KAMLA EDUCATIONAL TRUST,DEOGHAR V. ITO WARD 3(3), DUMKA

ITA 265/RAN/2025

AI Insights

The case involves Kamla Educational Trust, which appealed against the intimation issued by the Income Tax Department under section 143(1) for the assessment year 2023-2024. The Trust had claimed an exemption under section 10(23C) of the Income Tax Act, which was denied, and their gross receipts were fully taxed. The Tribunal examined whether the intimation was correctly issued under section 143(1), which allows for adjustments only in cases of arithmetical mistakes. The Tribunal found that the necessary financial documents were not considered, leading to the decision to quash the intimation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 788488 (ITAT-RANCHI)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 08-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KHUBCHANDT PANDYA
• Assessee Lawyers: P.P. SINGH
• Keywords: Business income; Benefit of exemption

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC BENCH”, RANCHI BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER (THROUGH HYBRID MODE) आयकर अपील सं./ITA No.265/RAN/2025 (निर्धारण वर्ा / Assessment Year :2023-2024) Kamla Educational Trust, C/o Prem Kumar Bidhu Bhushan Sarkar Road, Willams Town, Deoghar-814112 Vs. ITO Ward-3(3), Dumka, Jharkhand स्थायी लेखा सं./PAN No. : AACTK 9414 E (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्ाारिती की ओर से /Assessee by : Shri P.P.Singh, AR राजस्व की ओर से /Revenue by : Shri Khubchand T Pandya, Sr. DR सुनवाई की तारीख / Date of Hearing : 24/11/2025 घोषणा की तारीख/Date of Pronouncement : 24/11/2025 आदेश / O R D E R This is an appeal filed by the assessee against the order of the ld. Addl/JCIT(A)-1, Nashik, dated 10.06.2025 for the assessment year 2023- 2024. 2. Shri P.P.Singh, ld.AR appeared on behalf of the assessee. Shri Khubchand T Pandya, Sr. DR appeared on behalf of the revenue. 3. It was submitted by ld AR that the assessee had filed the return of income for the impugned assessment year on 9.10.2023 claiming exemption u/s.10(23C) of the Act. It was the submission that the intimation u/s.143(1) of the Act was issued denying the assessee exemption claimed u/s.10(23C) of the Act and had brought to tax the entire gross receipts of the assessee without allowing the exemption claimed.. It was the submission that the intimation u/s.143(1) of the Act issued to the assessee is erroneous and is liable to be quashed. Printed from counselvise.com ITA No.265/Ran/2025 2 4. In reply, ld Sr DR submitted that the assessee has not provided the audit report and other details. It was the submission that the order of AO/CPC and that of the ld CIT(A) is liable to be upheld. 5. I have considered the rival submissions. What is permitted for adjustment in an intimation u/s.143(1) of the Act is an arithmetical mistake. If the CPC desires to deny the assessee the benefit of exemption u/s.10(23C) of the Act, then the option is for the CPC/AO is to compute the income of the assessee under the head “business income”. For this purpose, it would be required for the CPC/AO to prepare the balance sheet and profit and loss account of the assessee, that has not been done. Denying the assessee exemption u/s.10(23C) of the Act and bringing to tax the entire gross receipts, is not permissible, as it is not an arithmetical mistake. As the intimation issued u/s.143(1) of the Act is not in line with the provisions of section 143(1) of the Act, the intimation issued u/s.143(1) stands quashed. 6. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 24/11/2025. Sd/- (GEORGE MATHAN) न्यायिक सदस्य / JUDICIAL MEMBER रधाँची Ranchi; दिनांक Dated 24/11/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनिलिपि अग्रेपर्ि/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Senior Private Secretary) आयकर अिीिीय अधर्करण, रधाँची / ITAT, Ranchi 1. अपीलार्थी / The Appellant- . 2. प्रत्यर्थी / The Respondent- 3. आयकि आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. निभागीय प्रनतनिनर्, आयकि अपीलीय अनर्किण, रधाँची / DR, ITAT, Ranchi 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "