Namo Narain Educational And Charitable Trust Vs ITO (Exemption) (ITAT Lucknow)
The appeal before the Income Tax Appellate Tribunal, Lucknow Bench concerned Assessment Year 2023–24 and arose from an appellate order dated 06/02/2025 passed by the Addl./Joint Commissioner of Income Tax (Appeals). The assessee challenged adjustments made in an intimation issued under Section 143(1) of the Income Tax Act.
The return of income filed by the assessee was processed under Section 143(1), and an intimation dated 29/10/2024 was issued by the Centralized Processing Centre (CPC). In the said intimation, the CPC reduced the accumulation of income from ₹73,77,534 to ₹57,77,534, thereby decreasing it by ₹16,00,000. Additionally, a sum of ₹87,650 was added, and repayment of loan during the year was not allowed as application of income.
Aggrieved by these adjustments, the assessee filed an appeal before the CIT(A). However, the appeal was dismissed through the impugned appellate order dated 06/02/2025. The assessee then approached the Tribunal, raising two primary grounds: (i) reduction of accumulation of income by ₹16,00,000, and (ii) disallowance of loan repayment of ₹87,650 as application of income.
At the time of hearing before the Tribunal, there was no representation on behalf of the assessee. The Departmental Representative was heard, and the material available on record was examined. The Tribunal noted that the CIT(A) had observed that an opportunity was given to the assessee via communication dated 08/12/2023 before making the adjustment under Section 143(1). However, from the order, it was not clear whether such opportunity was reasonable in the facts and circumstances of the case.
