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Facts
The assessee, an educational and charitable trust, received an intimation under section 143(1) from the CPC denying exemption under section 11 and taxing its entire gross receipts. This order was confirmed by the CIT(A).
Held
The Tribunal held that the CPC's action of denying exemption under section 11 and taxing the entire gross receipts under section 143(1) was beyond its powers. The Revenue should have resorted to assessment under section 143(3) to deny the exemption and assess the real income.
Key Issues
Whether the CPC has the power to deny exemption under section 11 and tax the entire gross receipts under section 143(1) of the Act.
Sections Cited
143(1), 11, 143(3)
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI MADHUSUDAN SAWDIA
O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld.Addl./JCIT(A)-9, Mumbai, dated 06.01.2026 for the assessment year 2019-2020.
It was submitted by the ld. AR that the appeal is against the order u/s.143(1) of the Act for the A.Y.2019-2020 issued by the CPC, which has been confirmed by the ld. CIT(A). It was the submission that denial of exemption u/s.11 of the Act and taxing the entire gross receipts of the assessee is beyond the power of CPC u/s.143(1) of the Act. Therefore, it is submitted that the intimation issued u/s.143(1) of the Act is liable to be quashed and in consequence thereof the order passed by the ld. CIT(A) deserves to be dismissed.
In reply, ld. Sr. DR vehemently supported the orders of the CPC and ld. CIT(A).