MEGHNA CHARITABLE TRUST,BHUBANESWAR V. .ITO EXEMPTION WARD, BHUBANESWAR, BHUBANESWAR

ITA 232/CTK/2024

AI Insights

The case involves Meghna Charitable Trust appealing against an order from the JCIT(A)-2, Gurugram, which confirmed an intimation by the CPC under section 143(1) of the Income Tax Act. The intimation disallowed the entire application of income on the grounds that Form No. 10B was filed belatedly. The Tribunal found that the CPC's adjustment was impermissible as it disallowed the entire application of income without proper verification or reason, which is not permissible under an intimation issued under section 143(1).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473628 (ITAT-CUTTACK)
• Duration Of Justice: 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 21-05-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S.C.MOHANTY
• Keywords: Charitable institution
• Section: 143(1); 11; 12

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE MANISH AGARWAL Meghna Charitable Trust, Plot No.N- Village, Nayapa Bhubaneswar PAN/GIR No. (Appellant Per Bench This is an Addl/JCITA)-2, Gurugram dated 26.3.2024 Bhubaneswar-1/10055/2020 2. None represented on behalf of the assessee. However, an adjournment letter has been filed, which reads as follows: IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.232/CTK/2024 Assessment Year : 2018-19 Meghna Charitable Trust, -4/208, IRC Village, Nayapalli, Vs. Income Tax Officer (Exemption) Ward, Bhubaneswar No.AABTM 2226 K (Appellant) .. ( Respondent Assessee by : None Revenue by : Shri S.C.Mohanty, Sr DR Date of Hearing : 12/12/20 Date of Pronouncement : 12/12/20 O R D E R This is an appeal filed by the assessee against the order of the ld 2, Gurugram dated 26.3.2024 in Appeal No. 1/10055/2020-2021 for the assessment year represented on behalf of the assessee. However, an adjournment letter has been filed, which reads as follows: P a g e 1 | 5 IN THE INCOME TAX APPELLATE TRIBUNAL, MEMBER , ACCOUNTANT MEMBER Income Tax Officer (Exemption) Ward, Respondent) : Shri S.C.Mohanty, Sr DR 2024 024 appeal filed by the assessee against the order of the ld in Appeal No.CIT(A)-, essment year 2018-19. represented on behalf of the assessee. However, an ITA No.232/CTK/2024 Assessment Year : 2018-19 P a g e 2 | 5 As the issue in the appeal is simple and does not need further verification of facts, the adjournment letter filed by the ld AR on behalf of the assessee is rejected and the appeal disposed off on merits. Here, it may worthwhile to mention here that on earlier occasion, when the appeal was posted for hearing, ld counsel for the assessee sought an adjournment on that date also and it was granted as final chance. 3. Shri S.C.Mohanty, ld Sr DR appeared for the revenue. It was put to the ld Senior DR that the appeal has been filed against the order of ld JCIT(A)-2, Gurugram, wherein, he has confirmed the intimation issued u/s ITA No.232/CTK/2024 Assessment Year : 2018-19 P a g e 3 | 5 143(1) of the Act, wherein the total receipts has been brought to tax on the ground that Form No. 10 B has been filed belatedly. In the intimation, the CPC has disallowed the entire application of income under the guise of mistake apparent from record. It was submitted by ld Sr DR that what is allowable admittedly is only expenditure required for earning the said income and what has been disallowed in the intimation is the application of the income received by the assessee. It was the submission that this was clearly a mistake apparent from record, which was permissible to be disallowed in an intimation 143 (1) of the Act. It was the further submission that the receipts as shown in the intimation was clearly voluntary contribution and, therefore, the income by the definition and as the Form No 10 B had not been filed within the stipulated time, the application of income claimed by the assessee is liable to be disallowed and has been rightly done in the intimation. 4. We have considered the submission of ld Sr. DR. A perusal of the facts in the present case clearly shows that the assessee has filed his return of income under the status of AOP and has claimed exemption u/s.11 and 12 of the Act. Admittedly, there is delay in filing of Form 10 B. In such circumstances, what is permissible is that the income which has been offered by the assessee on the basis of income and expenditure statement could be denied exemption u/s 11 and 12 of the Act. There is no provision for denying the entire application. Just because when the exemption u/s. ITA No.232/CTK/2024 Assessment Year : 2018-19 P a g e 4 | 5 11 and 12 of the Act is denied, the income and expenditure account of the assessee changes its form to Profit & Loss Account and it is only the income that is generated from such profit and loss account, which can be brought to tax and entire expenditure cannot be disallowed without verification or reason. The disallowance of entire application in an intimation u/s. 143(1) of the Act is an adjustment which is impermissible in an intimation u/s.143(1) of the Act. This being so, we are of the view that the adjustment as done by the CPC in the intimation us/143(1) is impressible and stand stands quashed. 5. In the result, appeal of the assessee allowed. Order dictated and pronounced in the open court on 12/12/2024. SD/- SD/- (Manish Agarwal) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 12/12/2024 B.K.Parida, SPS (OS) ITA No.232/CTK/2024 Assessment Year : 2018-19 P a g e 5 | 5 Copy of the Order forwarded to : By order Sr.Pvt.Secretary ITAT, CUTTACK 1. The Appellant : Meghna Charitable Trust, Plot No.N-4/208, IRC Village, Nayapali, Bhubaneswar 2. The Respondent: Income Tax Officer (Exemption) Ward, Bhubaneswar 3. The Addl/JCIT(A)-2, Gurugram 4. Pr.CIT, Bhubanswar-1. 5. DR, ITAT, 6. Guard file. //True Copy// "