Dr. Shalmali Khasbardar Foundation vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Dr. Shalmali Khasbardar Foundation, a registered public charitable trust, filed its income return in Form ITR-5 instead of ITR-7, as it was not registered under Section 12A of the Income Tax Act for the assessment year 2021-22. The Central Processing Centre (CPC) issued an intimation under Section 143(1) of the Act, taxing the assessee at the maximum marginal rate (MMR). The assessee appealed against this order before the Commissioner of Income Tax (Appeals), which was dismissed. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT), Mumbai.…

Legal Issues

• 1. Whether the CPC was required to provide an opportunity to the assessee before varying the rate of tax in the intimation under Section 143(1).
• 2. Whether the assessee should be taxed at the maximum marginal rate.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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