DEPUTY COMMISSIONER OF INCOME TAX(EXEMPTIONS), NEW DELHI V. WATER MANAGEMENT AND PLUMBING SKILLS COUNCIL, DELHI

ITA 4119/DEL/2024

AI Insights

The case revolves around an appeal by the Revenue against the order of the Ld. Addl./JCIT (Appeals)-1, Lucknow, which had deleted the addition made by the CPC due to the assessee's delay in filing Form 9A. The assessee, Water Management & Plumbing Skills Council, argued that they had filed the form correctly but made inadvertent mistakes which were accepted by the Ld.CIT(A). The tribunal upheld the CIT(A)'s decision, emphasizing that the technicalities should not override the substantive compliance with the statutory requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34224 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: ANKUR SHARMA
• Section: 143(1); 11; 12; 2; 10B

Judgement Text

"ITA No.4119/Del/2024 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.4119/Del/2024 िनधा\tरणवष\t/Assessment Year:2020-21 DCIT (Exemptions), Room No.2408, E-2 Block, Pratyaksh Kar Bhawan, Civic Centre, New Delhi. बनाम Vs. Water Management & Plumbing Skills Council, Unit 606 & 609, Okhla Industrial Estate, S.O. Tehkhand South East, Delhi. PAN No.AADCI0115N अपीलाथ\u0014 Appellant \u0016\u0017यथ\u0014/Respondent Assessee by Shri Ankur Sharma, CA Revenue by Shri Om Prakash, Sr. DR सुनवाईक\bतारीख/ Date of hearing: 02.01.2025 उ\u000eोषणाक\bतारीख/Pronouncement on 24.01.2025 आदेश /O R D E R PER C.N. PRASAD, J.M. This appeal is filed by the Revenue against the order of the Ld. Addl./JCIT (Appeals)-1, Lucknow in deleting the addition made by the CPC on account of delay in filing Form 9A by the assessee. 2. Ld. Counsel for the assessee, at the outset, submits that even though the assessee has duly furnished deemed application as per ITA No.4119/Del/2024 2 clause (2) to Explanation 2 to section 11(1) vide Form No.9A the CPC disallowed and made addition without accepting Form 9A by denying the benefit u/s 11 of the Act. Ld. Counsel submits that there were some inadvertent mistakes while filing the return which was brought to the notice of the Ld.CIT(A) and the Ld.CIT(A) accepted the claim of the assessee and, therefore, pleaded that the order of the Ld.CIT(A) be sustained. 3. Heard rival submissions, perused the orders of the authorities below. 4. We have carefully gone through the findings of the Ld.CIT(Appeals) which are as under: - “6.1 The statement of facts, grounds of appeal, and the order appealed against have been thoroughly examined. The central issue for adjudication among all the grounds of appeal raised pertains to the sole issue of denying the benefit of Section 11 & Section 12 of the Act while processing the return of Income under section 143(1) of the Act. Therefore, all grounds of appeal are being consolidated and adjudicated together. 6.2 The appellant submitted that for the AY 2020-21, it was the first instance where it undertook the filing of Form 9A. Due to an inadvertent lack of comprehensive understanding and familiarity with the computational and procedural intricacies involved in accurately completing Form 9A, a typographical error occurred. This error inadvertently resulted in the entry of amounts as Rs. 0 in several critical fields. In subsequent Assessment Years, it has demonstrated due diligence and accuracy in filing Form ITA No.4119/Del/2024 3 9A, as evidenced by precise filings appropriately assessed under Section 143(1) of the Income Tax Act, 1961. 6.3 In the present case, the return of income, Form 10B, and Form 9A relevant for claiming exemption u/s 11 of the Act have been filed within the stipulated time as prescribed in the Income Tax Act, 1961. In Form 10B, under S. no. 2, which pertains to the exercise of the option under clause (2) of the explanation to section 11(1) of the Act, the appellant has indicated ‘yes’ and exercised the option in respect of the amount of Rs. 2,66,29,795/-. However, in Form 9A, column A, the amount has been inadvertently filed as zero. According to the appellant, this is an inadvertent mistake. 6.4 The appellant's contention is supported by the details in Form 10B, showing that the option has been exercised, and Form 9A has been filed. Therefore, based on this, the appeal of the appellant is allowed, and the jurisdictional AO is directed to take remedial action in this regard.” 5. The findings of the Ld. CIT(A) suggest that the assessee had made some computational errors and as a matter of fact the assessee had filed Form 9A and had exercised option under the statute and the details were also furnished in Form 10B and, therefore, the Ld.CIT(A) deleted the addition. In our view the Ld.CIT(A) has rightly deleted the addition which was otherwise made on account of technicalities. We sustain the order of the Ld.CIT(A) and reject the grounds raised by the Revenue. ITA No.4119/Del/2024 4 6. In the result, appeal of the Revenue is dismissed. Order pronounced in the open court on 24.01.2025 Sd/- Sd/- (NAVEEN CHANDRA) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 24.01.2025 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order Assistant Registrar, ITAT: Delhi Benches-Delhi "