GRAM UTTHAN, Kendrapara V. ACIT, Exemption Circle, Bhubaneswar

ITA 12/CTK/2022

AI Insights

The case involves Gram Utthan, a charitable trust, appealing against the order of the CIT(A), National Faceless Appeal Centre, which upheld the AO's decision rejecting the rectification application under section 154 of the Income Tax Act. The trust was registered under section 12A and recognized under section 80G of the Act. The dispute arose when the trust mistakenly entered the date of creation instead of the date of registration in its tax return for the assessment year 2018-2019. Despite filing the correct Form 10B and audit report, the initial return was processed without granting the exemptions under sections 11 and 12. The Tribunal found that the mistake in the date entry was apparent from the record and directed the AO to rectify it.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127031 (ITAT-CUTTACK)
• Duration Of Justice: 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-01-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 06-02-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Benefit of exemption
• Section: 12; 10B

Judgement Text

आयकर अऩीऱीय अधधकरण, कटक न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री अरुण खोड़पऩया ऱेखा सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER आयकर अऩीऱ सं/ITA No.12/C TK/2022 (ननधाारण वषा / Asses s m ent Year :2018-2019) Gram Utthan, At/Po: Pimudi, Rajakanika, Kendrapara-754220 Vs ACIT, Exemption Circle, Bhubaneswar PAN No. :AAATU 1223 F (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri Sunil Mishra, Advocate राजस्व की ओर से /Revenue by : Shri M.K.Gautam, CIT-DR स ु नवाई की तारीख / Date of Hearing : 19/01/2023 घोषणा की तारीख/Date of Pronouncement : 19/01/2023 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld.CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 24.12.2021, passed in DIN & Order No.ITBA/NFAC/S/250/2021- 22/1038117110(1) for the assessment year 2018-2019. 2. It was submitted by the ld. AR that the assessee is a charitable trust which has been granted registration u/s.12A of the Act on 19.11.2004 and recognition u/s.80G of the Act on 28.06.2016 w.e.f.23.12.2015. It was the submission that for the impugned assessment year when the assessee filed its return of income in the personal information under the column date of formation/incorporation the assessee had entered the date of creation of the trust in place of the date of registration u/s.12A of the Act. It was the submission that all other information to substantiate its claim of ITA No.12/CTK/2022 2 being a charitable trust including the filing of the Form 10B along with the audit report had been complied with. It was the submission that the return filed by the assessee came to be processed u/s.143(1) of the Act wherein the assessee was not granted the benefit of exemption u/s.11 & 12 of the Act as the date of registration u/s.12A of the Act had been mistakenly/wrongly incorporated to be the date of creation of the assessee trust. It was the submission that when this mistake was noticed the assessee had attempted to file revised return on two occasions but the same were rejected as invalid as the returns were filed beyond the statutory time limit provided. Consequently, the assessee had filed an e- nirvan petition on 28.06.2014 and the same was treated as a rectification application u/s.154 of the Act by the AO and the same came to be disposed off vide an order dated 02.03.2021, wherein the rectification application was rejected on the ground that there is no mistake apparent from the record, which enabled the AO to drop the amount demanded. It was the submission that on appeal, the ld.CIT(A) upheld the rejection made u/s.154 of the Act by the AO. It was the submission that the assessee having been registered u/s.12A of the Act and having been granted recognition u/s.80G of the Act and the assessee having also filed all details in its return as a charitable organization and even having filed the requisite Form 10B along with audit report, the mistake in entering the date of creation of the assessee trust as against the date of registration u/s.12A of the Act was a mistake apparent from the record, which was liable to be rectified. It was the prayer that the AO may be directed to ITA No.12/CTK/2022 3 consider the return filed by the assessee by treating the date mentioned in the personal information in the respect of the date of formation/incorporation as the date of registration of the assessee trust. 3. In reply, ld. CIT-DR vehemently supported the order of the ld. CIT(A) and the AO. It was the submission that this is not a mistake apparent from the record and it is the duty of the assessee to be careful on what is entered in the return, insofar as the same is also verified by him. It was the prayer that the orders of the ld. CIT(A) and AO are liable to be upheld. 4. We have considered the rival submissions. A perusal of the ITR-7 copy of which is filed at page 19 of the paper book, personal information in Part A-General, clearly uses the word date of formation/incorporation. Under the common parlance, this would really mean the date of formation of the trust that the revenue required the date of registration u/s.12A of the Act is not specifically mentioned there. Thus, this should be treated as a mistake. It is also recognized that in the return filed, the assessee has claimed the exemptions u/s.11 & 12 of the Act in the computation of the income filed along with the return. The exemptions have been claimed, the requisite Form 10B along with audit report as required to be filed by charitable institution has also been filed. Thus clearly the wrong mentioning of the date is a mistake apparent from the record, which is rectifiable u/s.154 of the Act. In these circumstances, the AO is directed to pass the necessary rectification order u/s.154 of the Act by treating the ITA No.12/CTK/2022 4 said error in mentioning of the date of registration u/s.12A as a mistake apparent from the record. 5. In the result, appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 19/01/2023. Sd/- (अरुण खोड़पऩया) (ARUN KHODPIA) Sd/- (जाजज माथन) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 19/01/2023 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : आदेशान ु सार/ BY ORDER, (Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack 1. अऩीऱाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. पवभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यापऩत प्रयत //True Copy//