BHARATIYA SIKSHYA BIKASHA SANSTHANA,SIDDHARTHA NAGAR V. ITO, AMBAPUA

ITA 405/CTK/2025

AI Insights

The case involves Bharatiya Sikshya Bikasha Sanstha, a trust, which appealed against the orders passed by the Addl/JCIT(A)-3, Chennai, for the assessment years 2018-2019 and 2021-2022. The primary issue was the belated filing of Form 10B, which led to the denial of benefits under sections 11 and 13 of the Income Tax Act. The assessee argued that if the benefits under these sections are denied, the income should be assessed as business income, allowing all claimed expenditures. The Revenue supported the original assessment, but the Tribunal found the intimation under section 143(1) to be legally flawed, leading to the quashing of the intimation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717432 (ITAT-CUTTACK)
• Duration Of Justice: 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 19-07-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY SINGH
• Assessee Lawyers: RADHA KRISHNA SAHU
• Keywords: Business income
• Section: 11; 10B

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ुमार, लेखा सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.405 & 406/CTK/2025 (नििाारण वर्ा / Assessment Year : 2018-2019 & 2021-2022) Bharatiya Sikshya Bikasha Sanstha, 1st Lane, Berhampur Berhampur-760002 Vs ITO(Exemption) Ward Berhampur PAN No. : AACTB 4047 N (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Radha Krishna Sahu, Advocate राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई की तारीख / Date of Hearing : 13/08/2025 घोषणा की तारीख/Date of Pronouncement : 13/08/2025 आदेश / O R D E R Per Bench : These two appeals are filed by the assessee against the separate orders dated 30.05.2025 & 29.05.2025, passed by ld. Addl/JCIT(A)-3, Chennai, for the assessment years 2018-2019 & 2021-2022. 2. It was the submission of the ld. AR that the assessee is a trust which has filed its return of income on the ground that Form 10B was filed belatedly, the intimation has been issued denying the assessee benefit of the application u/s.11 & 13 of the Act. It was the submission that if at all the CPC was of the view that the Form 10B has been belatedly filed in the intimation u/s.143(1) of the Act, the entire receipts of the assessee should Printed from counselvise.com ITA No.405&406/CTK/2025 2 not be brought into tax. The income of the assessee would have to be assessed under the head business income and the expenses are liable to be allowed. This was not done by the CPC. The CPC brought to tax the entire receipts of the assessee. It was the submission that it is not permissible in an intimation u/s.143(1) of the Act. 3. In reply, ld. Sr. DR vehemently supported the order of the ld.AO & ld. CIT(A). 4. We have considered the rival submissions. Admittedly the assessee is a trust and filed its return of income as an AOP trust. If the benefit of Section 11 & 13 of the Act is to be denied to the assessee then obviously the income should be recomputed under the head business income. Disallowing the entire expenditure which has been claimed by the assessee as application, is not permissible in an intimation u/s.143(1) of the Act and the same is also not provided in the provisions of Section 143(1) of the Act. This being so, we are of the view that the intimation issued u/s.143(1) of the Act in both the appeals under consideration is bad in law and consequently we quash the same. 5. In the result, both appeals of the assessee are allowed. Order dictated and pronounced in the open court on 13/08/2025. Sd/- (राजेश क ुमार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 13/08/2025 Prakash Kumar Mishra, Sr.P.S. Printed from counselvise.com ITA No.405&406/CTK/2025 3 आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// Printed from counselvise.com "