HOINA HOMES OF THE INDIAN NATION, VIZAINAGARAM V. INCOME TAX OFFICER(EXEMPTION WARD), VISAKHAPATNAM

ITA 313/VIZ/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8191 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-03-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 25-12-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Keywords: Opportunity of being heard; Set aside
• Section: 154; 11; 12A; 143(1)

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणम “SMC” पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM “SMC” BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER आयकर अपील सं./I.T.A.No.313/Viz/2023 (ननधधारण वर्ा / Assessment Year : 2021-22) Hoina Homes of the Indian Nation The Hoina Campus Kotha Sunkarapalem Vizianagaram [PAN : AAATH3676B] Vs. Income Tax Officer (Exemption Ward) Visakhapatnam (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri G.V.N.Hari, AR प्रत्यधथी की ओर से / Respondent by : Dr.Aparna Villuri, DR सुनवधई की तधरीख / Date of Hearing : 19.03.2024 घोर्णध की तधरीख/Date of Pronouncement : 21.03.2024 आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : This appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No. ITBA/NFAC/S/250/2023-24/1057494316(1) dated 30.10.2023, arising out of order passed u/s 154 of the Income Tax Act, 1961 (in short ‘Act’) dated 02.02.2023 for the Assessment Year (A.Y.) 2021-22. 2 I.T.A. No.313/Viz/2023, A.Y.2021-22 Hoina Homes of the Indian Nation,Vizianagaram 3. Brief facts of the case are that the assessee society filed it’s return of income voluntarily, admitting ‘nil’ income for the A.Y.2021-22 by claiming exemption u/s 11 of the Act. The return was processed by the Central Processing Center (CPC) u/s 143(1) of the Act and the exemption claimed u/s 11 of the Act was not allowed by the Ld.CPC and has been brought to tax, resulting in a demand of Rs.5,96,280/-. 4. On being aggrieved, the assessee society preferred an appeal before the CIT(A) and the Ld.CIT(A) upheld the disallowance made by the Ld.CPC and dismissed the appeal of the assessee. 5. On being aggrieved, the assessee preferred an appeal before the Tribunal by raising the following grounds of appeal : 1. The order of the learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Appeals) ought to have held that the addition of Rs.23,95,154 made towards disallowance of exemption claimed u/s 11 of the Act is outside the scope of adjustments that can be made in the intimation u/s 143(1) of the Act and hence the assessing officer is not justified in rejecting the petition for rectification filed u/s 154 of the Act. 3. Without prejudice to the above, the learned Commissioner of Income Tax (Appeals) ought to have directed the assessing officer to allow the exemption of Rs.23,95,154 claimed by the appellant u/s 11 of the Act. 3 I.T.A. No.313/Viz/2023, A.Y.2021-22 Hoina Homes of the Indian Nation,Vizianagaram 4. Any other ground that may be urged at the time of appeal hearing. 6. The only contention of the Ld.AR is that the assessee is a society registered u/s 12A of the Act and it has rightly claimed exemption of it’s accumulated income of Rs.23,95,154/- u/s 11 of the Act by duly filing Form 9A as per the IT Rules. The adjustment made in the intimation dated 02.02.2023 issued u/s 143(1) of the Act by denying exemption of accumulated income of Rs.23,95,154/- is not at all warranted and in fact such adjustment is not within the purview of the said section. The Ld.AR further submitted that the Ld.CIT(A) ought to have directed the AO to allow exemption of Rs.23,95,154 claimed by the assessee u/s 11 of the Act. He further submitted that the Ld.CIT(A) has not considered the documents and other evidences filed by the assessee and passed order. The Ld.AR filed paper book and submitted that since the assessee society has rightly claimed exemption u/s 11 of the Act by duly filing Form No.9A as per IT Rules, he pleaded to set aside the orders passed by the revenue authorities and afford an opportunity of being heard before the Ld.CIT(A) to substantiate it’s claim with relevant material evidences, in the interest of justice. 4 I.T.A. No.313/Viz/2023, A.Y.2021-22 Hoina Homes of the Indian Nation,Vizianagaram 6. Per contra, the Ld.DR relied on the order of the Ld.CIT(A) and submitted that the assessee has made an incorrect claim by filing Form No.10 beyond the due date. Hence, the Ld.CIT(A) is justified in upholding the action of the Ld.CPC by dismissing the appeal by passing detailed order. She pleaded to uphold the order passed by the Ld.CIT(A) and dismiss the appeal of the assessee. 7. I have heard both the parties and perused the material placed on record. It is an undisputed fact that the assessee is a society, registered u/s 12A of the Act is eligible to claim exemption u/s 11 of the Act. The Ld.AR pleaded before me that the adjustment made in the intimation by denying exemption of accumulated income of Rs.23,95,154/- is not at all warranted and such adjustment is not within the purview of the said section. The Ld.AR filed paper book before me and submitted that the assessee has all material evidences in support of it’s claim. He pleaded for an opportunity of being heard to substantiate it’s claim before the Ld.CIT(A). In view of the foregoing facts and circumstances of the case and keeping in view the principles of natural justice, I am inclined to set aside the order passed by the Ld.CIT(A) and remit the matter back to the file of the Ld.CIT(A) to afford an opportunity of being heard to the assessee before the Ld.CIT(A). The assessee is also directed to adhere to 5 I.T.A. No.313/Viz/2023, A.Y.2021-22 Hoina Homes of the Indian Nation,Vizianagaram the notices issued by the department and cooperate with the proceedings of the revenue authorities. Accordingly, the grounds raised by the assessee are allowed for statistical purpose. 8. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 21 st March, 2024. Sd/- (द ु व्वूरु आर.एल रेड्डी) (DUVVURU RL REDDY) न्याधयक सदस्य/JUDICIAL MEMBER Dated :21.03.2024 L.Rama, SPS आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee– M/s Hoina Homes of the Indian Nation, The Hoina Campus, Kotha Sunkarapalem, Vizianagaram 2. रधजस्व/The Revenue – The Income Tax Officer (Exemption Ward, Income Tax Office, Infinity Tower, Shankaramatham Road, Santhipuram, Visakhapatnam 3. The Principal Commissioner of Income Tax, Visakhapatnam 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam