Case Law Details
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.
Further, the statement of facts submitted by the assessee required factual verification. The Departmental Representative submitted that the issues in dispute should be set aside to the file of the Assessing Officer for proper examination.
Accepting this submission, the Tribunal remitted all issues to the Assessing Officer with a direction to pass an order in accordance with law after providing reasonable opportunity to the assessee. Accordingly, the appeal was partly allowed for statistical purposes. The order was pronounced on 27/01/2026.
FULL TEXT OF THE ORDER OF ITAT LUCKNOW
(A) This appeal vide I.T.A. No.272/Lkw/2025 has been filed by the assessee for assessment year 2023-24 against impugned appellate order dated 06/02/2025 (DIN & Order No. ITBA/APL/S/250/2024-25/1072970737(1) of Addl/Joint Commissioner of Income Tax (Appeals) [“ADDL/JCIT(A)” for short].
(B) In this case the assessee’s return of income was processed u/s 143(1) of the Act and intimation was issued to the assessee, dated 29/10/2024 by Centralized Processing Centre (“CPC” for short) of the Income Tax department. In the aforesaid intimation dated 29/10/2024 issued u/s 143(1) of the Act, whereby the CPC reduced the accumulation of income from Rs.73,77,534/- to Rs.57,77,534/-. A further addition of Rs.87,650/-was made in the aforesaid intimation u/s 143(1) of the I. T. Act. The assessee filed appeal against the aforesaid intimation issued u/s 143(1) of the Act, in the office of the learned CIT(A). Vide impugned appellate order dated 06/02/2025, the assessee’s appeal was dismissed. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 06/02/2025. The grounds of appeal are as under:
“1. Learned Addl./JCIT(A)-3 has erred in law and on facts in reducing the amount of accumulation of income by Rs.16,00,000/- from Rs.73,77,534/- to Rs.57,77,534/-.
2. Learned Addl./JCIT(A)-3 has erred in law and on facts in disallowing the repayment of loan during the year – Rs.87,650/-as application of income.”
(C) At the time of hearing before us, there was no representation from the assessee’s side. In the absence of any representation from the assessee’s side, the learned D.R. for Revenue was heard and the materials available on record were perused. In the impugned appellate order, the learned CIT(A) has observed that the assessee was given opportunity vide communication dated 08/12/2023 before making adjustment and resulting addition u/s 143(1) of the Act. However, from perusal of the order, it is not clear whether or not the opportunity given to the assessee was reasonable opportunity in the facts and circumstances of the case. Further, on merits, the statement of facts submitted by the appellant assessee is reproduced below:
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(C.1) After some deliberations, the learned Departmental Representative submitted that the statement of facts (as referred to in foregoing paragraph (C) of this order, requires factual verification at the end of the Assessing Officer. Therefore, he submitted, the issues in dispute regarding the additions/adjustments made vide intimation u/s 143(1) of the Act be set aside to the file of the Assessing Officer. In view of the foregoing, all the issues are remitted to the file of the Assessing Officer with the direction to pass order in accordance with law after providing reasonable opportunity to the assessee.
(D) In the result, the appeal of the assessee is partly allowed for statistical purposes.
(Order pronounced in the open court on 27/01/2026)
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