Charitable Exemption Disallowance Requires Proper Assessment, Not CPC Adjustment ITAT Jodhpur

Shree Tarak Guru Jain Vs DCIT, CPC, Bengaluru/ITO (Exemption) (ITAT Jodhpur) The ITAT Jodhpur considered two appeals filed by a charitable trust for Assessment Years 2017–18 and 2019–20, challenging the denial of exemption claimed under section 11(2) of the Income Tax Act. The denial arose at the stage of processing of returns by the Centralised Processing Centre (CPC) under section 143(1), which was later upheld by the National Faceless Appeal Centre (NFAC). The appellate authority had rejected the trust’s claim on the ground that section 13(9), applicable from Assessment Year 2016–17...