COLLEGE OF PHYSICIANS & SURGENS OF MUMBAI, MUMBAI V. INCOME TAX OFFICER (E)-1(2), MUMBAI

ITA 4494/MUM/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5470 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 16-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT PRATAP SINGH DR VIRTUAL
• Keywords: Condonation of delay
• Section: 12A; 143(1); 22; 10(23C); 154

Judgement Text

IN THE INC OME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI S . RIFAUR RAHMAN, AM & SHRI RAM LAL NEGI, JM ./ I.T.A. NO . 4494 / MUM/ 2018 ( / ASSESSMENT YEAR: 2013 - 14 ) COLLEGE OF PHYSICIANS & SURGENS OF MUMBAI, ADV. AARTI SATHE, 5 B, BUONA CASA, 2 ND FLOOR, SIR PM ROAD, FORT, MUMBAI - 400 023. / VS. ITO(E) - 1(2), ROOM NO. 354, M. K. ROAD, AAYAKAR BHAVAN, MUMBAI - 400 020 ./ ./ PAN NO. AA ATC 0457 H ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : MS. AARTI SATHE, AR / RESPONDENTBY : SHRI AMIT PRATAP SINGH, DR VIRTUAL D ATE OF HEARING : 02.09 .2020 DATE OF PRONOUNCEMENT : 1 7.09.2020 / O R D E R PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER : THE PRESENT A PPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. COMMIS S IONER OF INCOME TAX (APPEALS) - 3 IN SHORT REFERRED AS LD. CIT(A) , MU MBAI DATED 01.03. 2018 FOR A SSESSMENT YEAR (IN SHORT A Y ) 2013 - 14 . 2 I.T.A. NO. 4494 /MUM/201 8 COLLEGE OF PHYSICIANS & SURGENS OF MUMBAI 2 . THE BRIEF FACTS OF THE CASE ARE, ASSESSEE IS EDUCATIONAL TRUST REGISTERED WITH THE DIRECTOR OF INCOME TAX (EXEMP), MUMBAI, U/S 12A OF THE I.T. ACT 1961 (IN SHORT ACT) VIDE REG. NO. INS/11914 DATED 19 TH JULY 1977. 3. THE ASSESSEE HAD APPLIED FOR GRANT OF EXEMPTION OR CONTINUANCE THEREOF U/S 10(23C) (VI) & (VIA) OF T HE ACT IN FORM NO. 56D ON 22 ND SEPTEMBER 2014 FOR THE AY 2011 - 12 TO 2013 - 14 TO THE DIT(EXMP), HO AND THESE APPLICATIONS ARE PENDING BEFORE THE AUTHORITIES AS ON THE DATE OF ASSESSMENT ORDER PASSED U/S 143(1) OF THE ACT I.E. ON 29 TH MARCH, 2015. ACCORDINGLY , AO RAISED A DEMAND OF RS. 2,52,09,743/ - . 4. AGGRIEVED WITH THE ABOVE ORDER, ASSESSEE FILED A RECTIFICATION APPLICATION U/S 154 OF THE ACT ON 29 TH APRIL 2015 BEFORE THE JURISDICTIONAL AO I.E. PRESENT ITO. AO ISSUED NOTICE ASKING ASSESSEE TO PRODUCE THE C OPY OF APPROVAL LETTER RECEIVED FROM CCIT IN RESPECT OF EXEMPTION U/S 10(23C)(VI) FOR VERIFICATION. 5. IN RES PONSE, ASSESSEE INFORMED THAT IT HAD APPLIED FOR GRANT OF EXEMPTION U/S 10(23C)(VI) AND THE SAID APPLICATION IS STILL 3 I.T.A. NO. 4494 /MUM/201 8 COLLEGE OF PHYSICIANS & SURGENS OF MUMBAI PENDING. SINCE THERE IS NO A PPROVAL, AO DISMISSED THE RECTIFICATION APPLICATION FILED BY THE ASSESSEE. 6. AGGRIEVED WITH THE ABOVE, ASSESSEE FILED THE APPEAL BEFORE LD. CIT(A) AND LD. CIT(A) OBSERVED AS UNDER: - I) ASSESSEE IS NOT ELIGIBLE U/S 10(23C)(VI) OF THE ACT WITHOUT PROPER AP PROVAL. II) THE ISSUE BEFORE HIM IS WHETHER OR NOT THERE WAS AN ERROR IN THE INTIMATION. THE ISSUE IS WHETHER THERE WAS A MISTAKE IN THE ASSESSMENT WHICH ARE APPARENT FROM THE RECORD. III) SINCE, THERE IS NO MISTAKE IN THE INTIMATION PASSED U/S 143(1) OF THE ACT, ACCORDINGLY, THE RECTIFICATION APPLICATION FILED U/S 154 IS DISMISSED. 7. AGGRIEVED WITH THE ABOVE ORDER, ASSESSEE IS IN APPEAL BEFORE US. 8. AT THE TIME OF HEARING , LD. AR SUBMITTED THAT AT THE TIME OF ASSESSMENT AND FILING OF APPEAL BEFORE LD. CIT(A), ASSESSEE DID NOT HAVE PROPER APPROVAL OF EXEMPTION U/S 10(23C)(VI) OF THE ACT. NOW ASSESSEE HAS RECEIVED PROPER APPROVAL OF EXEMPTION F R OM CIT(EXMP) DATED 30 TH SEPTEMBER 2019 AND SHE FILED THE 4 I.T.A. NO. 4494 /MUM/201 8 COLLEGE OF PHYSICIANS & SURGENS OF MUMBAI COPY OF RELEVANT APPROVAL ALONGWITH APPROVAL FROM CBDT FOR CONDONATION OF DELAY AND GRANT OF APPROVAL OF EXEMPTION. LD. AR BROUGHT TO OUR NOTICE THE ABOVE FACTS AND SUBMITTED THE RELEVANT DOCUM ENTS IN SUPPORT OF THE SUBMISSIONS AND COPY OF APPROVALS . 9. CONSIDERED THE RIVAL SUBMISSION AND MATERIAL PLACED ON RECORD. LD. AR SUBMITTED THE COPY OF THE APPROVALS FROM CBDT AND CIT(EXMP), AS PER WHICH, ASSESSEE IS ELIGIBLE TO CLAIM EXEMPTION U/S 10(23C)(VI) OF THE ACT. HOWEVER, DUE TO NON - AVAILABILITY OF THE APPROVAL, ASSESSEE WAS DENIED BENEFIT OF CLAIMING EXEMPTIO N IN INTIMATION U/S 143(1) OF THE ACT. SINCE, THE TAX AUTHORITIES ITSELF CONDONED THE DELAY OF FILING APPLICATIONS OF EXEMPTIONS U/S 10(23C)(VI) OF THE ACT AND NOW GRANTED THE APPROVAL FOR EXEMPTION. IN OUR CONSIDERED VIEW, THE APPEAL FILED BY THE ASSESSEE BECOMES INFRUCTUOUS AND WE ARE REMITTING THIS ISSUE BACK TO THE FILE OF AO TO RECTIFY THE INTIMATION PASSED U/S 143(1) AND CONSIDER THE RECTIFICATION APPLIC ATION FILED BY THE ASSESSEE. A CCORDINGLY ALLOW THE EXEMPTION AVAILABLE TO THE ASSESSEE IN PURSUANT TO THE APPROVAL GRANTED BY CBDT AND CIT(EXMP). THEREFORE, THIS APPEAL STANDS ALLOW ED IN FAVOUR OF 5 I.T.A. NO. 4494 /MUM/201 8 COLLEGE OF PHYSICIANS & SURGENS OF MUMBAI THE ASSESSEE AND WE ARE DIR ECTING THE AO TO PASS THE APPROPRIATE ORDER IN ACCORDANCE WITH LAW. 10. IN THE NET RESULT, THE APPEAL FI LED BY THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17.09. 2020 . S D/ - S D/ - (R. L. NEGI ) (S. RIFAUR RAHMAN ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 17.09 .2020 SR.PS. DHANANJAY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F I LE / BY ORDER, . / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI