2025 (12) TMI 191

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.... the Income Tax Act, 1961 ["the Act"] arising out of intimation order dated 14.02.2024 and 30.10.2024 passed u/s 143(1) of the Act pertaining to assessment year 2023-24 & 2024-25 respectively. 2. As both these captioned appeals filed by the assessee are having similar issues which are inter-linked, inter-connected and this fact has been admitted by both the parties during the course of hearing before us, therefore, both these appeals filed by the assessee are decided by a common order. ITA No.2121/Del/2025 [Assessment Year : 2023-24] 3. First we take up the appeal of assessee in ITA No. 2121/Del/2025 for Assessment Year 2023-24. 4. Brief facts of the case are that assessee, M/s Vindhya Trust ("Appellant") is an AOP/BOI and had f....

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.... Director of Income Tax, CPC (hereinafter referred to as "the AO"). It is submitted that the adjustment has been made without affording the appellant any opportunity of being heard and the same is in gross violation of principles of natural justice and also the provisions of Section 143(1) of the Act. The Appellant prays that the adjustment made is illegal, unwarranted and contrary to the law and may therefore kindly be struck down/deleted. Ground 2. RATE OF TAX: 2.10n the facts and in the circumstances of the case and in law, the learned CIT(A) erred in confirming the Tax levied by the learned Assessing Officer (CPC) at flat rate of 30%, instead of normal slab rates applicable in the case of the Appellant while processing the Retu....

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....T(A) erred in levying interest of Rs 3,74,318/- under the provisions of Section 234B and Rs. 1,31,266/- under the provisions of Section 234C of the Act, while processing the Return of Income under Section 143(1) of the Act. The appellant prays that the erroneous interest charged under Section 234B and Section 234C may kindly be deleted as the same is contrary to the law and unwarranted. The appellant hereby reserves the right to add to, alter or amplify the above grounds of appeal." 7. Before us, the Ld. AR of the assessee submits that assessee is a trust and is engaged in the charitable activities for the benefit of public at large. The assessee has not claimed any benefit u/s 11 of the Act and is assessed to tax as per the rates prescr....

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....f any member does not exceed the maximum amount which is not chargeable to tax, then compute the tax as per the slab rate and surcharge as applicable" 10. From the observations of ld. CIT(A) it is seen that ld. CIT(A) has filed to appreciate the fact that the appellate society is a charitable trust and does not for claim any benefit of exemption u/s 12A of the Act. As per the assessee, the CBDT Circular No. 320 dated 11.01.1982 [F.No.131(31)/81-TP (Pt.)] deals with this issue. The said Circular is reproduced as under: "Circular: No. 320 [F. No. 131(31)/81-TP (PL)], dated 11-1-1982- SECTION 167A ASSESSMENT WHERE SHARES OF MEMBERS UNKNOWN) 911. Whether the section is applicable to income received by trustees on behalf of ....

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....benefit of persons employed in such business or profession are concerned, they will continue to be charged to tax in the manner prescribed by section 164(1)(iv) of the Income-tax Act, as hitherto. Similarly, in the cases of registered societies, trade and professional associations, social and sports clubs, charitable or religious trusts. etc., where the members or trustees are not entitled to any share in the income of the association of persons, the provisions of new section 167A will not be attracted and, accordingly, tax will be payable in such cases at the rate ordinarily applicable to the total income of an association of persons and not at the maximum marginal rate". 11. As could be seen from the fact of the case, the assessee trus....