Gokhale Memorial Girls School Vs ITO (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT), Kolkata, allowed the assessee’s appeal by holding that an intimation under Section 143(1) of the Income-tax Act could not be issued after the case had already been selected for scrutiny through a notice under Section 143(2).
The assessee filed its return of income for Assessment Year 2024-25 on 16.10.2024 declaring nil income. The return was selected for scrutiny to examine the issue relating to the constitution of the trust, and a notice under Section 143(2) was issued on 26.04.2025. Thereafter, the case was assigned to the Faceless Assessment Unit for completion of assessment. The assessee had claimed exemption under Section 10(23C)(VI). Subsequently, the Centralised Processing Centre (CPC) passed an intimation under Section 143(1) dated 22.12.2025 rejecting the exemption claim on the ground that Form No. 10B had been filed belatedly. The Commissioner (Appeals) upheld the action of the Assessing Officer.
Before the Tribunal, the issue was whether the intimation under Section 143(1), issued after the case had already been selected for scrutiny, was valid. The Tribunal noted that the notice under Section 143(2) had been issued on 26.04.2025, whereas the intimation under Section 143(1) was issued much later on 22.12.2025. It accepted the assessee’s contention that once scrutiny proceedings have commenced, an intimation under Section 143(1) cannot be issued thereafter.
