PRADEEP KUMAR SAHOO,KUNDI MOHANTYPADA vs. INCOME TAX OFFICER, WARD BHADRAK

ITA 47/CTK/2026Status: DisposedITAT Cuttack25 February 2026AY 2017-18Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI MADHUSUDAN SAWDIA (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the adhoc disallowance of expenses made by the AO was not permissible as no specific error was pointed out. Furthermore, since the assessee is a registered trust, Section 167B(1) of the Act is not applicable, and the normal rate of tax should be applied.

What were the facts?

The assessee, a charitable trust running a hospital, was granted registration under Section 12AB of the Act. The Assessing Officer (AO) made an adhoc disallowance of 12% of the entire expenses and applied the maximum marginal rate of tax under Section 167B(1) of the Act. The assessee appealed against the order.

What were the issues?

Whether the adhoc disallowance of expenses and application of maximum marginal rate of tax by the AO were justified.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 167B(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI MADHUSUDAN SAWDIA

For Appellant: Shri S.K.Sarangi, CA
For Respondent: Shri Sanjib Banerjee, Sr.DR
Hearing: 26/02/2026Pronounced: 26/02/2026

PER: BENCH

This is an appeal filed by the assessee against the order of the ld. CIT(A), NFAC, Delhi in Appeal No.NFAC/2022-23/10441338 dated 20/01/2026 for the A.Y. 2023-24. 2. Shri S.K.Sarangi, ld. A.R. appeared on behalf of the assessee and Shri Sanjib Banerjee, ld. Sr.DR represented on behalf of the revenue.

3.

It was submitted by ld AR that the assessee is a charitable trust, which is running hospital. It was the submission that the assessee has been granted registration u/s.12AB of the Act vide an order dated 6.4.2024. It was the submission that the assessment for the impugned assessment year has been completed on 27.2.2025. It was the submission that in the course

The order continues below.

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