MALABAR EDUCATIONAL AND CHARITABLE TRUST,PALAKKAD V. ITO, EXEMPTION WARD, THRISSUR

ITA 48/COCH/2025

AI Insights

The case involves Malabar Educational and Charitable Trust, a trust registered under section 12A of the Income-tax Act, 1961, which filed an appeal against the order of the National Faceless Assessment Centre / Commissioner of Income-tax (Appeals) for the assessment year 2017-2018. The trust had filed its return declaring a nil income while claiming exemption under section 11 of the Act. However, the Assessing Officer assessed the income at Rs.22,69,880 after scrutinizing the receipts and applications of income. The CIT(A) partly allowed the appeal but directed the AO to restrict the addition to the extent specified under the limited scrutiny. The Tribunal dismissed the appeal due to the infructuous nature of the additional grounds raised.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 33552 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL; SENIOR
• Keywords: Set aside; Charitable institution

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member ITA No.48/Coch/2025 : Asst.Year 2017-2018 Malabar Educational and Charitable Trust 13/121, Cerppulasseri Palakkad – 679 503. PAN : AACTM8115C. v. The Income Tax Officer Exemption Ward Thrissur. (Appellant) (Respondent) Appellant by : --- None --- Respondent by : Smt.Leena Lal, Senior AR Date of Hearing : 10.02.2025 Date of Pronouncement : 13.02.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Assessment Centre / Commissioner of Income- tax (Appeals) [“CIT(A)” for short] dated 14.11.2024 having DIN & Order No.ITBA/APL/S/250/2024-25/1070349206(1) for the assessment year 2017-2018. 2. Briefly, the facts of the case are that the assessee is a trust registered under the provisions of sec.12A of the Income-tax Act, 1961 (“the Act” hereinafter) formed with the object of imparting education. The return of income for the assessment year 2017-2018 was filed on 27th July, 2017 declaring total at `Nil’ after claiming exemption u/s.11 of the Act. Against the said return of income, the assessment was ITA No.48/Coch/2025. Malabar Educational and Charitable Trust. 2 completed by the Assessing Officer (“the AO” hereinafter) vide order dated 12.12.2019 passed u/s.143(3) of the Act at a total income of Rs.22,69,880. While doing so, the AO against the total receipt of Rs.3,47,15,523, an amount of Rs.2,23,78,376 was allowed as application of income on revenue items and an amount of Rs.35,67,131 on capital items. The AO also allowed repayment of loan of Rs.12,92,811 as application of income and the balance amount of Rs.52,07,328 after allowing 15% of gross income to be carried forward, and the balance amount of Rs.22,69,880 was brought to tax. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order partly allowed the appeal by directing the AO to restrict the addition to the extent as specified under the limited scrutiny as per SOP. Accordingly, the CIT(A) set aside the issue back to the file of the AO. 4. Being aggrieved, the assessee is in appeal before me in the present appeal. When the case was called upon, none appeared on behalf of the assessee. 5. Therefore, I proceed to dispose of the appeal on merits after hearing the learned Senior Departmental Representative. 6. I have heard the Senior DR and perused the material available on record. The assessee raised several grounds of appeal, which does not emanate from the order of the CIT(A). Since the CIT(A) had set aside the issue to the file of the AO to the limit additions in respect of the ITA No.48/Coch/2025. Malabar Educational and Charitable Trust. 3 items for which limited scrutiny was taken up, all the other grounds of appeal raised before this Tribunal had become infructuous. 5. In the result, the appeal filed by the assessee is dismissed. Order pronounced on this 13th day of February, 2025. Sd/- (Inturi Rama Rao) ACCOUNTANT MEMBER Cochin; Dated : 13th February, 2025. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT, Cochin. 4. The DR, ITAT, Cochin. 5. Guard File. Asst.Registrar/ITAT, Cochin "