GRUHINI SAMAJ, NAGPUR V. DEPUTY COMMISSIONER OF INCOME TAX, BANGALORE

ITA 35/NAG/2022

AI Insights

The case involves Gruhini Samaj, an appellant, contesting decisions made by the lower tax authorities regarding the assessment year 2014-15. The primary issues were the rejection of a Section 11 exemption claim and the application of the maximum marginal tax rate instead of the rate applicable to individuals/HUF under Section 164 of the Income Tax Act, 1961. The Tribunal found that the assessee did not possess the necessary Section 12AA registration for the exemption claim, leading to the rejection of that claim. However, the Tribunal noted that the CIT(A) had not addressed the issue of the tax rate applied, leading to the decision to remand this issue back to the CIT(A) for further examination.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 136686 (ITAT-NAGPUR)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowedPartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 02-11-2022
• Assessment Year: misc
• Appeal Filed On: 06-03-2022
• Other Referred Cases: CIT vs. U.P. Forest Corpn. [1998] 230 ITR 945 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANSHU R. DESHPANDE
• Keywords: Maximum Marginal Rate
• Section: 11; 12AA; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH “SMC”, NAGPUR BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.35/NAG/2022 िनधाŊरण वषŊ / Assessment Year : 2014-15 Gruhini Samaj, Plot No.252, Gruhini Samaj, Old Ramdaspeth, Nagpur – 440010 Maharashtra PAN : AABTG8156G Vs. DCIT, CPC, Bangalore (Appellant) (Respondent) आदेश / ORDER PER S.S. GODARA, JM : This assessee’s appeal for AY 2014-15 arises against the National Faceless Appeal Centre, Delhi NFAC’s order dated 07-01-2022, passed in case No. ITBA/NFAC/S/250/2021- 22/1038519820(1), involving proceedings under Section 250 of the Income Tax Act, 1961 in short the Act. Heard both the parties. Case file perused. 2. Coming to the assessee’s first and foremost substantive ground that both the learned lower authorities have erred in law and on facts in rejecting its section 11 exemption claim of Rs.3,41,828/-, learned counsel could hardly dispute that it does Appellant by Shri Anshu R. Deshpande Respondent by Shri G.J. Ninawe Date of hearing 03-11-2022 Date of pronouncement 21-11-2022 ITA No. 35/NAG/2022 Gruhini Samaj 2 not carry section 12AA registration which forms a mandatory condition as per CIT vs. U.P. Forest Corpn. [1998] 230 ITR 945 (SC). That being the case, there is hardly heed for this tribunal to delve deeper in the relevant factual matrix. Rejected accordingly. 3. Next comes the assessee’s latter substantive ground that both the learned lower authorities have erred in law and on facts in assessing at maximum marginal rate and not at the rate of tax as applicable to individual/HUF u/s 164 of the Act. The Revenue could hardly rebut the clinching fact that the CIT(A) has nowhere decided the assessee’s corresponding second substantive ground raised in the lower appellate proceedings. I, therefore, deem it proper to restore the assessee’s instant latter grievance back to the CIT(A) for his proper adjudication as per law within three effective opportunities of hearing. Ordered accordingly. 4. No other argument has been raised during the course of hearing. 5. This assessee’s appeal is partly allowed for statistical purposes in above terms. ITA No. 35/NAG/2022 Gruhini Samaj 3 Order pronounced in the Open Court on 21 st November, 2022. Sd/- (S.S.GODARA) JUDICIAL MEMBER प ु णे Pune; Ǒदनांक Dated : 21 st November, 2022 Sujeet आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order is forwarded to : 1. अपीलाथȸ / The Appellant; 2. Ĥ×यथȸ / The Respondent; 3. 4. 5. The CIT(A) concerned The Pr.CIT concerned ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, Nagpur “SMC” / DR ‘SMC’, ITAT, Nagpur; 6. गाड[ फाईल / Guard file. आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune