Acharya Dharamchandradeo Medical & Research Trust, Allahabad V. DCIT (CPC), Bangalore, Bangalore

ITA 21/ALLD/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 5502 (ITAT-ALLAHABAD)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 16-11-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Period of limitation
• Section: 12; 11; 80G; 12A; 10B; 143(1); 139(1)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD ‘SMC’ BENCH, ALLAHABAD BEFORE SHRI.VIJAY PAL RAO, JUDICIAL MEMBER ITA No.21/ALLD/2021 Assessment Year: 2017-18 Acharya Dharamchandradeo Medical & Research Trust, Chhatnag Road, Jhunsi Allahabad-211019 PAN-AACTA3794K vs. DCIT (CPC), Bangalore-560500 (Appellant) (Respondent) Appellant by: Mr. Praveen Godbole, CA Respondent by: Mr. A.K. Singh, Sr. DR Date of hearing: 14.07.2022 Date of pronouncement: 20.07.2022 O R D E R VIJAY PAL RAO, JUDICIAL MEMBER: This appeal by the assessee is directed against the order dated 5.11.2021 of CIT(A) (National Faceless Appeal Centre, Delhi) for the assessment year 2017-18. The assessee has raised the following grounds:- “1. That in any view of the matter order passed under section 143 (1} dated 09.03.2019 by which income assessed at Rs. 15,05,629/- is bad both on the facts and in law. 2. That in any view of the matter the learned C.I.T (Appeal) was wrong in passing the order ex-parte without providing reasonable opportunity to the assessee nor assessee was aware about fixation of appeal hence the order passed is not speaking order in the eyes of law. 3. That in any view of the matter the learned CIT (Appeal) was wrong in deciding the appeal one sided without going through the merit of the case and more so when there was board circular where the delay in filing form 10B was to be condoned but still ignoring the fact appeal was decided ex-parte which action is highly unjustified. 4. That in the any view of the matter the said trust is registered under section 1 2A and 80G of the Act which is not in dispute, return along with audit report was filed in time, merely because due to technical reason form 10B was uploaded beyond time therefore benefit of section 11 was denied by DOIT CPC Bangalore which action is highly unjustified. 5. That in the any view of the matter both the two lower authority was wrong in not considering the genuine claim. of the trust which is purely charitable in nature and the ITA No. 21/Alld/ 2021 Acharya Dharamchandradeo Medical & Research Trust 2 activities are being carried out as per rules and bylaws of the trust hence the action of the assessing officer and learned CIT (Appeal) is bad in law. 6. That in the any view of the matter addition/disallowances under different head as made by the assessing officer and confirmed by C.I.T. (Appeal) is highly unjustified. 7. That in any view of the matter the appellant reserves her right to take any fresh ground before hearing of the appeal.” 2. The assessee trust was granted registration under section 12A and 80G of the Income Tax Act. The assessee filed its return of income for the year under consideration on 29.10.2017 declaring nil income after claiming the exemption under section 11 and 12 of the Income Tax Act. The CPC while processing the return of income under section 143(1) has made additions on account of disallowing the claim of exemption under section 11 and 12 due to not filing Form No. 10B alongwith the return of income. The assessee challenged the action of the CPC before the CIT(A). The CIT(A) dismissed the appeal of the assessee while passing the impugned order by recording the fact that several opportunities of hearing were granted to the assessee but there was no response to the notices issued by it. Accordingly, the CIT(A) presumed that the assessee is not interested in pursuing the present appeal and the appeal was disposed of on merits on the basis of the information available on record. 3. Before the Tribunal, the learned AR of the assessee has pointed out that the assessee has filed the Audit Report in Form No. 10B on 7.11.2017 which is within the due date of return for the year under consideration as extended by the CBDT vide press release dated 31.10.2017. He has referred to the press release of CBDT placed at page no. 44 of the paper book and submitted that the assessee has filed the Audit Report in Form No. 10B within the period of limitation for filing the return of income under section 139(1) as extended by the CBDT then the disallowance made by the CPC while processing the return of income is not justified and liable to be deleted. The learned AR has also referred to the decision of CIT(A) in the case of Sadguru Sadafaldeo Social Welfare Trust whereby a disallowance made by the CPC was ITA No. 21/Alld/ 2021 Acharya Dharamchandradeo Medical & Research Trust 3 deleted by considering this fact that Form No. 10B was filed by the said assessee on 7.11.2017 which is within the due date of filing of return of income under section 139(1) as extended by the CBDT. Thus, the learned AR has pleaded that the additions / adjustments made by the CPC may be deleted. 4. On the other hand, learned DR has submitted that though the assessee filed the appeal before the CIT(A) however, despite several notices, there was no response on behalf of the assessee. The assessee has not brought to the notice of the CIT(A) about the fact that the Audit Report in Form No. 10B was filed within the due date of filing of return of income under section 139(1) of the Act. He has relied upon the impugned order of the CIT(A). 5. I have considered the rival submissions as well as relevant material on record. The return of income filed by the assessee was processed under section 143(1) by the CPC on 9.3.2019 and thereby an adjustment of Rs. 15,5,629/- was made by disallowing the claim of exemption under section 11 and 12 of the Income Tax due to non filing of Audit Report in Form No. 10B alongwith the return of income. There is no dispute that the assessee did not file the Audit Report in Form No. 10B alongwith the return of income filed on 29.10.2017. Thereafter the assessee claimed to have file Form No. 10B on 7.11.2017. It is pertinent to note that the CBDT vide press release dated 31.10.2017 has extended the due date of filing the income tax return and Audit Report from 31.10.2017 to 7.11.2017 as under:- “PRESS RELEASE CBDT extends due date for filing Income Tax Return and Tax Audit Reports On consideration of representations from various stakeholders for further extension of ‘due date’, being 30 th September 2017 for those liable to file returns by 30.09.2017 and to facilitate ease of compliance by the taxpayers, CBDT has further extended the ‘due-date’ for filing Income Tax Returns and various reports of audit prescribed under the Income-tax Act, 1961 pertaining to AY 2017-18 from 31 st October, 2017 to 7 th November, 2017 for all such taxpayers.” ITA No. 21/Alld/ 2021 Acharya Dharamchandradeo Medical & Research Trust 4 6. Since, there was no response to the notices issued by the CIT(A) to the assessee therefore, the CIT(A) has confirmed the adjustment / disallowance made by the CPC for want of filing of Form No. 10-B. Accordingly, in view of the facts and circumstances of the case, when the due date of filing of the return of income was extended by the CBDT to 7.11.2017 and assessee has also filed the Audit Report in Form No. 10B on 7.11.2017, then the adjustment made by the CPC on account of disallowing the claim of exemption under section 11 and 12 for want of filing of Form No. 10B is not justified and the same is deleted. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 20.07.2022. Sd/- [VIJAY PAL RAO] JUDICIAL MEMBER DATED:20/07/2022 Sh Copy forwarded to: 1. Appellant – 2. Respondent – 3. CIT(A) , Allahabad 4. CIT 5. DR - By order Sr. P.S.