Kailash Appartment Flat Owners Association Vs ITO (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT), Ahmedabad, allowed the appeal filed by an apartment owners association against the order of the Addl./Joint Commissioner of Income Tax (Appeal), Panaji, relating to Assessment Year 2022-23.
The assessee had filed its return declaring income of Rs. 1,87,110 and claimed its status as an AOP/BOI. Since the income was below the taxable limit applicable to that status, no tax liability arose. While processing the return under Section 143(1) of the Income Tax Act on 16.03.2023, the Centralized Processing Centre (CPC) treated the assessee as a Co-operative Society instead of AOP/BOI and raised a tax demand of Rs. 97,690.
The assessee filed a rectification application under Section 154 against the intimation issued under Section 143(1), but the application was rejected on 12.05.2023. The first appellate authority also dismissed the appeal.
Before the Tribunal, the assessee submitted that it had consistently filed returns as an AOP/BOI in earlier years and the same had been accepted by the department. It argued that it was a non-profit apartment owners association and not a Co-operative Society. The Revenue contended that the assessee had failed to furnish registration certificates, bye-laws, memorandum of association, or other documentary proof showing that it was a non-profit association outside the scope of a Co-operative Society.
