PASIKUDIL TRUST, CUDDALORE V. ITO, WARD-1, CUDDALORE

ITA 961/CHNY/2022

AI Insights

The case involves Pasikudil Trust, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was against an intimation from the Centralized Processing Center, Bangalore, which denied the exemption under sections 11 and 12 of the Income Tax Act for the Assessment Year 2020-21. The denial was based on the late filing of the income tax return. The Tribunal considered the provisions of section 13(9) as inserted by the Finance Act, 2015, and upheld the decision that the entire gross receipts were initially brought to tax instead of just the net income after deductions for administrative and charitable expenses.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134000 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 19-02-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 13-11-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: CKN RAVISHANKAR PRABHU LD
• Section: 12; 11; 143(1)

Judgement Text

आयकर अपीलीय अिधकरण ‘सी/ एस एम सी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘C/SMC’ BENCH, CHENNAI माननीय .ी मनोज कु मार अ2वाल ,लेखा सद6 के सम7। BEFORE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.961/Chny/2022 (िनधा=रण वष= / Assessment Year: 2020-21) Pasikudil Trust 1, Mouna Movus, Kariamedu, Cudalore-608 704. बनाम/ V s. ITO Ward-1, Cuddalore. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AAC TP -5 0 0 9 -J (अ पीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri CKN Ravishankar Prabhu (CA) - Ld. AR थ की ओरसे/Respondent by : Shri Sanat Kumar Raha (Addl. CIT)-Ld. DR सुनवाई की तारीख/Date of Hearing : 20-02-2023 घोषणा की तारीख /Date of Pronouncement : 20-02-2023 आदेश / O R D E R 1. Aforesaid appeal by assessee for Assessment Year (AY) 2020-21 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 19-09-2022 in the matter of an intimation dated 30-11-2021 issued by Centralized Processing Center, Bangalore (CPC) u/s. 143(1) of the Act determining income of Rs.10.63 Lacs. In the said intimation, the assessee has been denied exemption u/s 11 / 12 as claimed by the assessee due to the fact that the return of income was filed belatedly on 31.03.2021. 2. The Ld. CIT(A), considering the provisions of Sec.13(9) as inserted by Finance Act, 2015 w.e.f. 01-04-2016, upheld the denial of ITA No.961/Chny/2022 - 2 - deduction. Aggrieved, the assessee is in further appeal before me wherein limited submissions of Ld. AR that only net income should be brought to tax and not the gross receipts as done by CPC. 3. After due consideration of case records, I find that the assessee has admitted gross receipts of Rs.10.63 Lacs and incurred administrative expenditure and certain amount has been expanded for charitable purposes. Prima facie, the assessee has earned surplus of Rs.0.18 Lacs which precisely is the argument before me. I am of the considered opinion, in case the deduction is to be denied, only the surplus and not the entire gross receipts should be brought to tax. The Ld. AO is directed to verify the same and re-determine the income of the assessee accordingly. 4. The appeal stands partly allowed in terms of above order. Order pronounced on 20 th February, 2023. Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद6 / ACCOUNTANT MEMBER चे)ई / Chennai; िदनांक / Dated : 20-02-2023 EDN/- आदेश की Qितिलिप अ 2ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु /CIT 4. िवभागीय ितिनिध/DR 5. गाड फाईल/GF