Sarjan Foundation, Ahmedabad V. The DCIT CPC, Bengluru

ITA 1791/AHD/2019

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 9987 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 18-10-2022
• Assessment Year: misc
• Appeal Filed On: 02-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; Principle of natural justice
• Section: 154; 143(1); 139(1)

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ, अहमदाबाद अहमदाबादअहमदाबाद अहमदाबाद । ।। । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.1791/Ahd/2019 Assessment Year : 2015-16 Sarjan Foundation 4 th Floor, Arya Apartment B/h. LD Engineering College Hostel Polytechnic Ahmedabad – 380 015 Vs The DCIT (CPC) Bengaluru PAN: AAATS 6262 L / (Appellant) / (Respondent) Assessee by : Shri S.N. Divatia, Adv. Revenue by : Shri Ravindra Bokde, CIT-DR /Date of Hearing : 19 /10/2022 /Date of Pronouncement: 21/10/2022 आदेश/O R D E R This appeal is filed by the Assessee against the order dated 04/10/2019 passed by the Commissioner of Income-tax (Appeals)-9, Ahmedabad [“CIT(A)” in short] for Assessment Year 2015-16. 2. Grounds of appeal are as under: 1.1. The order passed u/s.250 on 04.10.2018 for AY 2015-16 by CIT(A)- 9, Abad upholding the rejection of rectification application u/s.154 and the adjustment made by way of disallowance of accumulation of income of Rs.50 lakhs u/s.11(2) by CPC, Bengaluru is wholly illegal, unlawful and against the principles of natural justice. ITA No. 1791/Ahd/2019 Sarjan Foundation vs. DCIT(CPC) Bengaluru AY 2015-16 2 1.2. The Ld.CIT(A) has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced by the appellant with regard to the impugned addition of Rs.50 lakhs. 2.1. The Ld.CIT(A) has grievously erred in law and on facts in confirming the disallowance of accumulation of income of Rs.50 lakhs u/s.11(2) by CPC, Bengaluru. 2.2. That in the facts and circumstances of the case as well as in law, the Ld.CIT(A) ought not to have upheld the disallowance of accumulation of income of Rs.50 lakhs u/s.11(2) by CPC, Bengaluru. 3.1. The Ld.CIT(A) ought to have appreciated that the amendment relating to e-filing of Form no.10B was not applicable to the year under appeal but from A.Y. 2016-17 so that there was no violation of section 11(2). 3.2. That in the facts and circumstances of the case as well as in law, the Ld.CIT(A) ought not to have held that form no.10B was to be filed electronically before the filing of due date of return and therefore form no.10 filed in physical form on 21/5/2018 ought to have been treated due compliance and the accumulation of income of Rs.50 lakhs u/s.11(2) ought to have been allowed in computing total income. Thus, there was a mistake of law apparent on record. 3. The assessee is public charitable trust and registered under the Bombay Public Trust Act as well as Income Tax Act. It had filed its return of income for A.Y. 2015-16 on 30.09.2015 declaring total income at Rs. Nil after claiming accumulation of income of Rs. 50 lakhs u/s 11(2). It was processed u/s 143(1) by CPC Bengaluru vide intimation dated 10.11.2017 wherein the claim of accumulation of income of Rs. 50 Lakhs was rejected and demand of Rs. 10,84,600 was raised. The assessee filed online application u/s 154 on 30.11.2017 with CPC which was disposed of by order dated 06.05.2018 wherein the claim was rejected on the ground that the assessee did not file ITA No. 1791/Ahd/2019 Sarjan Foundation vs. DCIT(CPC) Bengaluru AY 2015-16 3 Form-10 within due date of filing return u/s 139(1) as per provision of 12(2) r.w.r 17. 4. Being aggrieved by the said rectification order dated 06.05.2018, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the delay in e-filing of Form 10 had occasioned for sufficient cause in as much as it had filed through oversight and ignorance Form 10 in physical form on 21.05.2018 which was later on e- filed. The amendment requiring e-filing of Form 10 was made effective from 01.04.2016 relevant to A.Y. 2016-17 and hence, not applicable to the year under appeal. The assessee also relied upon CBDT circular no. 273 dated 03.06.1980. However, the CIT(A) rejected all the contentions holding that there was no mistake in the initiation processed by CPC and the delay in filing Form – 10 could be raised before the concern CIT(Exemption). The Ld. AR further submitted that vide order dated 02.09.2022, the CIT(Exemption) has condone the delay in filing Form 10 for A.Y. 2015-16. The Ld. AR prayed that since the delay is condoned by the CIT(Exemptions), the Assessing Officer may be directed to grant the claim of the assessee. 6. The Ld. DR relied upon the rectification order and the order of the CIT(A). 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the delay in e-filing of Form 10 has now been condoned by the CIT (Exemption) vide order dated ITA No. 1791/Ahd/2019 Sarjan Foundation vs. DCIT(CPC) Bengaluru AY 2015-16 4 02.09.2022, hence, it is appropriate to direct the Assessing Officer to look into the claim of the assessee as per Section 11(2) after verifying the same on merit and as per law. The appeal of the assessee is partly allowed. 8. In result, appeal of the assessee is partly allowed. Order pronounced in the Court on 21 st October, 2022 at Ahmedabad. Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad, Dated 21/10/2022 . ी. य , . . ./T.C. NAIR, Sr. PS ! "# /Copy of the Order forwarded to : 1. "!ी $% / The Appellant 2. &य$% / The Respondent. 3. '(')* य य + / Concerned CIT 4. य य + )"!ी (/ The CIT(A)-9, Ahmedabad 5. . /ीय )* , य "!ी य ")* , ज /DR,ITAT, Ahmedabad, 6. / 12 3 /Guard file. / BY ORDER, &य ! //True Copy// ह य !'जी (Asstt. Registrar) य "!ी य ")* , ITAT, Ahmedabad 1. Date of dictation (word processed by Hon’ble JM in her computer) : 19.10.22 2. Date on which the typed draft is placed before the Dictating Member. : 20.10.22 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 21.10.22 7. Date on which the file goes to the Bench Clerk. : 21.10.22 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order :