Shri Nathji Charitable Trust, Kolkata V. DCIT, CPC, Bangalore

ITA 271/KOL/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 5289 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 16-05-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Set aside
• Section: 11; 12A; 143(1)

Judgement Text

आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘ए’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA Įी संजय गग[, ÛयाǓयक सदèय एवं डॉÈटर मनीष बोरड, लेखा सदèय के सम¢ Before Shri Sanjay Garg, Judicial Member and Dr. Manish Borad, Accountant Member I.T.A No.271/Kol/2022 Assessment year: 2014-15 Shri Nathji Charitable Trust........................................................................Appellant M K House, 2/2, Justice Dwarkanath Road, Kolkata-700020. [PAN: AAJTS3523K] vs. DCIT, CPC, Bangalore.........................................................................Respondent Appearances by: Shri Miraj D. Shah, AR, appeared on behalf of the appellant. Shri Parth Pratim barman, Addl. CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : September 08, 2022 Date of pronouncing the order : September 20, 2022 आदेश / ORDER संजय गग[, ÛयाǓयक सदèय ɮवारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 16.03.2022 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’]. The assessee is a charitable trust registered u/s 12A of the Income Tax Act (hereinafter referred to as the ‘Act’) and is entitled to the exemption u/s 11 of the Act. 2. The sole issue raised, in this appeal, by the assessee-appellant is that the ACIT/CPC while processing the return of the assessee u/s 143(1) of the Act due to some fault in the software of the CPC, has treated the claim of application of income on charitable activities, income accumulated or set apart for application of charitable activities, and the amount accumulated for set apart for specified purpose etc. has been at zero by the software/computer system of CPC as against the claim of the assessee of application/accumulation of total amount of Rs.38,79,660/-. The ld. Counsel for the assessee has further invited our attention to paper book page 39-40 to submit that even in respect of assessment year 2013-14 also, the said application/accumulation of the income I.T.A No.271/Kol/2022 Assessment year: 2014-15 Shri Nathji Charitable Trust 2 was disallowed by the computer system of CPC. Under similar circumstances, in an appeal filed by the assessee, the ld. CIT(A) vide order dated 22.05.2018 passed in ITA No.52/CIT(A)-25/Kol/2018-19 has directed the Assessing Officer to verify the aforesaid facts and if on verification, it is found that the application/accumulation of income claimed to have made by the assessee-trust has been rightly utilized/accumulated as per the relevant provisions of the Act, then the claim of the assessee for application/setting apart/deemed application/accumulation etc. may be allowed. The fact being similar in this appeal also, the impugned order of the CIT(A) is set aside and the matter is restored to the file of the Assessing Officer with similar directions to examine the claim of the assessee of application of income for charitable purposes/deemed application/accumulated or set apart as per the provisions of the Act and if found correct, the Assessing Officer to allow the same. 3. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Kolkata, the 20 th September, 2022. Sd/- Sd/- [डॉÈटर मनीष बोरड /Dr. Manish Borad] [संजय गग[ /Sanjay Garg] लेखा सदèय /Accountant Member ÛयाǓयक सदèय /Judicial Member Dated: 20.09.2022. RS Copy of the order forwarded to: 1. Shri Nathji Charitable Trust 2. DCIT, CPC, Bangalore 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches