CHAITANYA SRAVANTHI, VISAKHAPATNAM V. INCOME TAX OFFICER(EXEMPTION WARD), VISAKHAPATNAM

ITA 17/VIZ/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3392 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 03-03-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 18-01-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Keywords: Rectification of order; Principle of natural justice
• Section: 154; 11; 234B; 12A; 143(1)

Judgement Text

आयकर अपीलीयअधिकरण, विशाखापटणम SMC पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्ि ू रु आर एल रेड्डी, न्याययक सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER (Through Hybrid Hearing) आयकर अपील सं./ I.T.A. No. 17/Viz/2024 (निर्धारण वर्ा / Assessment Year : 2021-22) Chaitanya Sravanthi, Visakhapatnam. PAN: AACTS 3227 K Vs. The Income Tax Officer, Exemption Ward, Visakhapatnam. (अपीलधर्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधर्थी की ओर से/ Appellant by : Sri GVN Hari, AR प्रत्यधर्थी की ओर से / Respondent by : Dr. Aparna Villuri, Sr. AR स ु िवधई की तधरीख / Date of Hearing : 04/03/2024 घोर्णध की तधरीख/Date of Pronouncement : 14/03/2024 O R D E R PER DUVVURU RL REDDY, Judicial Member : This appeal filed by the assessee is against the order of the Ld. CIT(A)-9, Mumbai in DIN & Order No. ITBA/APL/S/250/2023- 24/1059090534(1), dated 21/11/2023 arising out of the order passed U/s. 143(1) of the Income Tax Act, 1961 for the AY 2021- 22. 2 2. Briefly stated relevant facts of the case are that the assessee is stated to be a Trust being registered U/s. 12A of the Act, filed its return of income for the AY 2021-22 on 4/1/2022 admitting NIL income after claiming exemption U/s. 11 of the Act. Thereafter, the assessee’s return of income was processed by the CPC and Intimation U/s. 143(1) of the Act was issued on 23/08/2021 wherein the Ld. AO disallowed the exemption U/s. 11 of the Act and the total income of the assessee was determined at Rs. 27,86,845/- thereby raising a demand of Rs. 8,23,200/- which includes interest U/s. 234B and 234C of the Act. While disallowing the exemption claimed by the assessee, the Ld. AO observed that while filing the return of income the assessee did not provide the details of new registration / approval obtained U/s. 12AB of the Act. Thereafter, the assessee filed rectification petition and the same was dispose of by the Ld. AO by passing order U/s. 154 of the Act wherein the Ld. AO sustained the disallowance made in the Intimation U/s. 143(1) of the Act and determined the same total income at Rs. 27,86,845/-. Aggrieved by the Intimation passed U/s. 143(1) as well as the rectification order of the Ld. AO passed U/s. 154 of the Act, the assessee preferred an appeal before the Ld. CIT(A)-9, Mumabi with a delay of 99 days. On appeal, the Ld. Addl/JCIT (A), Mumbai dismissed the appeal filed by the assessee. 3 On being aggrieved, the assessee is in appeal before the Tribunal by raising the following grounds of appeal: “1. The order of the Ld. CIT(A) is con tr ary to the f acts and al so the law applicable to the f acts of th e case. 2. The Ld. C IT(A) is not ju stif ied in dismissing th e appeal filed ag ain st the In timatio n dated 23/08/2022 U/s. 143(1 ) of the Ac t as not main tain able on the groun d th at th e appell an t also filed appeal ag ainst the rectif ication order passed on 5/12/2022 U/s. 154 of the Ac t. 3. The Ld. C IT(A) ough t to h ave held th at th e disallowance of exemption of Rs. 27 ,8 6,845/- cl aimed by appell an t U/s. 11 of the Act is ou tside the scope of adju stmen ts th at can be made U/s. 143(1) of the Ac t. 4. With ou t preju dice to the above, the Ld. CIT(A) ough t to h ave direc ted the Assessing Officer to allo w th e exemp tion of Rs. 27,86,845/- cl aimed by th e appell an t U/s. 11 of the Ac t. 5. With ou t prejudice to Groun d No.3 an d Ground No.4, th e Ld. C IT (A) ough t to h ave direc ted the Assessing Officer to allow the expen di ture of Rs. 27,86,845/- ac tu ally incu rred by the appell an t. 6. Any other ground may be urged at the time of hearing.” 3. At the outset, the Ld. Authorized Representative [AR] reiterated the submissions made before the Ld. Revenue Authorities. The Ld. AR further drawn my attention to page No.51 of the paper book filed before the Tribunal and submitted that the assessee got new approval of Registration in Form No.10AC of the Act, dated 8/2/2022 and therefore prayed to remit the matter back to the file of the Ld. AO to consider the registration and to allow the claim made by the assessee in its return of income. 4 4. On the other hand, the Ld. Departmental Representative [DR] strongly relied on the orders of the Ld. Revenue Authorities and supported the decision taken by them. 5. I have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities. It is an undisputed fact that the assessee has claimed exemption U/s. 11 of the Act being a Trust registered U/s. 12A of the Act. But while filing the return of income it was observed by the Ld. AO / CPC that the assessee has not filed the details of new registration / approval obtained U/s. 12AB of the Act. On appeal, the Ld. CIT(A) dismissed the appeal of the assessee as inadmissible. Now, before the Tribunal, the assessee has filed a copy evidencing the new approval for registration U/s. 12AB of the Act vide page No. 51 of the paper book. Therefore, considering the facts and circumstances of the case as well as considering the prayer of the Ld. AR, I hereby remit the matter back to the file of the Ld. AO to examine the new approval filed before the Tribunal (Form 10AC, Page 51 of the paper book) and decide the issue afresh after affording a reasonable opportunity of being heard to the assessee as per the principles of natural justice and in accordance with law. 5 Accordingly, grounds raised by the assesse are allowed for statistical purposes. 6. In the result, appeal of the assessee is allowed for statistical purposes as indicated herein above. Pronounced in the open Court on 14 th March, 2024. Sd/- (द ु व्ि ू रु आर.एल रेड्डी) (DUVVURU RL REDDY) न्याययकसदस्य/JUDICIAL MEMBER Dated :14/03/2024 OKK - SPS आदेश की प्रतिलिपि अग्रेपिि/Copy of the order forwarded to:- 1. निर्धाररती/ The Assessee – Chaitanya Sravanthi, D.No. 4-57-4/5, LIG 150, Upstairs Baba Bazar, Nandhigudi Centre, Lawsons Bay Colony, Visakhapatnam, Andhra Pradesh – 530017. 2. रधजस्व/The Revenue – Income Tax Office, Infinity Tower, Shankaramatham Road, Santhipuram, Visakhapatnam, Andhra Pradesh – 530016. 3. The Principal Commissioner of Income Tax, 4.आयकर आय ु क्त (अपील)/ The Commissioner of Income Tax (Appeals), 5. ववभधगीय प्रनतनिधर्, आयकर अपीलीय अधर्करण, ववशधखधपटणम/ DR, ITAT, Visakhapatnam 6.गधर्ा फ़धईल / Guard file आदेशधि ु सधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam