SHRI NAMO NARAIN EDUCATIONAL AND CHAIRITABLE TRUST,BAREILLY vs. INCOME TAX OFFICER, EXEMPTION, BAREILLY

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ITA 272/LKW/2025Status: DisposedITAT Lucknow27 January 2026AY 2023-24Bench: SHRI ANADEE NATH MISSHRA (Accountant Member)6 pages

AI SummaryRemanded

Facts

The assessee, Shri Namo Narain Educational And Charitable Trust, filed an appeal for AY 2023-24 against adjustments made during processing under Section 143(1) of the Income Tax Act. The Centralized Processing Centre (CPC) reduced the claimed accumulation of income by Rs.16,00,000/- and disallowed a loan repayment of Rs.87,650/- as application of income. The assessee's appeal to the Addl./JCIT(A) was dismissed, leading to this appeal before the Tribunal, arguing a technical glitch in Form 10B led to incorrect reporting.

Held

The Tribunal noted the absence of the assessee's representation and, based on the Departmental Representative's submission for factual verification, remitted all issues back to the Assessing Officer (AO). The AO is directed to pass a fresh order in accordance with law after providing a reasonable opportunity to the assessee.

Key Issues

Whether the CPC's reduction of accumulation of income and disallowance of loan repayment under Section 143(1) were legally valid, especially considering the assessee's claim of a technical glitch in Form 10B and the need for factual verification.

Sections Cited

Section 143(1), Section 12A, Section 11(1)(a), Section 11(1)(b), Section 11, Section 11(1) Explanation 4 clause (ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘SMC’, LUCKNOW

Before: SHRI ANADEE NATH MISSHRA

2023-24 against impugned appellate order dated 06/02/2025 (DIN & Order No.ITBA/APL/S/250/2024- 25/1072970737(1) of Addl/Joint Commissioner of Income Tax (Appeals) [“ADDL/JCIT(A)” for short].

(B) In this case the assessee’s return of income was processed u/s 143(1) of the Act and intimation was issued to the assessee, dated 29/10/2024 by Centralized Processing Centre (“CPC” for short) of the Income Tax Assessment Year:2023-24 2 department. In the aforesaid intimation dated 29/10/2024 issued u/s 143(1) of the Act, whereby the CPC reduced the accumulation of income from Rs.73,77,534/- to Rs.57,77,534/-. A further addition of Rs.87,650/- was made in the aforesaid intimation u/s 143(1) of the I. T. Act. The assessee filed appeal against the aforesaid intimation issued u/s 143(1) of the Act, in the office of the learned CIT(A). Vide impugned appellate order dated 06/02/2025, the assessee’s appeal was dismissed. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 06/02/2025. The grounds of appeal are as under:

“1. Learned Addl./JCIT(A)-3 has erred in law and on facts in reducing the amount of accumulation of income by Rs.16,00,000/- from Rs.73,77,534/- to Rs.57,77,534/-.

Learned Addl./JCIT(A)-3 has erred in law and on facts in disallowing the repayment of loan during the year – Rs.87,650/- as application of income.”

(C) At the time of hearing before us, there was no representation from the assessee’s side. In the absence of any representation from the assessee’s side, the learned D.R. for Revenue was heard and the materials available on record were perused. In the impugned appellate order, the learned CIT(A) has observed that the assessee was given opportunity vide communication dated 08/12/2023 before making adjustment and resulting addition u/s 143(1) of the Act. However, from perusal of the order, it is not clear whether or not the opportunity given to the assessee was reasonable opportunity in the facts and circumstances of the case. Further, on merits, the statement of facts submitted by the appellant assessee is reproduced below:

Assessment Year:2023-24 5 (C.1) After some deliberations, the learned Departmental Representative submitted that the statement of facts (as referred to in foregoing paragraph (C) of this order, requires factual verification at the end of the Assessing Officer. Therefore, he submitted, the issues in dispute regarding the additions/adjustments made vide intimation u/s 143(1) of the Act be set aside to the file of the Assessing Officer. In view of the foregoing, all the issues are remitted to the file of the Assessing Officer with the direction to Assessment Year:2023-24 6 pass order in accordance with law after providing reasonable opportunity to the assessee.