Income Tax Appellate Tribunal - Indore
National Medical College Educational ... vs Officer Exemption, Ratlam on 25 March, 2026
आयकर अपीलीय अिधकरण, इंदौर ायपीठ, इंदौर
IN THE INCOME TAX APPELLATE TRIBUNAL
INDORE BENCH, INDORE
BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER
AND
SHRI PARESH M. JOSHI, JUDICIAL MEMBER
ITA No.455/Ind/2025
Assessment Year:2023-24
National Medical, College CPC, Bengaluru
Educational Trust,
102, New Road, बनाम/
Ratlam Vs.
(Assessee/Appellant) (Revenue/Respondent)
PAN: AAATN4399M
Assessee by Ms. Sonam Khandelwal, AR
Revenue by Shri Ashish Porwal, Sr. DR
Date of Hearing 23.03.2026
Date of Pronouncement 25.03.2026
आदेश / O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first-appeal dated 24.03.2025 passed by learned Commissioner of Income-Tax (Appeals)-Addl/JCIT(A)-1, Chennai ["CIT(A)"] which in turn arises out of intimation of assessment dated 20.06.2024 passed by learned CPC, Bengaluru ["AO"] u/s 143(1) of Income- tax Act, 1961 ["the Act"] for Assessment-Year ["AY"] 2023-24, the assessee has filed this appeal on following solitary ground:
"The intimation order u/s 143(1) was issued by CPC by disallowing the exemption under section 11 taken by the assessee during the assessment Page 1 of 5 National Medical College Educational Trust ITA No. 455/Ind/2025 - AY 2023-24 year as the society is registered under section 12A of the Income Tax Act and eligible for exemption u/s 11 and audit report in form 10B was also submitted, demand of Rs. 3,53,990/- has been created which is not justified and liable to be set aside."
2. The assessee also raised identical ground in first appeal before CIT(A). The Ld. CIT(A) has dismissed assessee's ground/appeal by passing following order:
"3. Grounds of appeal:
The following ground of appeal have been raised by the Appellant:
The intimation order U/s 143(1) was issued by CPC by disallowing the exemption under section 11 taken by the assessee during the assessment year as the society is registered under section 12A of the Income Tax Act, demand of Rs.3,53,990 has been created which is not justified and liable to be set aside.
4. Decision:
4.1 Hearing Notices u/s 250 was issued to the appellant on 24.10.2024, 29.11.2024 and 12.02.2025. However, there has been no response from the appellant. The appeal is adjudicated based on the facts of the case submitted by the appellant and material available on record.
4.2 The return of income was not filed before the limit specified u/s.139(1), the due date being 31.10.2023, the return was filed on 30.12.2023. As per the provisions of S.12A(1)(b) and 12A(1)(ba), the return of income and Audit Report in form 10B had to be filed before 139(1) limit which are also essential conditions and unless complied, the benefit of exemption u/s. 11 cannot be extended to the Appellant. Therefore, act of denial of exemption by CPC is found to be in order.
5. Conclusion:
As a result, the appeal of the Appellant is dismissed."
3. Before us, Ld. AR could not contradict the above order passed by Ld. CIT(A). In fact, Ld. AR also admitted one more factual aspect that the assessee did not claim exemption u/s 11 in the return filed to Income-tax Department. Ld. AR's submission is also manifest from Page-1 of the Page 2 of 5 National Medical College Educational Trust ITA No. 455/Ind/2025 - AY 2023-24 intimation u/s 143(1) issued by AO, the same is scanned and re-produced below for an immediate reference:
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National Medical College Educational Trust ITA No. 455/Ind/2025 - AY 2023-24 The above page clearly reveals the same figure of Rs. 9,61,780/- against "S.No 02 - Total Income" in both columns, viz. "As provided by Taxpayer"
and "As Computed u/s 143(1)". This means, the assessee did not claim exemption u/s 11 in the return of income filed to department.
4. During further deliberations, Ld. AR submitted that the assessee is at present not insisting for exemption u/s 11. The assessee's limited prayer is that the Ld. AO has wrongly computed much higher tax by applying "Maximum Marginal Rate (MMR)" as against "normal tax rate" applicable to assessee. This is apparent from "S.No 03 - Tax liability after relief" of above re-produced page of intimation u/s 143(1), wherein the AO has computed tax liability of Rs. 4,11,104/- as against tax liability of Rs. 1,09,050/- declared by assessee. Ld. AR submits that the assessee is an Association of Persons (AOP) and it is liable to tax at "normal tax rate" only, the Ld. AO has wrongly computed tax @ MMR which is not applicable to assessee. However, the bench made it clear to Ld. AR that the issue of tax rate was neither in first-appeal before Ld. CIT(A) nor in present appeal before us. The same is outside the scope of this appeal and, therefore, we are not inclined to adjudicate the same. The assessee is, however, at liberty to avail any other remedy as permissible in the scheme of Act.
5. In view of above discussions, the present appeal of assessee is devoid of any merit. Consequently, we approve the impugned order passed by Ld. CIT(A). The assessee fails in this appeal.
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National Medical College Educational Trust ITA No. 455/Ind/2025 - AY 2023-24
6. Resultantly, this appeal is dismissed.
Order pronounced in open court on 25/03/2026 Sd/- Sd/-
(PARESH M. JOSHI) (B.M. BIYANI)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Indore
िदनांक /Dated : 25/03/2026
Patel/Sr. PS
Copies to: (1) The appellant
(2) The respondent
(3) CIT
(4) CIT(A)
(5) Departmental Representative
(6) Guard File
By order
UE COPYSr. Private Secretary
Income Tax Appellate Tribunal
Indore Bench, Indore
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