M/s Rotary Education Society , Mandya V. Income Tax Officer (Exemptions) Ward-1 , Mysore

ITA 2141/BANG/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0297 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 28-12-2020
• Assessment Year: 2016-2017
• Appeal Filed On: 09-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 154; 11; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C, BANGALORE BEFORE SHRI GEORGE GEORGE K, JM & SHRI B.R.BASKARAN, AM ITA NO.2141/BANG/2018 : ASST.YEAR 2016-2017 M/S. ROTARY EDUCATION SOCIETY #1, M.C.ROAD MANDYA 571 401. PAN : AAAAR1699H. V. THE INCOME TAX OFFICER (EXEMPTION) WARD 1 MYSURU. (APPELLANT) (RESPONDENT) APPELLANT BY : SRI.V.SRINIVASAN, ADVOCATE RESPONDENT BY : SMT.R.PREMI, JCIT-DR DATE OF HEARING : 29.12.2020 DATE OF PRONOUNCEMENT : 29.12.2020 O R D E R PER GEORGE GEORGE K, JM : THIS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST CIT(A)S ORDER DATED 31.05.2018. THE RELEVANT ASSESSMENT YEAR IS 2016-2017. 2. THE SOLITARY ISSUE THAT IS RAISED IS WHETHER THE CIT(A) IS JUSTIFIED IN CONFIRMING DENIAL OF EXEMPTION U/S 11(2) OF THE I.T.ACT. 3. THE BRIEF FACTS OF THE CASE ARE AS FOLLOW: THE ASSESSEE IS A SOCIETY REGISTERED UNDER THE KARNATAKA SOCIETIES REGISTRATION ACT. FOR THE ASSESSMENT YEAR 2016-2017, THE RETURN OF INCOME WAS FILED ELECTRONICALLY ON 04.08.2016. THE RETURN WAS PROCESSED BY THE CENTRALIZED PROCESSING CENTRE AND VIDE INTIMATION U/S 143(1) OF THE I.T.ACT, THE EXEMPTION CLAIMED BY THE ASSESSEE U/S 11 WAS DENIED. THE ASSESSEE FILED ITA NO.2141/BANG/2018 M/S.ROTARY EDUCATION SOCIETY 2 AN APPLICATION U/S 154 OF THE I.T.ACT BEFORE THE ASSESSING OFFICER. THE ASSESSING OFFICER VIDE ORDER DATED 19.01.2018 PASSED ORDER U/S 154 OF THE I.T.ACT CONFIRMING DENYING THE EXEMPTION CLAIMED U/S 11 OF THE I.T.ACT. THE SOLE REASON FOR DENYING THE EXEMPTION CLAIMED U/S 11 OF THE I.T.ACT WAS THAT THE RETURN OF INCOME FILED BY THE ASSESSEE WAS NOT ACCOMPANIED BY THE AUDIT REPORT IN FORM NO.10B AS PRESCRIBED UNDER RULE 17B OF THE I.T.RULES, 1962. 4. AGGRIEVED BY THE ORDER OF THE ASSESSING OFFICER IN REJECTING THE APPLICATION U/S 154 OF THE I.T.ACT, THE ASSESSEE PREFERRED AN APPEAL TO THE FIRST APPELLATE AUTHORITY. THE CIT(A) CONFIRMED THE VIEW TAKEN BY THE ASSESSING OFFICER. THE RELEVANT FINDING OF THE CIT(A) READS AS FOLLOW:- 3 BUT, DURING THE COURSE OF THE APPELLATE PROCEEDINGS, THE APPELLANT DID NOT FURNISH ANY CREDIBLE AND VERIFIABLE DOCUMENTARY EVIDENCE TO PROVE THAT THE APPELLANT WAS PREVENTED BY ANY REASONABLE CAUSE FROM ELECTRONICALLY FILING THE AUDIT REPORT IN FORM 10B, AS PRESCRIBED VIDE RULE 17B OF THE INCOME-TAX RULES, 1962 BEFORE THE ASSESSING OFFICER, EITHER ON THE DATE OF FILING OF THE RETURN OF INCOME FOR THE A.Y.2016-17 OR WITHIN THE STATUTORY DUE DATE FOR FILING THE RETURN OF INCOME FOR THE A.Y.2016-17. THE REASONING THE APPELLANT CONTAINED IN THE SUBMISSION : SINCE FORM 10 HAD BEEN FILED MANUALLY, IT WAS A SUPERFLUOUS EXERCISE TO FILE FORM NO.10 AGAIN ALONG WITH THE RETURN WHEN THE SAME WAS ALREADY FILED BEFORE FILING THE RETURN DOES NOT REFLECT THE CORRECT INTERPRETATION OF LAW AND COULD AT BEST BE TAKEN AS THE SUBSEQUENT RATIONALIZATION OF THE APPELLANTS DEFAULT IN COMPLYING WITH THE PROVISIONS OF LAW IN LETTER AND SPIRIT. THEREFORE, IT IS HELD THAT THE APPELLANT IS NOT ELIGIBLE FOR THE EXEMPTION CLAIMED U/S 11 OF THE ACT FOR THE A.Y.2016-17 AND ACCORDINGLY, THE 2 ND GROUND OF APPEAL IS DISMISSED, AS PER LAW. 5. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE COMMISSIONER OF INCOME- ITA NO.2141/BANG/2018 M/S.ROTARY EDUCATION SOCIETY 3 TAX (EXEMPTION) VIDE ORDER DATED 22.12.2020 HAD CONDONED THE DELAY IN FILING FORM NO.10B FOR THE ASSESSMENT YEAR 2016- 2017. THE ORDER OF THE CIT (EXEMPTION) DATED 22.12.2020 IS PLACED ON RECORD. 6. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE MATTER MAY BE RESTORED TO THE A.O. IN VIEW OF THE SUBSEQUENT DEVELOPMENT. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE SOLE REASON FOR DENYING THE EXEMPTION U/S 11 OF THE I.T.ACT WAS THAT AUDIT REPORT IN FORM NO.10B WAS NOT FILED ALONG WITH THE RETURN OF INCOME. NOW THE CIT (EXEMPTION) HAD CONDONED THE DELAY OF FILING THE AUDIT REPORT IN FORM NO.10B FOR THE RELEVANT ASSESSMENT YEAR. IN VIEW OF THE SAME, WE RESTORE THE ISSUE TO THE A.O. IT IS ORDERED ACCORDINGLY. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 29 TH DAY OF DECEMBER, 2020 . SD/- SD/- ( B.R.BASKARAN ) ( GEORGE GEORGE K ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE; DATED : 29 TH DECEMBER, 2020. DEVADAS G* ITA NO.2141/BANG/2018 M/S.ROTARY EDUCATION SOCIETY 4 COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(A), MYSURU. 4. THE DIT(EXEMPTION), BENGALURU. 5. THE DR, ITAT, BENGALURU. 6. GUARD FILE. ASST.REGISTRAR/ITAT, BANGALORE