Jain Sangh Parabdi Khayu Trustee Vs DCIT (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT), Ahmedabad, disposed of two appeals filed by the assessee for AYs 2016-17 and 2017-18 against separate orders of the Commissioner of Income Tax (Appeals), both dated 25.08.2020, arising from intimations issued under Section 143(1) of the Income-tax Act, 1961.
The common issue in both appeals was whether the assessee, a public charitable trust registered under the Bombay Public Trust Act, 1950 but not registered under Section 12A of the Act, was liable to tax at the maximum marginal rate or at the normal rates after allowing the basic exemption limit.
Material Facts
For AY 2016-17, the assessee filed its return declaring income of ₹12,710 under the head “Income from Other Sources.” According to the assessee, the income was below the taxable limit if taxed at the rates ordinarily applicable. However, while processing the return under Section 143(1), the Centralized Processing Centre (CPC) treated the assessee as an Association of Persons (AOP), applied the maximum marginal rate, denied the benefit of the basic exemption limit, and raised a tax demand of ₹4,629, including interest.
The assessee challenged the intimation before the Commissioner (Appeals).
Proceedings Before the Commissioner (Appeals)
