MAHARAJA AGRASEN TRUST,BHADRAK vs. INCOME TAX OFFICER, BHADRAK

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ITA 146/CTK/2025Status: DisposedITAT Cuttack23 September 2025AY 2023-243 pages
AI SummaryN/A

What did the Tribunal hold?

The Tribunal held that taxing the entire gross receipts of a registered charitable trust as income under section 143(1) is not permissible. Adjustments under section 143(1) are limited, and treating the application of income as disallowable under this section is erroneous and unsustainable. Consequently, the intimation issued by the CPC was quashed.

What were the facts?

Maharaja Agrasen Trust, a charitable institution registered under section 12A, filed its income tax return. The CPC, in an intimation under section 143(1), disallowed the application of Rs.7,93,988/-, which the assessee contended was impermissible under section 143(1) as it does not allow for disallowance of application of income.

What were the issues?

Whether the CPC can disallow the application of income of a charitable trust while issuing an intimation under section 143(1) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 12A,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SMC BENCH CUTTACK

Before: SHRI GEORGE MATHAN

आयकर अपीलीय अिधकरण, "एस.एम.सी" ᭠यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL "SMC" BENCH CUTTACK

(THROUGH VIRTUAL HEARING)

᮰ी जाजᭅ माथन, ᭠याियक सद᭭य केसमᭃ । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER

आयकर अपील सं/ITA No.146/CTK/2025 (िनधारणᭅ वष / ᭅ Assessment Year : 2023-2024)

Maharaja Agrasen Trust Kantapala, Charampa, Bhadrak, 756101 | Vs | ITO, Bhadrak PAN No. : AADTM 5824 D (अपीलाथᱮ /Appellant) | (ᮧ᭜यथᱮ / Respondent) से /Assessee by िनधाᳯᭅरती कᳱ ओर | : | Shri Anil Kumar Agrawala, AR राज᭭व कᳱ ओर से /Revenue by | : | Shri Vijay Singh, Sr. D.R. / Date of Hearing सुनवाई कᳱ तारीख | : | 23/09/2025 तारीख/Date of Pronouncement घोषणा कᳱ | : | 23/09/2025

आदेश / O R D E R

This is an appeal filed by the assessee against the order of the Addl/JCIT(A)-1, Guwahati dated 21/01/2025 passed in Appeal No. ADDL/JCIT(A)-1 GUWAHATI/10048/2022-23 for the assessment year 2023-2024.

2.

It was submitted by the Ld.AR that the assesee is a charitable institution and trust. The assesee has registration under section 12(A) of the Act vide an order dated 09.01.2014. The assesee had filled its return of income declaring a net income of Rs.14,112/- as net income. The gross receipts of the assesee was Rs.8,08,100/-. The application of Rs.7,93,988/- had not been allowed by the CPC in the intimation issued under section 143(1)of the Act. It was the submission that the intimation

ITA No.146/CTK/2025

issued under section 143(1) of the Act is invalid in sofaras the provisions

of section 143(1) of the Act does not provide for disallowance of the

application. It was the submission that the intimation as issued may be

quashed.

3.

In reply, the Ld. Sr.DR, vehemently supported the order of the CPC,

and the Ld. JCIT(Appeals).

4.

I have considered the rival submissions. A perusal of the facts of

the present case clearly shows that the CPC has brought to tax the entire

gross receipt of the assesee as its income. The assesee admittedly is

registered as a charitable trust. This being so in the event that the CPC

desires to make any adjustments in the intimation issued under section

143(1) of the Act it was only possible in respect of such adjustments which

are permissible in the intimation under section 143(1) of the Act. This Act

of treating the entire receipts of the assesee as the income of the assesee

is not permissible. This being so the intimation issued under section

143(1) of the Act being erroneous and unsustainable stands quashed.

5.

In the result, appeal of the assesee is allowed.

Order dictated and pronounced in the open court on 23/09/2025.

Sd/-

(जाजᭅ माथन)

(GEORGE MATHAN)

᭠याियक सद᭭य / JUDICIAL MEMBER

ᳰदनांक Dated 23/09/2025

Prakash Kumar Mishra, Sr.P.S

आदेश कᳱ ᮧितिलिप अᮕिेषत/Copy of the Order forwarded to :

- 1. अपीलाथŎ / The Appellant- Maharaja Agrasen Trust Kantapala, Charampa, Bhadrak, 756101 - 2. ŮȑथŎ / The Respondent- ITO, Bhadrak - 3. आयकर आयुƅ(अपील) / The CIT(A), - 4. आयकर आयुᲦ / CIT - 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, कटक / DR, ITAT, Cuttack - 6. गाडᭅफाईल / Guard file.

स᭜यािपत ᮧित //True Copy//

आदेशानसु ार/ BY ORDER,

(Assistant Registrar) आयकर अपीलीय अिधकरण, कटक/ITAT, Cuttack

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