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IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT

BEFORE SHRI T. R. SENTHIL KUMAR, JUDICIAL MEMBER AND

SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER

आयकर अपील स.ं /ITA No.547/SRT/2025

Assessment Year: (2023-24)

(Hybrid hearing)

Green Mumbay Lions Education Vs. ITO,

Trust, Exemption Ward,

Opp – Ratnakar Society, C/O SGM Surat

Shiroya English School, Chhapra

Road, Navsari - 396445

èथायीलेखासं./जीआइआरसं./PAN/GIR No: AATG8361Q

(अपीलाथ(cid:334)/Appellant) ((cid:366)(cid:529)थ(cid:334) /Respondent)

Appellant by Shri Bhupendra Shah, CA

Respondent by Shri Ajay Uke, Sr. DR

Date of Hearing 12/11/2025

Date of Pronouncement 23/12/2025

आदेश / O R D E R

PER BIJAYANANDA PRUSETH, AM:

This appeal by the assessee emanates from the order passed under

section 250 of the Income-tax Act, 1961 (in short, ‘the Act’), dated 19.03.2025

by the learned Commissioner of Income-tax (Appeals), National Faceless Appeal

Centre, Delhi [in short ‘CIT(A)’] for the assessment year (AY) 2023-24.

2. The grounds of appeal raised by the assessee are as under:

“1. In the facts and circumstances of the case and in law the Assessing Officer

(CPC) erred in making addition of Rs Rs.43,78,990/-by

a. making adjustment u/s 143(1) which is not permissible because the

same is not a prima facie adjustment

b. wrongly treating the accumulated sum of Rs Rs.43,78,990/- as not

having been applied even though the same was spent in 6th year i.e. AY

23-24

ITA No.547/SRT/2025/AY.2023-24

Green Mumbay Lions Education Trust

c. even though time period of 6th year was allowed for applying the said

sum of Rs Rs.43,78,990/-

d. amended provisions of curtailing the application to 5 years is not

retrospective

e. Also erred in keeping application u/s 154 pending on the same line.

f. Wrongly holding that for 10B is not filed

g. Ignoring form 10BB which is correct report to be filed

2. In the facts and circumstances of the case and in law the Assessing Officer

(CPC) erred in levying interest u/s 234A, B and C.

3. In the facts and circumstances of the case and in law, the leaned Addl/JCIT(A)

erred in confirming the addition without considering the submission of the

Appellant and without granting an opportunity of personal hearing thereby not

complying with the principles of natural justice.

[B] Relief Prayed:

The appellant therefore prays Your Honour,

1) To delete the addition of RS 43,78,990/-

2) To quash adjustment made u/s 143[1][a]

3) To delete interest u/s 234A B C”

3. Brief facts of the case are that the assessee is a public charitable trust. It

filed return of income for AY 2023-24 on 21.10.2023, declaring Nil total income

after claiming exemption u/s 11 of the Act. The assessee had filed Form No.10B

and 10BB as per Rule 17B of the IT Rules. The return was processed u/s 143(1)

of the Act on 21.12.2024, determining total income at Rs.43,78,990/- and raising

a demand of Rs.14,80,700/-. The CPC, Bangalore (in short, ‘AO - CPC’) had issued

an prima facie adjustment communication to the assessee on 29.11.2024,

stating that there was inconsistency in ‘deemed income’ referred in Explanation

- 4 to the third proviso to section 10(23C) or section 11(3) at Sr. No.1 of

Schedule 115BBI and Sr. No. 33(b) of Form No.10B.

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ITA No.547/SRT/2025/AY.2023-24

Green Mumbay Lions Education Trust

4. Aggrieved by the order of AO, the assessee filed appeal before the CIT(A).

The appellant filed a written submission, which is reproduced at page 6 to 9 of

the appellate order. The CIT(A) has extracted provisions of section 143(1)(a) of

the Act and observed that before making adjustment u/s 143(1)(a) of the Act,

intimation has to be given to the assessee requiring him to respond such

adjustment. The AO, CPC duly issued intimation regarding the prima facie

adjustment vide communication dated 29.11.2024, which was not responded to

by the assessee. Therefore, the AO, CPC made disallowance of Rs.43,79,990/- as

deemed income u/s 11(3) or Explanation – 4 of section 10(23C) of the Act. In the

appellate proceedings, the appellant contended that it had set apart or

ac