ITAT Cochin Directs AO to Rectify Charitable Trust’s Returns After Processing Errors

Kathikode Charitable Trust Vs ITO (ITAT Cochin) The ITAT Cochin bench has set aside a massive tax demand raised against the Kathikode Charitable Trust, a charitable trust working in education since 2009. The Income Tax Department had initially processed the trust’s returns for the assessment years 2014-15 and 2015-16, raising demands of Rs. 28.47 lakhs and Rs. 37.75 lakhs, respectively, based on a denial of an exemption under Section 11(1)(a) of the Income-tax Act, 1961. The trust had initially reported a deficit (loss) for both years. The trust’s appeal was first dismissed by the Comm...