Sorathiya Darji Kedvani Mandal Vs ITO (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT), Ahmedabad bench, has provided relief to Sorathiya Darji Kedvani Mandal, a charitable trust, by allowing its appeal and setting aside a surcharge demand raised by the Income Tax Department for the Assessment Year 2021-22.
The case involved an appeal against the order of the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), which had confirmed the surcharge levied in an intimation issued under Section 143(1) of the Income Tax Act, 1961.
Sorathiya Darji Kedvani Mandal, registered under the Bombay Public Trust Act, 1950, is engaged in charitable activities including providing relief to the poor, medical aid, and promoting education. For the assessment year 2021-22, the trust was not registered under Section 12A of the Income Tax Act and was therefore assessed as an Association of Persons (AOP).
The trust filed its return of income on March 30, 2024, declaring a total income of Rs. 44,690. It paid taxes, interest, and penalties amounting to Rs. 36,096. Subsequently, the Deputy Director of Income Tax, CPC (Centralized Processing Centre), issued an intimation under Section 143(1), raising an additional demand of Rs. 15,250. This demand was solely attributed to the inclusion of a surcharge component in the tax liability calculation.
