, , आयकर अपीलीय अिधकरण इंदौर (cid:586)ायपीठ इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI TR SENTHIL KUMAR, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No. 612/Ind/2025 Assessment Year: 2018-19 Bhartiya Aadarsh Deputy Commissioner of Shikshan Samiti, Income-tax (Exemption), Manas Bhawan, / Bhopal बनाम Sanjit Road, Vs.

Mandsaur (Assessee/Appellant) (Revenue/Respondent)

PAN: AABAB2693N Assessee by Shri Rajesh Mehta, AR Revenue by Shri Anup Singh, CIT- DR Date of Hearing 04.02.2026 Date of Pronouncement 19.02.2026 आदेश / O R D E R Per B.M. Biyani, A.M.:

Feeling aggrieved by appeal-order dated 05.06.2025 passed by learned Commissioner of Income-Tax (Appeals)-Addl/JCIT(A)-6, Kolkata [“CIT(A)”] which in turn arises out of intimation dated 26.02.2020 passed by learned CPC, Bangalore [“AO”] u/s 143(1) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2018-19, the assessee has filed this appeal on following grounds:

“1. The Ld. AO, CPC and the Ld. JT. CIT(A) have erred in not allowing exemptionu/s.11 ofthe Act:

1.1.On the facts and in the circumstances ofthe case and in law, the Ld. AO, CPC has erred in not allowing claim of exemption u/s. 11 of the Act without appreciating that the assessee society is a genuine charitable society engaged in educational activities and is registered u/s. 12AA of the Act vide 12AA Registration Certificate dated 29.07.2019. Thus, the action of the Ld.

AO,CPC ofnotallowing exemption u/s. 11 ofthe Actis liable to be quashed.

1.2.On the facts and in the circumstances ofthe case and in law, the Ld. AO, CPC has erred in disallowance of exemption u/s. 11 of the Act without appreciating that as per the First Proviso to Section 12A(2) of the Act, the benefit of exemption u/s. 11 of the Act shall apply on all the pending proceedings and thus,the Intimation u/s.143(1) ofthe Actdated 26.02.2020, without considering the 12AA Registration Certificate dated 29.07.2019, is liable to be setaside and exemption u/s.11 ofthe Actmay kindly be allowed to the assessee society.

1.3. On the facts and in the circumstances of the case and in law and without prejudice to the above, the Ld. AO, CPC has erred in not allowing deduction of revenue expenditure incurred by the assessee society in the regular course of activities of the assessee society, which is wrong and contrary to the provisions ofthe Act.

2. The disallowance of exemption u/s. 11 of the Act by the Ld. AO, CPC u/s. 143(1) ofthe Actis withoutjurisdiction and thus,the Intimation u/s.143(1) of the Actis liable to be quashed:

2.1.On the facts and in the circumstances ofthe case and in law, the Ld. AO, CPC has erred in making disallowance of exemption u/s. 11 of the Act withoutconsidering the facts of the case and provisions of the Act. Thus, the Intimation u/s. 143(1) ofthe Actis liable to be quashed.

2.2.On the facts and in the circumstances ofthe case and in law, the Ld. AO, CPC has erred in disallowing claim of exemption u/s. 11 of the Assessee society without appreciating that adjustments u/s. 143(1)(a) of the Act can only be made for only prima facie adjustment and not for issues which are debatable in nature. Thus, disallowing the exemption u/s. 11 of the Act by the Ld. AO,CPC is wrongand is liable to be deleted.”

2. The background facts leading to present appeal are as under:

(i) The assessee is a society engaged in charitable purpose of advancing education. For AY 2018-19, the assessee filed return of income u/s 139 on 07.01.2019 belatedly u/s 139(4) declaring gross income of Rs.

4,52,77,591/- against which claimed exemption of Rs. 4,52,77,591/- u/s 11/12 and total income of Rs. Nil. The assessee also got accounts audited and filed auditor report in Form No. 10B on the very same day of 07.01.2019. The AO processed assessee’s return vide intimation dated 26.02.2020 u/s 143(1) wherein the exemption u/s 11/12 claimed by assessee was denied for the reason that the assessee was not having registration u/s 12A/12AA which was