IMPROVEMENT TRUST , KAPURTHALA V. INCOME TAX OFFICER ( EXEMPTIONS) WARD , JALANDHAR

ITA 201/ASR/2022

AI Insights

The case involves the Improvement Trust, Kapurthala, which appealed against the order of the CIT(A) National Faceless Appeal Centre (NFAC), Delhi, which had disallowed exemptions under section 11 of the Income Tax Act for the assessment year 2019-20. The primary contention was the failure of the CIT(A) to consider the exemptions previously allowed by the ITAT and the CIT(A), Jalandhar, in the appellant's own case for the assessment year 2018-19. The appellant argued that the CIT(A) NFAC had ignored these precedents and the certificate of registration under section 12A, which justified the exemptions under section 11. The respondent did not object to the appeal, acknowledging a possible technical error in the return processing by CPC under section 143(1).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114403 (ITAT-AMRITSAR)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 19-02-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 16-10-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 11; 11A; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR (VIRTUAL COURT) BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No. 201/Asr/2022 Assessment Year: 2019-20 Improvement Trust, Kapurthala, Railway Road, Kapurthala, Punjab-144601 [PAN: AAALK 0503E] (Appellant) V. Income Tax Officer (Exemptions), Ward Jalandhar (Respondent) Appellant by: Sh. Y. K. Sud, CA Respondent by: Sh. Ravinder Mittal, Sr. DR Date of Hearing: 20.02.2023 Date of Pronouncement: 23.02.2023 ORDER Per Dr. M. L. Meena, AM: The present appeal has been filed by the assessee against the order of the Ld. CIT(A) National Faceless Appeal Centre (NFAC), Delhi dated 05.08.2022, in respect of AY 2019-20. ITA No. 201/Asr/2022 Improvement Trust v. ITO 2 2. At the outset, the ld. counsel for the assessee submitted that the ld. CIT(A) NFAC was not justified in disallowing the exemptions u/s 11 claimed by the appellant assessee on the pretax that certificate of registration u/s 11A has not been filed before him. The ld. AR argued that he has completely ignored the submission of the assessee that exemptions u/s 11 has been allowed by the ITAT in assessee’s own case, therefore, as a binding precedent, the ld. CIT(A) NFAC as well as the AO ought to have allowed the exemptions u/s 11; that he has failed to appreciate that ld. CIT(A), Jalandhar in assessee’s own case had allowed the exemption u/s 11 in the previous assessment year, i.e., assessment year 2018-19. Thus, the order of the ld. CIT(A) NFAC and the AO are against the law. He pleaded that since, the appellant assessee have been registered u/s 12A of the Act, the exemption claimed u/s 11 of the Act by the appellant may be allowed. The ld. DR has no objection to the request of the assessee, admitting the fact that there may be some technical error in processing the return by CPC u/s 143(1). 3. Having heard both the sides and perusal of the fact on record. It is observed that there was a technical error by the system while processing the return. It is evident from the registration certificate u/s 12A of the Act filed on the record by the appellant, that exemption claimed u/s 11A of the ITA No. 201/Asr/2022 Improvement Trust v. ITO 3 Act by the appellant is allowable as per law. Accordingly, the AO is directed to allow the assessee trust exemption u/s 11 as claimed by the appellant. 4. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 23.02.2023 Sd/- Sd/- (Anikesh Banerjee) (Dr. M. L. Meena) Judicial Member Accountant Member *GP/Sr./P.S.* Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By Order