Public School, Phulbani V. ITO (Exemption) , Berhampur

ITA 39/CTK/2023

AI Insights

The case involves an appeal by Public School, Narayani Road, Phulbani against the order of the CIT(A), NFAC, Delhi, which confirmed the adjustments made in the intimation under section 143(1) of the Income Tax Act, 1961. The primary contention was regarding the disallowance of expenses incurred by the assessee in the intimation. The assessee argued that following the intimation, a scrutiny assessment under section 143(3) was completed, accepting the nil income after deductions. The revenue supported the CIT(A)'s order, emphasizing the validity of the adjustments made in the intimation. The Tribunal, after considering the submissions and the completed scrutiny assessment, ruled in favor of the assessee, highlighting that the issues were debatable and thus not suitable for adjustment under section 143(1).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300448 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-04-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 12-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE Public School, Road, Phulbani, Kandhamala PAN/GIR No. (Appellant This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi No.ITBA/NFAC/S/250/2022 2016-17 confirming the u/s.143(1) of the Act dated 29.3.2018. 2. Shri A.K.Pa ld Sr DR appeared for the revenue. 3. It was submitted by ld AR that subsequent to intimation issued u/s.143(1) of the Act, scrutiny assessment u/s.143(3) of the Act has been IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK ‘SMC’ BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL ITA No.39/CTK/2023 Assessment Year : 2016-17 Public School, Narayani Road, Phulbani, Kandhamala Vs. ITO (Exemption), Berhampur, Odissa PAN/GIR No.AACAP 2422 Q (Appellant) .. ( Respondent Assessee by : Shri A.K.Padhy, CA Revenue by : Shri S.C.Mohanty, Sr DR Date of Hearing : 19 /0 Date of Pronouncement : 19/0 O R D E R This is an appeal filed by the assessee against the order of the ld , NFAC, Delhi dated 26.12.2022 ITBA/NFAC/S/250/2022-23/1048231407(1) for the assessment year 17 confirming the adjustment made in the intimation issued u/s.143(1) of the Act dated 29.3.2018. Shri A.K.Padhy, CA appeared for the assessee and Shri S.C.Mohanty, ld Sr DR appeared for the revenue. It was submitted by ld AR that subsequent to intimation issued 43(1) of the Act, scrutiny assessment u/s.143(3) of the Act has been Page1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, , CUTTACK JUDICIAL MEMBER ITO (Exemption), Berhampur, Odissa Respondent) hy, CA S.C.Mohanty, Sr DR 04/2023 /04/2023 This is an appeal filed by the assessee against the order of the ld 26.12.2022 in Appeal for the assessment year adjustment made in the intimation issued hy, CA appeared for the assessee and Shri S.C.Mohanty, It was submitted by ld AR that subsequent to intimation issued 43(1) of the Act, scrutiny assessment u/s.143(3) of the Act has been ITA No.39/CTK/2023 Assessment Year : 2016-17 Page2 | 3 completed on 2.11.2018, wherein, the returned income has been accepted and the income of the assessee has been determined at Nil after granting the assessee benefit of deduction u/s.10(23C) of the Act and after considering the registration u/s.12AA of the Act. It was the submission that as the scrutiny assessment has been completed and all details have been examined and accepted, the adjustment as made in the intimation u/s.143(1) of the Act could not be considered as a prima facie adjustment. It was the submission that in the intimation u/s.143(1), the entire expenses incurred by the assessee has been disallowed. 4. In reply, ld Sr DR vehemently supported the order of the ld CIT(A). it was the submission that in the intimation u/s.143(1), the specified adjustment had been done. 5. I have considered the rival submissions. It is an admitted fact that after the intimation u/s.143(1) issued to the assessee, assessment for the impugned assessment year has been completed u/s.143(3) of the Act and after examination of all the issues, the assessee has been held to be eligible for deduction u/s.10(23C) and 12AA of the Act. Thus, clearly, the adjustment as made by the CPC in the intimation u/s.143(1) is nothing but a debatable issue, which could not have been considered as a mistake apparent from the record. This being so, it is held that intimation u/s.143(1) is unsustainable and consequently, same stands set aside. ITA No.39/CTK/2023 Assessment Year : 2016-17 Page3 | 3 6. In the result, appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 19/04/2023. Sd/- (George Mathan) JUDICIAL MEMBER Cuttack; Dated 19/04/2023 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : Public School, Narayani Road, Phulbani, Kandhamala 2. The Respondent: ITO (Exemption), Berhampur, Odissa 3. The CIT(A)-, NFAC, Delhi 4. Pr.CIT-, Berhampur 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//