DEPUTY COMMISSIONER OF INCOME TAX EXEMPTIONS BHUBANESWAR, BHUBANESWAR V. NM LOK KALYAN TRUST, BHUBANESWAR

ITA 429/CTK/2024

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax (Exemptions), Bhubaneswar against NM Lok Kalyan Trust concerning the assessment year 2018-19. The primary issue was the denial of exemption under section 11 of the Income Tax Act due to the assessee's failure to claim it in the return of income and a typographical error in citing the wrong section (10(23C)(via)) instead of section 11. The CIT(A) had directed the Assessing Officer to verify and allow the exemption, which the revenue challenged. The Tribunal supported the CIT(A)'s decision, emphasizing the assessee's compliance with procedural requirements and the inapplicability of penalties for clerical errors in tax filings.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 25944 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 18-11-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 18-10-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: M.R. SAHU
• Keywords: Ignorance of law; Benefit of exemption
• Section: 11; 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE MANISH AGARWAL Dy. Commissioner of Income Tax (Exemptions), Bhubaneswar. PAN/GIR No. (Appellant Per Bench This is an CIT(A), NFAC, Delhi dated 18/10021748 for the ass 2. Shri M.R.Sahu, Kumar, ld CIT DR appeared for the revenue. 3. It was submitted by ld CIT DR that the assessee is benefit of exemption and since it is not grant of registration IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.429/CTK/2024 Assessment year: 2018-19 Commissioner of Income Tax (Exemptions), Bhubaneswar. Vs. NM Lok Kalyan Trust, A/14, Surya Nagar Bhubaneswar. No.AAATN 6304 N (Appellant) .. ( Respondent Assessee by : Shri M.R.Sahu, CA Revenue by : Shri Sanjay Kumar, CIT DR Date of Hearing : 18/11/20 Date of Pronouncement : 18/11/20 O R D E R This is an appeal filed by the revenue against the order of the ld CIT(A), NFAC, Delhi dated 29.8.2024 in Appeal No. for the assessment year 2018-19. M.R.Sahu, ld AR appeared for the assessee and Shri DR appeared for the revenue. It was submitted by ld CIT DR that the assessee is not benefit of exemption u/s. 11 as it was not claimed in the return of income and since it is not grant of registration u/s.10(23C)(vi) of the Act, P a g e 1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, MEMBER , ACCOUNTANT MEMBER NM Lok Kalyan Trust, A/14, Surya Nagar, unit-7, Respondent) Shri Sanjay Kumar, CIT DR 2024 024 against the order of the ld in Appeal No.NFAC/2017- the assessee and Shri Sanjay not entitled to the as it was not claimed in the return of income u/s.10(23C)(vi) of the Act, ITA No.429/CTK/2024 Assessment Year : 2018-19 P a g e 2 | 3 therefore, the claim of exemption u/s.10(23C)(via) is not allowable to it. It was the submission that the ld CIT(A) erred in directing the Assessing Officer to verify the assessee’s claim u/s.11 of the Act and allow the same. 4. In reply, ld AR vehemently supported the order of the ld CIT(A). It was the submission that the assessee was entitled to the claim of exemption u/s.11 of the Act and ld CIT(A) has rightly directed the Assessing Officer to examine the claim and allow necessary relief. It was the further submission that the order of the Assessing Officer was u/s.143(1), wherein, entire receipts have been brought to tax and entire application has been disallowed. It was the submission that it is not permissible in an intimation u/s.143(1) of the Act. 5. We have considered the rival submissions. A perusal of the Central Scrutiny Report as filed alongwith the appeal filed by the revenue clearly shows that the ld CIT(A) has observed that the assessee is registered u/s.12AA of the Act vide registration certificate No.22/2007-08 dated 29.8.2007 and had duly filed Form No.10B, which makes it eligible to avail exemption u/s.11. No exemption was granted by CPC simply because the appellant, owing a typographical error, had wrongly mentioned a wrong section 10(23C)(via) of the Act. Ld CIT(A) by referring to the CBDT circular No.14(XI-35) of 1955 dated April 11, 1955, has observed that the Assessing officer should not take advantage of ignorance of law or mistake committed by the assessee while claiming of exemption in the return of income. The ITA No.429/CTK/2024 Assessment Year : 2018-19 P a g e 3 | 3 above findings of ld CIT(A) have not been dislodged by the revenue before us. Moreover, assesse has already filed Form 10B for making claim of exemption u/s.11 of the Act. This being so, we are of the view that the findings as arrived at by the ld CIT(A) is on right footings and does not call for any interference. In these circumstances, the grounds of appeal raised by the revenue stands dismissed. 6. In the result, appeal of revenue stands dismissed. Order dictated and pronounced in the open court on 18/11/2024. Sd/- sd/- (Manish Agarwal) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 18/11/2024 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.Secretary ITAT, Cuttack 1. The Appellant : Dy. Commissioner of Income Tax (Exemptions), Bhubaneswar 2. The Respondent: NM Lok Kalyan Trust, A/14, Surya Nagar, unit-7, Bhubaneswar 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, Bhubaneswar 5. DR, ITAT, 6. Guard file. //True Copy// "