ABHIYAN INTERNATIONAL SAMITI,PRYAGRAJ V. INCOME TAX OFFICER -EXEMPTION, , PRAYAGRAG

ITA 152/ALLD/2024

AI Insights

The case involves Abhiyan International Samiti, a society registered under the Societies Registration Act, 1860, and sections 12AA and 80G of the Income Tax Act, 1961. The society filed a return declaring nil income for the assessment year 2019-20, but mistakenly selected section 10(23C)(via) for exemption instead of section 12AA. The initial assessment under section 143(1) resulted in a tax liability, which the society contested. The CIT(A) dismissed the appeal, leading to the Tribunal's review. The Tribunal found that the society's name and PAN were consistent with the registration under section 12AA, and accepted the corrected audit report date, thus allowing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633369 (ITAT-ALLAHABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961, Societies Registration Act, 1860
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A.K. SINGH
• Assessee Lawyers: N.C.AGRAWAL
• Keywords: Set aside
• Section: 12AA; 10B; 80G

Judgement Text

"I.T.A. No.152/Alld/2024 Assessment Year:2019-20 1 IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH, ALLAHABAD BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER AND SHRI SUBHASH MALGURIA, JUDICIAL MEMBER I.T.A. No.152/Alld/2024 Assessment year:2019-20 Abhiyan International Samiti, A-11, Patrakar Colony, Ashok Narag, Prayagraj. PAN:AABAA0386P Vs. Asstt. Director, C.P.C., Bangalore. (Appellant) (Respondent) O R D E R PER SUBHASH MALGURIA:J.M. This appeal vide I.T.A. No.152/Alld/2024 has been filed by the assessee for assessment year 2019-20 against impugned appellate order dated 06/09/2024 (DIN & Order No.ITBA/APL/S/250/2024- 25/1068419102(1) of ADDL/Jt. Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. 2. The facts of the case, in brief, are that the assessee is a society registered under the Societies Registration Act, 1860. The assessee society Appellant by Dr. N. C. Agrawal, C.A. Nita Goyal, C.A. Respondent by Shri A. K. Singh, Sr. D.R. I.T.A. No.152/Alld/2024 Assessment Year:2019-20 2 is also registered u/s 12AA and 80G of the Income Tax Act, 1961 (“the Act” for short). The assessee filed its return of income on 26/06/2019 under section 139(1) of the Act declaring nil income. The accounts of the assessee are audited u/s 12A(1)(b) of the Act and report in Form 10B was filed as required on 30/05/2019. During the year under consideration, the assessee has rendered charitable activities in terms of its objects. In the return filed, the assessee has selected section 10(23C)(via) of the Act whereas exemption under section 12AA should have been selected. In view of this, the exemption u/s 10(23C)(via) was not allowed. In the impugned order passed under section 143(1), the income has been taken at Rs.5,48,647/- resulting in net tax liability at Rs.1,71,179/- and aggregate tax liability at Rs.2,03,775/-. Aggrieved with the impugned order, the assessee went in appeal before the learned CIT(A). The learned CIT(A) did not consider the claim of the assessee and dismissed the appeal. Aggrieved with the order of learned CIT(A), now the assessee is in appeal before the Income Tax Appellate Tribunal. 3. We have heard the rival parties and have gone through the material placed on record. The observation of the learned CIT(A) while dismissing the appeal is that in the return filed, the assessee has selected section 10(23C)(via) of the Act whereas exemption under section 12AA should have been selected. The learned CIT(A) has also observed that from Form 35 and intimation wherein the name of the assessee is mentioned is “Abhiyan International Samiti’ whereas it is noticed from the order under section 12AA dated 29/01/2009, passed by learned CIT, Allahabad, the name of the assessee is “Abhiyan International” and “Samiti” is not found mentioned. The learned CIT(A) has also observed that the auditor has signed the report on 30/04/2018 for the period ending on 31/03/2019 so the mute question that arises is how the audit report of 31/03/2019 can be signed on I.T.A. No.152/Alld/2024 Assessment Year:2019-20 3 30/04/2018. During the course of hearing, learned Counsel for the assessee submitted that learned CIT, Allahabad has issued registration certificate u/s 12AA of the Act in the name of Abhiyan International (PAN AABAA0386P). The claim has been made in the name of Abhiyan International Samiti with the same PAN AABAA0386P; meaning thereby that Abhiyan International Samiti and Abhiyan International are the same. As regards the objection of learned CIT(A) that the auditor has signed the report on 30/04/2018 for the period ending on 31/03/2019, the assessee has filed affidavit of the Chartered Accountant Vishal Saran Lal, Membership No. 408171 (placed at paper book page No. 31-36) wherein the Chartered Accountant has accepted that the audit was conducted by him and he issued the report in the prescribed From No. 10B along with prescribed particulars as per the Income Tax Rules, 1962 on 30/04/2019 but inadvertently, due to typographical error, it was mentioned as 30/04/2018. Keeping in view the facts and circumstances of the case, the impugned order dated 06/09/2024, passed by learned CIT(A), is set aside and the appeal of the assessee is allowed. 4. In the result, the appeal of the assessee stands allowed. (Order pronounced in the open court on 12/06/2025) Sd/. Sd/. (ANADEE NATH MISSHRA) (SUBHASH MALGURIA) Accountant Member Judicial Member Dated:12/06/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Allahabad "