Ganga Prasad Verma Memorial Society, Lucknow V. Income Tax Officer (Exemption), Lucknow

ITA 430/LKW/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6359 (ITAT-LUCKNOW)
• Duration Of Justice: 2 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 27-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARISH GIDWANI
• Section: 154; 143(3); 12A; 12AA

Judgement Text

I.T.A. No.430/Lkw/2019 Assessment Year:2010-11 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘B’, LUCKNOW (THROUGH VIRTUAL HEARING) BEFORE SHRI A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER I.T.A. No.430/Lkw/2019 Assessment Year:2010-11 Ganga Prasad Verma Memorial Society, Aminuddaula Parik, Aminabad, Lucknow. PAN:AAAAG1729P Vs. Income Tax Officer (Exemption), Lucknow. (Appellant) (Respondent) O R D E R PER T. S. KAPOOR, A.M. This is an appeal filed by the assessee against the order of learned CIT(A) dated 08/04/2019 pertaining to assessment year 2010-11. The assessee has taken various grounds of appeal however, the crux of grounds of appeal is the grievance with the action of learned CIT(A) by which he has upheld the action of Assessing Officer whereby he has rejected the application filed by assessee u/s 154 of the Act. 2. Explaining the facts of the case, Learned counsel for the assessee submitted that the assessee is a registered charitable society and enjoys Appellant by Shri P. K. Kapoor, C. A. Respondent by Shri Harish Gidwani, D.R. Date of hearing 14/12/2021 Date of pronouncement 15/12/2021 I.T.A. No.430/Lkw/2019 Assessment Year:2010-11 2 exemption u/s 12AA of the Act and during the year under consideration the assessee had filed return of income at nil. It was submitted that since there was tax deducted at source, which amounted to Rs.1,57,159/- and which was due to be refunded to the assessee but which was not refunded by the Department and on a follow up, the assessee was refunded an amount of Rs.45,650/- and therefore, the assessee filed a rectification application and our attention was invited to page 4 of the paper book where a copy of rectification letter dated 09/05/2016 was placed. Learned counsel for the assessee submitted that since there was no response from the Revenue therefore, another application u/s 154 was filed and our attention was invited to page 9 of the paper book where copy of such letter was placed. Learned counsel for the assessee submitted that the Assessing Officer rejected the application filed by the assessee u/s 154 and therefore, appeal was filed before learned CIT(A) who again rejected the application by holding that the application filed by the assessee u/s 154 was time barred. Learned counsel for the assessee submitted that the earlier application was filed on 09/05/2016 which was within the time and our attention was invited to page 4 of the paper book where a copy of application, duly acknowledged by CIT (Exemption), was placed. Learned counsel for the assessee submitted that this plea was taken before the learned CIT(A) but he rejected the same by holding that the filing of such application was not substantiated by the assessee. Learned counsel for the assessee submitted that since it is an undisputed fact that the assessee was not liable to pay tax as it was registered u/s 12A and it is also undisputed fact that a sum of Rs.1,57,159/- was deducted on behalf of the assessee therefore, the assessee was entitled for entire refund of amount. 3. Learned D.R., on the other hand, submitted that learned CIT(A) has recorded a clear cut finding that the earlier application dated 09/05/2016 I.T.A. No.430/Lkw/2019 Assessment Year:2010-11 3 was not substantiated and the copy, referred to by learned A.R., has been acknowledged by learned CIT (Exemptions) and not by the Assessing Officer and therefore, the application filed by the assessee u/s 154 was time barred and hence has been rightly rejected by the authorities below. 4. We have heard the rival parties and have gone through the material placed on record. We find that it is undisputed fact that a sum of Rs.1,57,159/- was deducted on behalf of the assessee and the assessee, being registered u/s 12A, the income tax liability was nil and even the assessment order passed by the Assessing Officer u/s 143(3) has noted that the assessee has been assessed at nil income and has further noted that pre-paid tax, paid by the assessee, has to be refunded. Therefore, the assessee is entitled to get refund of all the pre-paid taxes even if the application filed by the assessee for rectification u/s 154 is time barred as the law lays down that the Revenue cannot collect an amount from any person which is not due from him. Since the assessee has been assessed at nil income therefore, no tax was due from it and assessee is entitled to full refund of tax deducted on behalf of it. Therefore, Assessing Officer is directed to refund the correct amount to the assessee after going through the complete records. In view of the above, the appeal of the assessee is allowed. 5. In the result, the appeal of the assessee stands allowed. (Order pronounced in the open court on 15/12/2021) Sd/. Sd/. ( A. D. JAIN ) ( T. S. KAPOOR ) Vice President Accountant Member Dated:15/12/2021 *Singh I.T.A. No.430/Lkw/2019 Assessment Year:2010-11 4 Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. The CIT(A) 5. D.R., I.T.A.T., Lucknow