BANGIYA SANGIT PARISHAD,HOWRAH V. I.T.O., WARD - 29(1) , KOLKATA

ITA 479/KOL/2025

AI Insights

The case involves Bangiya Sangit Parishad, a trust, appealing against the order of the CIT(A) which upheld the assessment order passed by the CPC. The assessment order disallowed the expenses claimed under sections 11 and 12 of the Income Tax Act, treating the gross receipts of the trust as income, due to the absence of registration under section 12A at the time of assessment. The tribunal found that the provisional registration under section 12AA was granted before the assessment order was passed, and thus, the expenses should not have been disallowed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772409 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARCHANA GUPTA
• Assessee Lawyers: SANJAY BHATTACHARAYA
• Keywords: Set aside
• Section: 12

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI DUVVURU RL REDDY, VICE PRESIDENT AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.479/KOL/2025 (निर्धारण वर्ा / Assessment Year : 2021-2022) Bangiya Sangit Parishad, 2A, Panchanantala Road, Howrah-711101 Vs ITO Ward-29(1), Kolkata PAN No. :AAATB 8024 B (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : Shri Sanjay Bhattacharaya, FCA रधजस्व की ओर से /Revenue by : Ms. Archana Gupta, Addl.CIT-Sr. DR सुनवाई की तारीख / Date of Hearing : 06/08/2025 घोषणा की तारीख/Date of Pronouncement : 26/08/2025 आदेश / O R D E R Per Rajesh Kumar, AM : This is an appeal filed by the assessee against the order dated 10.01.2025, passed by the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2021-22. 2. The only issue raised by the assessee is against the dismissal of the appeal of the assessee by CIT(A) upholding the assessment order passed by the CPC wherein the exemption u/s.11 & 12 of the Act claimed was rejected thereby disallowing the entire expenses incurred by the trust. 3. Facts in brief are that the assessee filed its return of income on 30.03.2022 within the extended due date i.e. 31.12.2021. The AO/CPC while processing the return of income u/s.143(1) of the Act noted that the assessee has not registered u/s.12A of the Act and consequently disallowed the expenses thereby assessing the gross receipts of the assessee. In the appellate proceedings, the ld.CIT(A) also dismissed the appeal of the assessee, wherein the ld.CIT(A) noted that the assessee Printed from counselvise.com ITA No.479/KOL/2025 2 has not filed the income tax return and audit report within the extended time limit for which the assessee has not given any plausible explanation. 4. After hearing the rival contentions and perusing the material available on record, we find that the assessee trust is registered u/s.12A of the Act by provisional registration granted on 22.05.2021 whereas the order u/s.143(1) of the Act was passed by the AO/CPC on 27.05.2021. Similarly the ld.CIT(A) passed the appellate order on 10.01.2025 by ignoring the fact that the assessee is enjoying the provisional registration u/s.12A of the Act. We note that both the authorities below have wrongly decided the issue. In our opinion, the order passed by the AO/CPC is totally incorrect as has completely overlooked the provisional registration u/s.12AA of the Act as referred to above and assessed the gross receipt as income of the trust. Thus, we set aside the order of the ld. CIT(A) and direct the AO/CPC to examine the issue afresh considering the fact that the assessee has registration u/s.12AA of the Act. 5. In the result, appeal of the assessee is allowed for statistical purposes Order pronounced in the open court on 26/08/2025. Sd/- (DUVVURU RL REDDY) Sd/- (RAJESH KUMAR) उपाध्यक्ष / VICE PRESIDENT लेखा सदस्य/ ACCOUNTANT MEMBER कोलकाता Kolkata; ददनाांक Dated 26/08/2025 Prakash Kumar Mishra, Sr.P.S. Printed from counselvise.com ITA No.479/KOL/2025 3 आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "