NAITIK EDUCATIONAL AND CHARITABLE TRUST,BHAWANIPATNA V. INCOME TAX OFFICER, EXEMPTION WARD, SAMBALPUR

ITA 61/CTK/2026

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The case involves the Naitik Educational and Charitable Trust, which appealed against the order of the CIT(A) confirming the intimation under section 143(1) of the Income Tax Act, 1961, issued by the Centralized Processing Center (CPC). The intimation denied the trust's claim for exemption under section 11 and taxed its entire gross receipts as income for the assessment year 2019-2020. The trust argued that such a denial and taxation were beyond the powers of the CPC under section 143(1) and should have been addressed under section 143(3). The Tribunal agreed with the trust's position, leading to the quashing of the intimation and the CIT(A)'s order.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837601 (ITAT-CUTTACK)
• Duration Of Justice: 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 21-01-2026
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY SINGH
• Assessee Lawyers: DIGANT DAS
• Keywords: Set aside; Charitable institution

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.61/CTK/2026 (नििाारण वर्ा / Assessment Year : 2019-2020) Naitik Educational and Charitable Trust, Mandar Bagicha Pada, Bhawanipatna, Kalahandi-766001 Vs ITO Exemption Ward, Sambalpur /ACIT CPC Bengaluru PAN No. :AABTN 7014 N (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Digant Das, Advocate राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई की तारीख / Date of Hearing : 20/02/2026 घोषणा की तारीख/Date of Pronouncement : 20/02/2026 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld.Addl./JCIT(A)-9, Mumbai, dated 06.01.2026 for the assessment year 2019-2020. 2. It was submitted by the ld. AR that the appeal is against the order u/s.143(1) of the Act for the A.Y.2019-2020 issued by the CPC, which has been confirmed by the ld. CIT(A). It was the submission that denial of exemption u/s.11 of the Act and taxing the entire gross receipts of the assessee is beyond the power of CPC u/s.143(1) of the Act. Therefore, it is submitted that the intimation issued u/s.143(1) of the Act is liable to be quashed and in consequence thereof the order passed by the ld. CIT(A) deserves to be dismissed. 3. In reply, ld. Sr. DR vehemently supported the orders of the CPC and ld. CIT(A). Printed from counselvise.com ITA No.61/CTK/2026 2 4. We have considered the rival submissions. A perusal of intimation u/s.143(1) of the Act shows that the CPC has denied the exemption claimed by the assessee u/s.11 of the Act and brought to tax the entire gross receipt of the assessee as its income. If the Revenue desires to deny the claim of the assessee u/s.11 of the Act, then the option available to the Revenue was to assess the real income of the assessee u/s.143(3) of the Act, instead of treating the entire gross receipt as income in the hands of the assessee u/s.143(1) of the Act. As the intimation issued u/s.143(1) of the Act taxing the gross receipts is not in line with the provisions of section 143(1) of the Act, the intimation u/s.143(1) of the Act stands quashed. Accordingly, the order of the ld. CIT(A) is also set aside. 5. In the result, appeal of the assessee is allowed.. Order dictated and pronounced in the open court on 20/02/2026. Sd/- (MADHUSUDAN SAWDIA) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 20/02/2026 Prakash Kumar Mishra, Sr.P.S. 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. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "