KALAVIKAS KENDRA,CUTTACK vs. ITO, EXEMPTION, CUTTACK

In reply, ld. Sr. DR submitted that the assessee has an option to file application for condonation of delay in filing Form 10B. It was the submission that liberty may be granted to the assessee to file application for condonation of delay in filing Form 10B of the Act. 4. We have considered the rival submissions. When the assessee has not complied with the requirement of the Act being not filed Form 10B of the Act if an intimation u/s.143(1) is to be issued, then obviously the income of the assessee would be treated as business income and his business income is liable to be assessed. Non-filing of Form 10B would lead to non- granting of the exemption as required u/s.11 & 13 r.w.s.12A of the Act. In both the appeals of the assessee, it is noticed that the CPC has not assessed assessee’s business income but has brought to tax the entire receipts as the total income of the assessee. This is not permissible in an intimation issued u/s.143(1) of the Act. This being so, the intimation issued u/s.143(1) of the Act is bad in law and does not fall within the adjustments as prescribed u/s.143(1) of the Act. Consequently, the intimation issued u/s.143(1) for both the assessment years under consideration is hereby quashed. 5. In the result, both appeals of the assessed are allowed. Order dictated and pronounced in the open court on 11/08/2025. Sd/- Sd/- (राजेश कुमार) (जाजज माथन) (RAJESH KUMAR) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 11/08/2025 Prakash Kumar Mishra, Sr.P.S.