GURDWARA SRI GURU HARGOBIND SAHIB,CHANDIGARH V. INCOME TAX OFFICER, EXEMPTION WARD, CHANDIGARH, CHANDIGARH

ITA 1092/CHANDI/2024

AI Insights

The case involves Gurdwara Sri Guru Hargobind Sahib, which appealed against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2018-19. The primary issue was the rejection of the assessee's application for rectification under Section 154 of the Income Tax Act, which was initially processed under Section 143(1). The application was rejected due to being time-barred, as it was filed 861 days late. The ITAT found that the delay was partly due to the COVID-19 pandemic and previous handling by the Tax Consultant. The Tribunal decided to condone the delay and directed the AO to reassess the income on a net basis, excluding expenditures incurred in earning such income.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314639 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Other Referred Cases: ITA No. 583 & 584/CHD/2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: B.M. MONGA
• Keywords: Set aside
• Section: 154

Judgement Text

"आयकर अपील य अ धकरण,च\u0010डीगढ़ \u0014यायपीठ, च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 1092/CHD/2024 नधा\u0011रण वष\u0011 / Assessment Year: 2018-19 Gurdwara Sri Guru Hargobind Sahib, Sector 30-B, Chandigarh. Vs The ITO (Exemptions), Ward, Chandigarh. \u0016थायी लेखा सं./PAN NO: AABTG7932L अपीलाथ\u001a/Appellant \u001b यथ\u001a/Respondent Assessee by : Shri B.M. Monga, Advocate Revenue by : Shri Vivek Vardhan, Addl.CIT, Sr.DR Date of Hearing : 05.05.2025 Date of Pronouncement : 07.05.2025 PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 05.09.2024 passed for assessment year 2018-19. 2. With the assistance of ld. Representative, we have gone through the record carefully. The income of the assessee Trust was processed under Section 143(1) of the Act. It has ITA No.1092/CHD/2024 A.Y.2018-19 2 filed an application under Section 154 of the Income Tax Act for rectification, but such application was rejected on 12.09.2020. Assessee has filed an appeal before the CIT(A) on 20.02.2023. Thus, this appeal was time barred by 861 days. Ld. CIT(A) did not condone the delay and dismissed the appeal. 3. A perusal of the record would indicate that the litigation of the assessee Trust was not handled by the Tax Consultant properly, not only for this assessment year but for assessment year 2019-20 and 2020-21. The appeals for all these years have been made time barred. In the present year, it was a Covid period when 154 order was passed and upto the month of May, 2022, delay in filing appeal has been condoned by the Hon'ble Supreme Court. Therefore, effectively the delay in the case of the assessee is from May, 2022 upto February,2023. We find that while processing the return of the assessee, CPC has taxed it on gross income which is not at all to be done by the Department. Income is to be assessed after excluding the expenditure for earning such income. ITA No.1092/CHD/2024 A.Y.2018-19 3 4. Considering the case of a Trust whose income has been assessed on gross basis, we deem it appropriate that delay deserves to be condoned in this case. 5. In the earlier year, Tribunal has set aside this issue to the file of AO for fresh adjudication vide ITA No. 583 & 584/CHD/2024. The income of the assessee deserves to be assessed on net basis and not on gross basis. Accordingly, we condone the delay in filing the appeal before the CIT(A). We adjudicate the issue on merit by setting aside the dispute to the file of AO for re-determination of taxable income of the assessee. The ld. AO is directed to follow the order of the ITAT passed in assessment year 2019-20 and 2021-22. This exercise be carried out after providing due opportunity of hearing to the assessee. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 07.05.2025. Sd/- Sd/- (KRINWANT SAHAY) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” ITA No.1092/CHD/2024 A.Y.2018-19 4 आदेश क\u0002 \u0003ितिलिप अ ेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "