Kamla Nehru Public School Society, Faridabad V. DCIT CPC , Banglore

ITA 1223/DEL/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6879 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 15-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: EKTA VISHNOI
• Section: 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH SMC SMC SMC SMC : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.S. PANNU BEFORE SHRI G.S. PANNU BEFORE SHRI G.S. PANNU BEFORE SHRI G.S. PANNU, ,, , VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT ITA NO. ITA NO. ITA NO. ITA NO. 1223/DEL/2019 1223/DEL/2019 1223/DEL/2019 1223/DEL/2019 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2016 2016 2016 2016 - -- - 17 1717 17 M/S KAMLA NEHRU PUBLIC M/S KAMLA NEHRU PUBLIC M/S KAMLA NEHRU PUBLIC M/S KAMLA NEHRU PUBLIC SCHOOL SOCIETY, SCHOOL SOCIETY, SCHOOL SOCIETY, SCHOOL SOCIETY, NEAR COMMUNITY CENTRE, NEAR COMMUNITY CENTRE, NEAR COMMUNITY CENTRE, NEAR COMMUNITY CENTRE, SECTOR SECTOR SECTOR SECTOR- -- -46, 46, 46, 46, FARIDABAD, FARIDABAD, FARIDABAD, FARIDABAD, HARYANA HARYANA HARYANA HARYANA 12 1212 121 003. 1 003. 1 003. 1 003. PAN : AABAK1483H. PAN : AABAK1483H. PAN : AABAK1483H. PAN : AABAK1483H. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CPC, BANGALORE. CPC, BANGALORE. CPC, BANGALORE. CPC, BANGALORE. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DINESH KUMAR AGGARWAL, CA. RESPONDENT BY : MS. EKTA VISHNOI, SENIOR DR. DATE OF HEARING : 24.09.2019 24.09.2019 24.09.2019 24.09.2019 DATE OF PRONOUNCEMENT : 31.10.2019 31.10.2019 31.10.2019 31.10.2019 ORDER ORDER ORDER ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), FARIDABAD DATED 17 TH DECEMBER, 2018 WHICH IN TURN HAS ARISEN FROM THE ORDER OF THE ASSESSING OFFICER PASS ED UNDER SECTION 143(1) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE A CT) DATED 19 TH JUNE, 2017 FOR THE ASSESSMENT YEAR 2016-17. 2. IN THIS APPEAL, ALTHOUGH ASSESSEE HAS RAISED MUL TIPLE GROUNDS OF APPEAL, BUT, ESSENTIALLY, THE GRIEVANCE EMANATES FR OM THE DECISION OF CIT(A) IN UPHOLDING ACTION OF THE ASSESSING OFFICER IN DENYING EXEMPTION TO THE ASSESSEE UNDER SECTION 10(23C)(III AD) OF THE ACT IN THE INTIMATION PASSED UNDER SECTION 143(1) OF THE A CT DATED 19 TH JUNE, 2017. ITA-1223/DEL/2019 2 3. IN ORDER TO APPRECIATE THE RIVAL STANDS, THE FOL LOWING DISCUSSION IS RELEVANT. THE APPELLANT BEFORE ME IS A SOCIETY REG ISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860 WITH THE MAIN OBJE CTIVE OF RUNNING EDUCATIONAL INSTITUTION. IT HAS BEEN EXPLAINED THA T ASSESSEE IS RUNNING AN EDUCATIONAL INSTITUTION AND IT EXISTS SOLELY FOR EDUCATIONAL PURPOSES AND NOT FOR PURPOSES OF PROFIT. IT HAS ALSO BEEN B ROUGHT OUT THAT THE AGGREGATE ANNUAL RECEIPT OF THE EDUCATIONAL INSTITU TION IS `17,50,582/-, WHICH IS WITHIN THE LIMIT PRESCRIBED FOR THE PURPOS ES OF EXEMPTION UNDER SECTION 10(23C)(IIIAD) OF THE ACT. EXPLAININ G THE BACKGROUND OF THE DISPUTE, THE LEARNED REPRESENTATIVE OF THE ASSE SSEE POINTED OUT THAT WHILE FILING THE RETURN OF INCOME, ASSESSEE HA D RETURNED NIL TAX LIABILITY ON THE PLEA THAT THE SURPLUS ON ACCOUNT O F EDUCATIONAL ACTIVITIES OF `2,49,859/- WAS EXEMPT FROM TAX IN VI EW OF SECTION 10(23C)(IIIAD) OF THE ACT. THE ASSESSING OFFICER, WHILE FRAMING THE INTIMATION UNDER SECTION 143(1) OF THE ACT, INSTEAD , TREATED THE AFORESAID SUM AS TAXABLE AND ACCORDINGLY, A TAX LIA BILITY OF `96,280/- HAS BEEN RAISED. THE CIT(A) HAS ALSO AFFIRMED THE AFORESAID ACTION. 4. A PERUSAL OF THE ORDERS OF AUTHORITIES BELOW REV EAL THAT THE PRIMARY REASON WEIGHING WITH THE LOWER AUTHORITIES WAS THAT IN THE RETURN OF INCOME FILED, NO SPECIFIC CLAIM FOR EXEMP TION HAS BEEN MADE UNDER SECTION 10(23C)(IIIAD) OF THE ACT. IN THIS C ONTEXT, IT IS NOTICEABLE THAT THE RETURN OF INCOME WAS FURNISHED BY THE ASSE SSEE IN FORM NO.5 INSTEAD OF FORM NO.7, WHICH WAS THE CORRECT FORM IN WHICH THE RETURN OF INCOME OUGHT TO HAVE BEEN FILED. IN THIS CONTEX T, THE STAND OF THE ASSESSEE HAS BEEN THAT IN VIEW OF SECTION 139(4C) O F THE ACT READ WITH SECTION 10(23C)(IIIAD) OF THE ACT AND RULE 2BC OF T HE INCOME-TAX RULES, 1962, ALL THE REQUIREMENTS OF THE EXEMPTION UNDER S ECTION 10(23C)(IIIAD) STAND FULFILLED AND THE PRESCRIBED F ORM FOR FILING THE RETURN OF INCOME WAS INDEED FORM NO.7. BEFORE THE LOWER AUTHORITIES AS WELL AS BEFORE ME, IT HAS BEEN EXPLAINED BY THE ASSESSEE THAT THE PAN NUMBER ALLOTTED BY THE DEPARTMENT WAS IN THE ST ATUS OF AN AOP ITA-1223/DEL/2019 3 AND, AS A CONSEQUENCE, THE RETURN WAS FILED ERRONEO USLY IN FORM NO.5 ALTHOUGH THE CORRECT FORM WAS ITR 7. SINCE IN FORM NO.5 THERE WAS NO SPECIFIC COLUMN IN ORDER TO ENUMERATE THE CLAIM OF EXEMPTION UNDER SECTION 10(23C)(IIIAD), IT COULD NOT BE APPROPRIATE LY FILLED UP. IN THE AFORESAID FACTUAL MATRIX, THE CIT(A) PROCEEDED TO D ENY THE EXEMPTION ON THE GROUND THAT THE SAME WAS NOT APPROPRIATELY F ILLED UP IN THE RETURN OF INCOME, WHICH IS MERELY A TECHNICAL ERROR . SUBSTANTIVELY SPEAKING, THERE IS NO DISPUTE THAT THE ASSERTIONS O F THE ASSESSEE FOR ITS ENTITLEMENT FOR EXEMPTION UNDER SECTION 10(23C)(III AD) OF THE ACT ARE JUSTIFIED. THEREFORE, IN MY CONSIDERED OPINION, IT WOULD BE IN THE FITNESS OF THINGS THAT THE EXEMPTION UNDER SECTION 10(23C)(IIIAD) OF THE ACT IS ALLOWED TO THE ASSESSEE. I DIRECT ACCORDING LY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED AS ABOVE. DECISION PRONOUNCED IN THE OPEN COURT ON 31 ST OCTOBER, 2019. SD/- (G.S. PANNU (G.S. PANNU (G.S. PANNU (G.S. PANNU ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S KAMLA NEHRU PUBLIC SCHOOL SOCI ETY, M/S KAMLA NEHRU PUBLIC SCHOOL SOCIETY, M/S KAMLA NEHRU PUBLIC SCHOOL SOCIETY, M/S KAMLA NEHRU PUBLIC SCHOOL SOCIETY, NEAR COMMUNITY CENTRE,SECTOR NEAR COMMUNITY CENTRE,SECTOR NEAR COMMUNITY CENTRE,SECTOR NEAR COMMUNITY CENTRE,SECTOR- -- -46, 46, 46, 46, FARIDABAD, HARYANA FARIDABAD, HARYANA FARIDABAD, HARYANA FARIDABAD, HARYANA 121 003. 121 003. 121 003. 121 003. 2. RESPONDENT : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CPC, B CPC, B CPC, B CPC, BANGALORE. ANGALORE. ANGALORE. ANGALORE. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR