BHARATIYA SIKSHYA BIKASHA SANSTHANA,SIDDHARTHA NAGAR vs. ITO, AMBAPUA

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ITA 405/CTK/2025Status: DisposedITAT Cuttack13 August 2025AY 2018-19Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAJESH KUMAR (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that disallowing the entire expenditure claimed as application in an intimation under section 143(1) is not permissible. If the benefit of sections 11 & 13 is to be denied, the income should be recomputed under the head business income.

What were the facts?

The assessee, a trust, filed its return of income. The assessee's claim for exemption under sections 11 & 13 of the Income Tax Act was denied due to belated filing of Form 10B. The CPC processed the intimation under section 143(1) and brought the entire receipts to tax.

What were the issues?

Whether the denial of exemption and disallowance of expenditure in an intimation under section 143(1) is legally valid when Form 10B was filed belatedly.

Which sections of the Income-tax Act were involved?

Section 11,Section 13,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

Hearing: 13/08/2025Pronounced: 13/08/2025

आदेश / O R D E R Per Bench : These two appeals are filed by the assessee against the separate orders dated 30.05.2025 & 29.05.2025, passed by ld. Addl/JCIT(A)-3, Chennai, for the assessment years 2018-2019 & 2021-2022. 2. It was the submission of the ld. AR that the assessee is a trust which has filed its return of income on the ground that Form 10B was filed belatedly, the intimation has been issued denying the assessee benefit of the application u/s.11 & 13 of the Act. It was the submission that if at all the CPC was of the view that the Form 10B has been belatedly filed in the intimation u/s.143(1) of the Act, the entire receipts of the assessee should not be brought into tax. The income of the assessee would have to be assessed under the head business income and the expenses are liable to be allowed. This was not done by the CPC. The CPC brought to tax the entire receipts of the assessee. It was the submission that it is not permissible in an intimation u/s.143(1) of the Act.

3.

In reply, ld. Sr. DR vehemently supported the order of the ld.AO & ld. CIT(A).

4.

We have considered the rival submissions. Admittedly the assessee is a trust and filed its return of income as an AOP trust. If the benefit of Section 11 & 13 of the Act is to be denied to the assessee then obviously the income should be recomputed under the head business income. Disallowing the entire expenditure which has been claimed by the assessee as application, is not permissible in an intimation u/s.143(1) of the Act and the same is also not provided in the provisions of Section 143(1) of the Act. This being so, we are of the view that the intimation issued u/s.143(1) of the Act in both the appeals under consideration is bad in law and consequently we quash the same.

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