TELUGU UNION BAPTIST CHURCH,BERHAMPUR V. ASST DIRECTOR OF INCOME TAX, CPC

ITA 374/CTK/2024

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The case involves the Telgu Union Baptist Church, a charitable trust, which appealed against the intimation issued by the CPC disallowing all expenditures claimed in the return for the assessment year 2019-20. The trust argued that even if it was not eligible for deductions under sections 11 and 12 of the Income Tax Act, the income should be assessed under the head 'business' where expenditures are allowable. The tribunal found that the disallowance of expenditure was a debatable issue and should not have been resolved in the intimation under section 143(1). The tribunal admitted the appeal despite a slight delay in filing, accepting the reasons provided by the trust's treasurer.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473613 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-11-2024
• Assessment Year: 2019-2020
• Appeal Filed On: 12-09-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHARAN DASS
• Assessee Lawyers: RADHA KRISHNA SAHU
• Keywords: Charitable institution
• Section: 12

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE MANISH AGARWAL Telgu Union Baptist Church, Gajapati Square, Giri Market,Berhampur PAN/GIR No. (Appellant Per Bench This is an CIT(A), NFAC, Delhi dated 19/10077720 for the ass 2. Shri Radha Krishna Sahu, Charan Dass, Sr. IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.374/CTK/2024 Assessment Year : 2019-20 Telgu Union Baptist Church, Gajapati Square, Giri Market,Berhampur Vs. ITO, Exemption Ward, Berhampur No.AADTT 2033 K (Appellant) .. ( Respondent Assessee by : Shri Radha Krishna Sahu, Adv Revenue by : Shri Charan Dass, Sr DR Date of Hearing : 19/11/20 Date of Pronouncement : 19/11/20 O R D E R This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 12.7.2024 in Appeal No. for the assessment year 2019-20. Shri Radha Krishna Sahu, ld AR appeared for the assessee and Shri , Sr. DR appeared for the revenue. P a g e 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, MEMBER , ACCOUNTANT MEMBER ITO, Exemption Ward, Respondent) , Adv , Sr DR 2024 024 appeal filed by the assessee against the order of the ld in Appeal No. NFAC/2018- the assessee and Shri ITA No.374/CTK/2024 Assessment Year : 2019-20 P a g e 2 | 4 3. The appeal is time barred by 02 days. The assessee has filed condonation petition supported by affidavit for condoning the delay on the ground that as the treasurer of the appellant Trust was 70 years age and suffering from joint pains and dullness, the first appellate order was out of his memory and, therefore, there was delay of 2 days in filing the appeal. It was prayed that delay of 2 days may be condoned and appeal may be adjudicated on merits. We find that the contention given by the assessee for condoning the delay has not been found to be false. Consequently, we condone the delay of 2 days and admit the appeal for adjudication. 4. It was submitted by ld AR that the assessee is a charitable trust registered u/s.12A of the Act. It was the submission that registration was granted to the assessee on 25.3.2022. The impugned assessment year is 2019-20. The assessee had filed its return of income on 21.7.2020. The intimation came to be issued, wherein, the CPC has disallowed the entire expenditure claimed by the assessee. It was the submission that rectification application u/s.154 of the Act filed by the assessee was also rejected against which the appeal has been field to the ld CIT(A). It was the submission that the disallowance of expenditure is not permissible insofar as even if the revenue decides to hold that the assessee is not eligible for benefit of deduction u/s.11 & 12 of the Act, income would have been assessed under the head “business” and expenditures are allowable. It was the submission that this was clearly a debatable issue, which could ITA No.374/CTK/2024 Assessment Year : 2019-20 P a g e 3 | 4 not be considered in an intimation u/s.143(1) of the Act and 154 application was liable to be allowed. 5. In reply, ld Sr DR vehemently supported the order of the Assessing Officer and ld CIT(A). 6. We have considered the rival submissions. A perusal of the facts in the present case clearly shows that in the intimation u/s.143(1) of the Act under the guise of arithmetical error being corrected, the entire expenditure claimed by the assessee has been disallowed. It is not permissible when issuing an intimation u/s.143(1) of the Act. Consequently, the intimation issued by the CPC in the case of the assessee for the assessment year 2019-20 is found to be erroneous and being entered into a debatable issue, same stands quashed. 7. In the result, appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 19/11/2024. Sd/- sd/- (George Mathan) (Manish Agarwal) JUDICIAL MEMBER ACCOUNTANT MEMBER Cuttack; Dated 19/11/2024 B.K.Parida, SPS (OS) ITA No.374/CTK/2024 Assessment Year : 2019-20 P a g e 4 | 4 Copy of the Order forwarded to : By order Sr.Pvt.Secretary ITAT, Cuttack 1. The Appellant : Telgu Union Baptist Church, Gajapati Square, Giri Market,Berhampur 2. The Respondent: ITO, Exemption Ward, Berhampur 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, 5. DR, ITAT, 6. Guard file. //True Copy// "