KALAVIKAS KENDRA,CUTTACK V. ITO, EXEMPTION, CUTTACK

ITA 265/CTK/2025

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The case involves Kalavikas Kendra, an appellant, contesting the intimation issued by the Central Processing Centre (CPC) under section 143(1) of the Income Tax Act, which taxed the entire receipts of the assessee as income. The primary issue was the non-filing of Form 10B, which is necessary for claiming exemptions under sections 11, 12A, and 13 of the Act. The assessee argued that the CPC should have only denied the benefits under sections 11 and 13, rather than treating the receipts as business income. The Senior Departmental Representative (DR) suggested that the assessee could file an application for condonation of delay in filing Form 10B. However, the Tribunal found that the actions taken by the CPC were beyond the scope of adjustments permissible under section 143(1) and thus quashed the intimation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717326 (ITAT-CUTTACK)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 28-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY SINGH
• Assessee Lawyers: P.R.MOHANTY
• Keywords: Condonation of delay; Business income
• Section: 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.265 & 266/CTK/2025 (नििाारण वर्ा / Assessment Year : 2016-2017 & 2020-2021) Kalavikas Kendra, AT : KVK Building, KVK Marg Buxibazar, Cuttack-753001 Vs ITO(Exemption), Cuttack PAN No. : AAATK 3918 R (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri P.R.Mohanty, Advocate राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई की तारीख / Date of Hearing : 11/08/2025 घोषणा की तारीख/Date of Pronouncement : 11/08/2025 आदेश / O R D E R Per Bench : These two appeals are filed by the assessee against the separate orders passed by ld. Addl/JCIT(A), Prayagraj, both dated 31.03.2025, for the assessment years 2016-2017 & 2020-2021. 2. It was the submission of the ld. AR that when filing the return of income there was a delay in filing form 10B. It was the submission that consequently the CPC had issued an intimation u/s.143(1) of the Act bringing to tax the entire receipts as income of the assessee. It was the submission of the ld. AR that this is not permissible under an intimation u/s.143(1) of the Act and if at all the CPC to make adjustments it was the denial of the benefit u/s.11 & 13 of the Act, that could have been done. Printed from counselvise.com ITA No.265&266/CTK/2025 2 3. In reply, ld. Sr. DR submitted that the assessee has an option to file application for condonation of delay in filing Form 10B. It was the submission that liberty may be granted to the assessee to file application for condonation of delay in filing Form 10B of the Act. 4. We have considered the rival submissions. When the assessee has not complied with the requirement of the Act being not filed Form 10B of the Act if an intimation u/s.143(1) is to be issued, then obviously the income of the assessee would be treated as business income and his business income is liable to be assessed. Non-filing of Form 10B would lead to non- granting of the exemption as required u/s.11 & 13 r.w.s.12A of the Act. In both the appeals of the assessee, it is noticed that the CPC has not assessed assessee’s business income but has brought to tax the entire receipts as the total income of the assessee. This is not permissible in an intimation issued u/s.143(1) of the Act. This being so, the intimation issued u/s.143(1) of the Act is bad in law and does not fall within the adjustments as prescribed u/s.143(1) of the Act. Consequently, the intimation issued u/s.143(1) for both the assessment years under consideration is hereby quashed. 5. In the result, both appeals of the assessed are allowed. Order dictated and pronounced in the open court on 11/08/2025. Sd/- (राजेश क ुमार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 11/08/2025 Prakash Kumar Mishra, Sr.P.S. Printed from counselvise.com ITA No.265&266/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 "