INSTITUTE MANAGEMENT COMMITTEE ITI KUZHALMANNAM,PALAKKAD vs. ACIT , PALAKKAD

Brief facts of the case are that the assessee trust is formed with the object of managing the affairs of the Industrial Training Institute run by government private partnership. The return of income of AY Institute Management Committee ITI Kuzhalmannam 2011-12 was filed on 03.11.2021 declaring income of Rs. 10,17,560/- . The said return of income was processed u/s. 143(1) of the Income Tax Act, 1961 (the Act) vide intimation dated 07.03.2012 assessing the total income at maximum marginal rate of tax under the provisions of section 167B of the Act.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO by holding that the assessee trust is not covered by any exemption provided under the provisions of section 167B of the Act.

Being aggrieved, the assessee is in appeal before us in the present appeal.

Before us, the assessee raised 10 grounds of appeal. Ground of appeal Nos. 1 to 9 are dismissed as not pressed during the course of hearing. The only ground of appeal surviving is ground of appeal No. 10, which challenges the action of the lower authorities applying maximum marginal rate of tax to the total income. It is contended before us that the assessee is a society incorporated under the provisions of the Societies Act, therefore, it is submitted that provisions of section 167B have no application. The learned A.R. further submitted that this is beyond the scope of adjustment u/s. 143(1) of the Act.

On the other hand, the learned Sr. DR submitted that the orders passed by the lower authorities are reasoned and requires no interference.