· Assessee, a trust, came into existence on 15.08.1945. Assessee filed its return of income in the status of an AOP. Assessee filed its return of income in Form ITR 5 and the status adopted was “any other AOP / BOI / artificial juridicial person”.
· The AO, however, issued an intimation u/s 143(1) in which he adopted the status of the assessee from an AOP to a person taxable in terms of section 139(4A), holding that the applicable form of return was Form No. 7. On this basis, the AO determined the tax liability of the assessee at a sum of Rs.2,81,826/-.
· The assessee, being aggrieved by the same, filed an appeal before the CIT(A), contending that while processing the return u/s 143(1), the AO cannot unilaterally change the status of the assessee from an AOP to a person falling within the ambit of section 139(4A). This contention was, however, rejected by the CIT(A).
· Aggrieved by the order of CIT(A), assessee preferred an appeal before ITAT.
· The Tribunal, after going through the provisions of section 143(1) of the Act observed that the change of status, as done by the AO, does not fall within any of the clauses from (a) to (e) of section 143(1). The Court further observed that the change of status would also not fall within the meaning of expression “an incorrect claim apparent from any information in the return” as laid down in Explanation (a) to section 143(1).
· Therefore, the Tribunal concluded that the intimation issued by the AO u/s 143(1), changing the status of the assessee, was not in accordance with the provisions of law. The AO was directed by the Tribunal to modify the intimation u/s 143(1) accepting the return of income of the assessee.
For further reading, refer the attachment.
Further Reading