EDUCO, Mumbai V. Exemption Ward (1)(2), , Mumbai

ITA 2857/MUM/2024

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 5548 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: Mumbai
• Next Hearing Date: 31-07-2024
• Assessment Year: misc
• Appeal Filed On: 17-05-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SRINIVASAN
• Keywords: Charitable institution; Condonation of delay
• Section: 11; 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H (SMC)” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI SUNIL KUMAR SINGH (JUDICIAL MEMBER) ITA No. 2857/MUM/2024 Assessment Year: 2017-18 EDUCO 25A, Belvedere Court, Sane Guruji Marg, Mahalaxmi, Mumbai-400011. Vs. NFAC Exem. Ward 1(2), Piramal Chamber Lalbaug, Parel, Mumbai-400001. PAN NO. AAATE 3280 G Appellant Respondent Assessee by : Mr. Srinivasan Revenue by : Mr. Asif Karmali, Sr. DR Date of Hearing : 01/08/2024 Date of pronouncement : 19/08/2024 ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is directed against order dated 21.03.2024 passed by the Ld. Commissioner of Income-tax (Appeals)- National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2017-18, raising following ground: 1. The Ld. NFAC Officer erred in confirming addition of donation of INR 33 lakh received on 31 March 2017 even though the revised/corrected Form 10 accumulating the amount of INR 35 Lakh was duly submitted to the Ld. CIT along with request for condonation of delay which is still pending. 2. Briefly stated facts of the case are that the assessee registered with the Director of Income 12A of the Income-tax Act, 1961 (in short ‘the Act’) vide Registration No. 42655 and u/s 80G of the Act. The Trust is also registered with the Charity Commissioner, Mumbai. The main object of the Tru to advance education building and funding and or managing of educational institutions and/or facilities in India and to promote and/or establish and/or conduct higher secondary and university education in differ faculties. The assessee 29.10.2017 declaring total income of Rs.2,17,030/ income filed by the assessee was selected for scrutiny and statutory notices under the Act were issued and complied w Officer noticed that the assessee received an amount of Rs.33 lakhs during the year as donation which was not considered as income of the Trust but instead balance sheet as unutilized grant. T as per the provisions of section 2(24) of the Act the grants received by charitable trust are in the nature of Ld. Assessing Officer if the deemed application as ITA No. 2857/MUM/2024 though the revised/corrected Form 10 accumulating the amount of INR 35 Lakh was duly submitted to the Ld. CIT along with request for condonation of delay which is still pending. Briefly stated facts of the case are that the assessee with the Director of Income-tax (Exemption), Mumbai u/s tax Act, 1961 (in short ‘the Act’) vide Registration No. 42655 and u/s 80G of the Act. The Trust is also registered with the Charity Commissioner, Mumbai. The main object of the Tru to advance education to the children in improvised areas by building and funding and or managing of educational institutions and/or facilities in India and to promote and/or establish and/or conduct higher secondary and university education in differ faculties. The assessee-Trust filed its original return of income on 29.10.2017 declaring total income of Rs.2,17,030/- income filed by the assessee was selected for scrutiny and statutory notices under the Act were issued and complied with. The Assessing Officer noticed that the assessee received an amount of Rs.33 lakhs during the year as donation which was not considered as income of instead , the same was taken directly to the audited balance sheet as unutilized grant. The Assessing Officer noted that as per the provisions of section 2(24) of the Act the grants received are in the nature of its income. According to the Ld. Assessing Officer if the said donation was to be taken as deemed application as per Explanation-2 to section 11(1) of the Act, EDUCO 2 ITA No. 2857/MUM/2024 though the revised/corrected Form 10 accumulating the amount of INR 35 Lakh was duly submitted to the Ld. CIT along with request for condonation of delay which is Briefly stated facts of the case are that the assessee-trust is tax (Exemption), Mumbai u/s tax Act, 1961 (in short ‘the Act’) vide Registration No. 42655 and u/s 80G of the Act. The Trust is also registered with the Charity Commissioner, Mumbai. The main object of the Trust is the children in improvised areas by building and funding and or managing of educational institutions and/or facilities in India and to promote and/or establish and/or conduct higher secondary and university education in different Trust filed its original return of income on -. The return of income filed by the assessee was selected for scrutiny and statutory ith. The Assessing Officer noticed that the assessee received an amount of Rs.33 lakhs during the year as donation which was not considered as income of the same was taken directly to the audited he Assessing Officer noted that as per the provisions of section 2(24) of the Act the grants received its income. According to the said donation was to be taken as 2 to section 11(1) of the Act, then the assessee was required to file prescribed form accumulation of income the prescribed Form No. 10 income u/s 11(2) of the AO held the amount of Rs.33 lakhs received by the Trust as income of the assessee. 3. Before the Ld. CIT(A), the assessee sought adjournment various notices issued. Therefore, the Ld. CIT(A) dismissed the appeal of the assessee for default on the part of the assessee without deciding the issue on merit. 4. Before us, the Ld. counsel for the assessee submitted that for delay in filing the Form No. 10 before the Ld. Commissioner of Income ‘the ld CIT(E)’] under issued by the Central Board of Direct Taxes (CBDT) CIT(E) has condoned the said delay in filing the form no 10 vide his order dated 26/06/2024 assessee has filed a copy of the filing the Form No. 10 by the assessee. We are of the opinion that once, the Ld. CIT(E) has condoned the delay 10, the Assessing Officer has to take into account the Form No. 10 filed by the assessee and consider exemption u/s 11 of the Act in accordance with law. ITA No. 2857/MUM/2024 the assessee was required to file prescribed form accumulation of income mandatorily. However, assessee has filed Form No. 10 for the purpose of accumulation of income u/s 11(2) of the Act only on 31.10.2017. Accordingly, the amount of Rs.33 lakhs received by the Trust as income Before the Ld. CIT(A), the assessee sought adjournment various notices issued. Therefore, the Ld. CIT(A) dismissed the ppeal of the assessee for default on the part of the assessee without deciding the issue on merit. Before us, the Ld. counsel for the assessee submitted that for delay in filing the Form No. 10, the assessee filed ommissioner of Income-tax(Exemption under relevant circular No. 3/2020 dated 03.01.2020 issued by the Central Board of Direct Taxes (CBDT) CIT(E) has condoned the said delay in filing the form no 10 vide his ed 26/06/2024. Before us, the Ld. counsel for the assessee has filed a copy of the said order condoning the delay in filing the Form No. 10 by the assessee. We are of the opinion that once, the Ld. CIT(E) has condoned the delay in filing the form no. he Assessing Officer has to take into account the Form No. 10 d by the assessee and consider the claim of the assessee for exemption u/s 11 of the Act in accordance with law. EDUCO 3 ITA No. 2857/MUM/2024 the assessee was required to file prescribed form for mandatorily. However, assessee has filed for the purpose of accumulation of only on 31.10.2017. Accordingly, The the amount of Rs.33 lakhs received by the Trust as income Before the Ld. CIT(A), the assessee sought adjournment for the various notices issued. Therefore, the Ld. CIT(A) dismissed the ppeal of the assessee for default on the part of the assessee Before us, the Ld. counsel for the assessee submitted that for d an application xemption)[ in short No. 3/2020 dated 03.01.2020 issued by the Central Board of Direct Taxes (CBDT) and the ld CIT(E) has condoned the said delay in filing the form no 10 vide his . Before us, the Ld. counsel for the order condoning the delay in filing the Form No. 10 by the assessee. We are of the opinion that in filing the form no. he Assessing Officer has to take into account the Form No. 10 the claim of the assessee for exemption u/s 11 of the Act in accordance with law. We accordingly restore the issue in dispute to the file of the assessing Offi deciding in accordance with law. assessee is accordingly allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on Sd/ (SUNIL KUMAR SINGH JUDICIAL MEMBER Mumbai; Dated: 19/08/2024 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// ITA No. 2857/MUM/2024 restore the issue in dispute to the file of the assessing Offi deciding in accordance with law. The sole ground raised by the assessee is accordingly allowed for statistical purposes. In the result, the appeal of the assessee is allowed for statistical purposes. onounced in the open Court on 19/08/2024. Sd/- (SUNIL KUMAR SINGH) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai EDUCO 4 ITA No. 2857/MUM/2024 restore the issue in dispute to the file of the assessing Officer for The sole ground raised by the assessee is accordingly allowed for statistical purposes. In the result, the appeal of the assessee is allowed for /08/2024. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai