Institute of Defence Studies and Research Foundation(IDSRF) vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee trust had filed its return of income on 30.12.2023 declaring 'Nil' income and claiming exemption under section 11 of the Income Tax Act, 1961. However, the CPC denied the exemption and passed an order on 29.10.2024, on the ground that the Audit Report was not filed within the due date prescribed under the Act. Accordingly, an Intimation Order was passed under section 143(1) of the Act for Assessment Year 2023-24, in which a demand of ₹1,19,000/- was raised and an addition of ₹8,75,850/- was made by disallowing the amount accumulated or set apart up to 15% under section 11 of the Act. The assessee filed an appeal against this order before the Commissioner of Income Tax (Appeals), which was dismissed ex-parte. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the learned ADDL/JCIT (A)-2, Chennai, erred in dismissing the appeal of the Appellant ex-parte?
• 2. Whether the learned ADDL/JCIT (A)-2, Chennai, erred in confirming the action of the CPC, Bangalore by failing to appreciate that the action of CPC, Bangalore in making adjustments to the returned income of the appellant by way of intimation u/s 143(1) of the Act and in denying the benefit of Sec. 13 to the appellant was not a case of permissible prima facie adjustment u/s 143(1) of the Act?
• 3. Whether the learned ADDL/JCIT (A)-2, Chennai, erred in confirming the action of the CPC, Bangalore in not giving deduction of Rs. 8,75,850/- claimed by the appellant u/s 11(1)(a) of the Act?
• 4. Whether the learned ADDL/JCIT (A)-2, Chennai, erred in not considering audit report in Form 10BB filed by the Appellant before filing of first appeal?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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