Dy. Commissioner Of Income Tax( Exemptions), Bhubaneswar V. Nabajuga Educational And Charitable Trust, Dhenkanal

ITA 127/CTK/2022

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax (Exemptions), Bhubaneswar against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which had allowed the exemption under Section 11 of the Income Tax Act to Nabajuga Educational And Charitable Trust for the assessment year 2018-2019. The revenue's contention was based on the late submission of the audit report under Form 10B, which was filed one day after the due date. The CIT(A) had condoned this delay, leading to the revenue's appeal. The tribunal dismissed both the revenue's appeal and the assessee's cross objection, supporting the CIT(A)'s decision.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 127036 (ITAT-CUTTACK)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 26-12-2022
• Assessment Year: 2018-2019
• Appeal Filed On: 11-07-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 11; 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.127/C TK/2022 (ननधाारण वषा / Asses s m ent Year :2018-2 019) Dy. CIT(Exemptions), Bhubaneswar Vs Nabajuga Educational And Charitable Trust, Flat No.N/4-208, IRC Village, Khorda-751015 PAN No. : AAATN 7735 R AND Cross Objection No.03/CTK/2022 (Arising out of ITA No.127/CTK/2022) (ननधाारण वषा / Assessment Year :2018-2019) Nabajuga Educational And Charitable Trust, Flat No.N/4-208, IRC Village, Khorda-751015 Vs Dy. CIT(Exemptions), Bhubaneswar PAN No. : AAATN 7735 R (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) राजस्व की ओर से /Revenue by : Shri M.K.Gautam, CIT-DR ननधााररती की ओर से /Assessee by : Shri K.C.Jena, CA स ु नवाई की तारीख / Date of Hearing : 27/12/2022 घोषणा की तारीख/Date of Pronouncement : 27/12/2022 आदेश / O R D E R Per Bench : The revenue has filed an appeal being ITA No.127/CTK/2012 against the order passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 17.12.2021 for the assessment year 2018-2019, in DIN & Order No.ITBA/NFAC/S/250/2021-22/1037882010(1). The assessee has also filed cross objection to the above appeal of the revenue. ITA No.127/CTK/2022 & CO No.03 /CTK/2022 2 2. On perusal of the appeal record, it is found that the appeal of the revenue is barred by 147 days. In this regard, a petition for condonation of delay has been filed by the revenue stating sufficient reasons for delay in filing the present appeal, to which the ld. AR did not object. In view of the above, we condone the delay of 147 days in filing the present appeal and appeal of the revenue is heard finally. 3. At the time of hearing, ld. AR submitted that he did not want to press the cross objection and has withdrawn the same. In this regard, ld. AR has also endorsed in the file to that effect. Consequently, the cross objection filed by the assessee is dismissed as withdrawn. 4. In the revenue’s appeal, it was submitted by the ld. CIT-DR that the assessee claims to be a charitable trust. The due date of filing of the return was 30.09.2018 for the impugned assessment year. The assessee filed its return of income on 31.10.2018 but the said return did not accompany with the audit report under Form 10B of the Act. It was submitted that the said Form 10B had been filed only on 01.11.2018. Consequently, while passing the intimation u/s.143(1) of the Act, the assessee was not given the benefit of exemption u/s.11 of the Act in respect of excess income over expenditure. It was the submission that the ld. CIT(A) condoned the delay of one day in filing of the audit report on the ground that the audit report was filed before the completion of the assessment and, therefore, the AO was to take into consideration the Form 10B and grant the assessee the benefit of exemption u/s.11 of the ITA No.127/CTK/2022 & CO No.03 /CTK/2022 3 Act. It was the submission that the CBDT has issued Circular No.2/2020, dated 03.01.2020, wherein for the assessment year 2018-2019, the power to condone the delay upto 365 days has been granted only to the Commissioner of Income Tax u/s.119(2) of the Act and not to the CIT(A). It was the submission that the order of the ld. CIT(A) is liable to be reversed. 5. In reply, ld. AR vehemently supported the order of the ld. CIT(A). 6. We have considered the rival submissions. At the outset, if the return filed on 31.10.2018 was not accompanied by the audit report, then it was incumbent upon the revenue to issue notice u/s.139(9) of the Act to treat the return filed by the assessee as defective. Admittedly, this has not been done. This could be because when intimation was issued the audit report was available on the records. Thus, the delay in filing of the audit report has already been condoned by the revenue and it no more lies in the mouth of the revenue to state that the assessee should be denied the benefit of Section 11 of the Act because the audit report has been filed delayed by one day. This being so, as it is noticed that the assessee has filed its audit report before the completion of the assessment, we are of the view that the finding of the ld. CIT(A) in deleting the disallowance and directing the AO to grant the assessee the benefit of Section 11 of the Act is on right footing and does not call for any interference. ITA No.127/CTK/2022 & CO No.03 /CTK/2022 4 7. In the result, appeal of the revenue and cross objection of the assessee are dismissed. Order dictated and pronounced in the open court on 27/12/2022. Sd/- (अरुण खोड़पऩया) (ARUN KHODPIA) Sd/- (जाजज माथन) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 26/12/2022 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//