Umakant Gajanan Foundation, Pune V. Income Tax Officer, Ward-1(1), Exemption, Pune

ITA 158/PUN/2023

AI Insights

The case involves Umakant Gajanan Foundation, a charitable trust, which appealed against the order of the National Faceless Appeal Centre (NFAC) that dismissed their appeal regarding the denial of exemption under section 11 of the Income Tax Act, 1961, for the assessment year 2020-21. The CPC had initially denied the exemption without assigning any reasons in the intimation under section 143(1). The NFAC dismissed the appeal on the grounds that a rectification petition under section 154, which was already disposed of, was filed. The Tribunal held that the proceedings before the NFAC and the CPC under sections 143(1) and 154 respectively are independent, and the denial of exemption without reasons was invalid.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137616 (ITAT-PUNE)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 02-04-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 08-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 154; 11; 12A; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.158/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year : 2020-21 Umakant Gajanan Foundation, E 3/5, Shirine Garden, ITI Road, Aundh, Pune- 411007. PAN : AAATU5190M Vs. ITO, Ward-1(1), Exemptions, Pune. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 16.12.2022 for the assessment year 2020-21. 2. Briefly, the facts of the case are that the appellant is a charitable trust registered u/s 12A of the Income Tax Act, 1961 (‘the Act’). The appellant trust had filed the Return of Income for the assessment year 2020-21 claiming exemption u/s 11 of the Act. The said return of income was processed u/s 143(1) by CPC denying the exemption u/s 11 without assigning any reasons whatsoever vide intimation dated 10.12.2021. Against the said Assessee by : Shri Nikhil Pathak Revenue by : Shri Sonal L. Sonkavde Date of hearing : 10.04.2023 Date of pronouncement : 10.04.2023 ITA No.158/PUN/2023 2 intimation, an appeal was filed before the NFAC, who vide impugned order dismissed the appeal on the ground that the rectification petition filed u/s 154 on 28.04.2022 before the CPC was already disposed against appellant trust. 3. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 4. It is submitted before me that the proceedings before the NFAC and the proceedings u/s 154 before the CPC are independent of each other and the denial of exemption u/s 11 without assigning any reasons is invalid in law. 5. On the other hand, ld. Sr. DR placed reliance on the order of the NFAC. 6. I heard the rival submissions and perused the material on record. The solitary issue in the present appeal relates to the denial of exemption under the provisions of section 11 of the Act. The CPC while processing the return of income u/s 143(1) had not assigned any reasons as to why it is denying the exemption u/s 11 of the Act. It is the case of the appellant society that the denial of exemption u/s 11 does not fall under any of the specified categories under the provisions of section 143(1) of the Act. The reasoning of the NFAC that because of the dismissal of 154 petition by the CPC, the appeal cannot be allowed u/s 143(1) is not a valid reason for denying of exemption, as there is no bar that when the appeal is ITA No.158/PUN/2023 3 filed against the intimation issued u/s 143(1), no proceedings u/s 154 can be filed before the CPC as both are separate and distinct proceedings. The NFAC had failed to examine the issue in appeal whether the disallowance made by the CPC in the intimation u/s 143(1), falls under any of the specified categories under the provisions of section 143(1) of the Act. I have carefully gone through the intimation issued and perused the provisions of section 143(1) of the Act. I am of the considered opinion that denial of exemption u/s 11 in the present appeal does not fall under any of the specified categories under the provisions of section 143(1) of the Act and, therefore, I direct the CPC to amend the intimation u/s 154 allowing the exemption u/s 11 of the Act. 7. In the result, the appeal filed by the assessee stands allowed. Order pronounced on this 10 th day of April, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 10 th April, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.