court and also the mandated provisions of the statute, the Assessing Officer has rightly disallowed the exemption claimed as per the provisions of section 143(1)(a)(ii). 6.2 With regard to ground No. 2 i.e. as per appellants submission it is contested by the appellant that, when a trust is not registered u/s 12AA of the Income Tax Act, 1961, it may be assessed as an AOP/BOI under Income Tax Act, 1961. 6.2.1 It is evident that the appellant has not compiled with the conditions for applicability of sections 11 & 12 of the Act. Further, the appellant has not filed any revised return with regard to change in status of the appellant before the AO during the assessment proceedings. Hence, the appellants ground to consider it as an AOP/BOI rather than Trust during the appellate proceedings is not considered and hence dismissed. 6.2.2. Accordingly, I am not inclined to interfere with the decision of the Assessing Officer. These grounds of appeal are therefore dismissed.” 1.2 Aggrieved with this action of Ld. Addl/JCIT(A), the assessee has approached the ITAT with the grounds of appeal basically challenging the non-allowance of exemption u/s 11 of the Act, and more importantly what has been challenged is the action of bringing to tax the entire quantum of receipts, without allowing for any expenses.

2. Before us, the Ld. AR argued that even though the assessee-trust did not have the requisite exemption but still the benefit of expenses should have been given to the assessee even if it was to be assessed as an AOP. The Ld. AR assailed the action of Ld. Addl/JCIT(A) contained in paragraph 6.2.1 (supra).

2.1 The Ld. DR relied on the orders of authorities below.

Order pronounced on 09.07.2025