ITO, Exemption Ward, Jodhpur V. M/s. Society for Education Conscietisation AWareness & Training, Nagaur

ITA 461/JODH/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6373 (ITAT-JODHPUR)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 04-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 10B; 143(1); 250; 154; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI N.K.SAINI, VICE PRESIDENT AND SHRI A. T. VARKEY, JUDICIAL MEMBER ITA NO.461/JODH/2018 (ASSESSMENT YEAR-2014-15 ) INCOME TAX OFFICER, EXEMPTION WARD, JODHPUR, ROOM NO. 56, AAYAKAR BHAWAN, PAOTA C ROAD, JODHPUR VS M/S. SOCIETY FOR EDUCATION CONSCIETISATION AWARENESS & TRAINING, HODHGRAM, KUKANWALI, NAGAUR,RAJASTHAN PAN: AADTS6777M (APPELLANT) (RESPONDENT) APPELLANT BY SH. P.K. SINGI, DR RESPONDENT BY SH. O. P.BATHEJA, AR DATE OF HEARING 06.05.2019 DATE OF PRONOUNCEMENT 06.05.2019 O R D E R PER A. T. VARKEY, J.M. THIS IS AN APPEAL PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS), AJMER DAT ED 04.07.2018 FOR AY 2014-15 ON THE FOLLOWING SOLE GROUND OF APPEAL. 1. ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD.CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE MA DE BY AO OF THE CLAIM FOR EXEMPTION OF RS.94,98,048/- MADE BY THE A SSESSEE U/S. 11 O THE I. T. ACT, 1961 DESPITE THE FACT THAT THE ASSESSEE FAILED TO FILE AUDIT REPORT IN FORM 10B ALONGWITH RETURN OF INCOME AS PE R THE PROVISIONS OF SECTION 12(1)(B) OF THE ACT. 2 ITA NO.461/JODH/2018 M/S. SOCIETY FOR EDUCATION CONSCIETISATION AWARENESS & TRAINING ., AY 2014-15 2. BRIEF FACTS OF THE CASE AS NOTED BY THE LD. CIT( A) ARE THAT THE ASSESSEE SOCIETY FOR EDUCATION HAS FILED ITS RETURN OF INCOME ON 13. 09.2014 DECLARING TOTAL INCOME AS NIL AFTER CLAIMING THE EXEMPTION OF RS.14,98,048/ - U/S. 11 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). ALONG WITH THE RETURN OF INCOME THE AUDIT REPORT IN THE FORM 10B WAS NOT FILED ON LINE (ELECTRONICALLY UPDATED) AS REQUIRED U/S. 12A(B) READ WITH RULE 17B OF THE INCO ME TAX RULES, 1962 (HEREINAFTER REFERRED TO AS THE RULES). THEREFORE, WHILE PROC ESSING THE RETURN OF INCOME U/S. 143(3), THE AO VIDE INTIMATION DATED 16.03.2016 ISS UED U/S. 143(1) OF THE ACT DISALLOWED THE CLAIM OF THE ASSESSEE FOR EXEMPTION OF RS.94,98,048/- CLAIMED BY THE ASSESSEE U/S. 11 OF THE ACT. THE ASSESSEE AFTER HAV ING LEARNED ABOUT THE DISALLOWANCE OF THE EXEMPTION, FILED AN APPLICATION U/S. 154 OF THE ACT ON-LINE ON 09.09.2017 WITH CPC, BANGLORE REQUESTING THE AO TO ALLOW THE EXEMPTION AS CLAIMED BY THE ASSESSEE IN RETURN OF INCOME FILED BY IT. T HE AO (DCIT, CPC., BANGLORE) REJECTED THE REQUEST FOR RECTIFICATION FILED BY THE ASSESSEE VIDE ORDER DATED 15.09.2017 BY OBSERVING AS UNDER: SUBJECT: REJECTION OF REQUEST FOR RECTIFICATION, U NDER SECTION154 OF THE INCOME TAX ACT,1961 REG. PLEASE REFER TO THE RECTIFICATION REQUEST FILED BY YOU FOR THE ASSESSMENT YEAR 2014-15 IN RESPECT OF ABOVEMENTIONED ORDER AND RECEIVED AT CEN TRALISED PROCESSING CENTRE ON 09.09.2017. ON VERIFICATION, IT IS SEEN THAT THERE IS NO PRIMA FACIE ERROR IN THE ORDER WHICH YOU HAVE SOUGHT TO BE RECTIFIED. THEREFORE, YOUR APPLICATIO N FOR RECTIFICATION UNDER SEC. 154 IS REJECTED, FOR THE FOLLOWING REASONS (IF ANY). AS SEEN FROM THE RETURN OF INCOME FILED, THE ASSESS EE HAS CLAIMED EXEMPTION U/S. 11 OF INCOME TAX ACT,1961 BUT FORM 10B IN AUDIT REPORT IS E-FILED AFTER THE DATE OF FILING THE RETURN. HENCE, DEDUCTION/EXEMPTION U/S. 11 IS NOT A LLOWED. IN VIEW OF THE ABOVE, THIS RECTIFICATION REQUEST IS REJECTED AND RETURN STANDS TRANSFERRED TO THE ASSESSING OFFICER. KINDLY CONTACT OUR JURISDICTIONAL ASSESSING OFFICER FOR FURTHER DETAILS. 3. AGGRIEVED BY THE AFORESAID ACTION OF THE DCIT, C PC, BANGLORE THE ASSESSEE PREFERRED AND APPEAL BEFORE THE LD. CIT(A), WHO GAV E RELIEF TO THE ASSESSEE TAKING 3 ITA NO.461/JODH/2018 M/S. SOCIETY FOR EDUCATION CONSCIETISATION AWARENESS & TRAINING ., AY 2014-15 NOTE THAT THE ASSESSEE HAD OBTAINED THE AUDIT REPOR T IN FORM 10B ON 13.08.2014 AND RETURN OF INCOME WAS FILED BY THE ASSESSEE ON 30.09 .2014. THUS, ACCORDING TO LD. CIT(A), AT THE TIME OF MAKING THE CLAIM OF EXEMPTIO N U/S. 11 OF THE ACT IN THE RETURN OF INCOME FILED BY THE ASSESSEE, THE COMPLIANCE AS REQUIRED BY THE LAW I.E. OF OBTAINING THE AUDIT REPORT AT THE TIME OF CLAIMING EXEMPTION U/S. 11 HAS BEEN COMPLIED WITH BY THE ASSESSEE. THEREFORE, THE LD. C IT(A) RELYING ON THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE O F CIT VS. DR. SH. L. M. SINGHVI (2007) 289 ITR 425 (RAJ.) WAS PLEASED TO GIVE RELIE F TO THE ASSESSEE. AGGRIEVED, THE REVENUE IS BEFORE US. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROU GH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE NOTE THAT THE ASSESS EE OBTAINED THE COPY OF THE AUDIT REPORT IN FORM 10B ON 13.08.2014 AND THE RET URN OF INCOME WAS FILED BY THE ASSESSEE ON 30.09.2014. IT WAS ALSO BROUGHT TO OUR NOTICE THAT THE ASSESSEE HAD SUO-MOTO UPLOADED THE AUDIT REPORT IN FORM 10B ON 1 5.06.2015 WHICH WAS SUCCESSFULLY UPLOADED AND THE CPC, BANGALORE HAS PR OCESSED THE RETURN OF INCOME OF THE ASSESSEE ONLY ON 16.03.2016. THUS, THE REQUIRE MENT OF LAW THAT THE ASSESSEE SHALL HAVE ITS ACCOUNT AUDITED HAS BEEN COMPLIED WI THIN THE TIME PRESCRIBED BY THE STATUTE SINCE THE ASSESSEE HAS OBTAINED THE AUDIT R EPORT IN FORM 10B ON 13.08.2014 BEFORE THE RETURN OF INCOME WAS FILED THEREAFTER ON LY ON 30.09.2014. WE NOTE THAT THE ASSESSEE HAS AUDITED ITS ACCOUNT AS PER LAW AND OBTAINED COPY OF THE AUDIT REPORT IN FORM 10B AND ALSO TAKING NOTE THE HONBL E JURISDICTIONAL HIGH COURT HIGH COURTS HELD THAT THE FILING OF FURNISHING THE AUDIT REPORT ALONG WITH THE RETURN OF INCOME IS DIRECTORY AND NOT MANDATORY IN THE FOLLOW ING CASES: (I) CIT VS. GARMENT EXPORTERS ASSOCIATION OF RAJAST HAN (2016 386 ITR 20 (RAJ.), II) CIT VS. BHAWANI PLYWOOD (P) LTD. (2010) 1 TAXM ANN.COM 250 (P&H), III) ITO VS. SMT. MANDIRA D. VAKHARIA (2001) 250 I TR 432 (KAR.), 4 ITA NO.461/JODH/2018 M/S. SOCIETY FOR EDUCATION CONSCIETISATION AWARENESS & TRAINING ., AY 2014-15 IV) CIT VS. KRISHI UPAJ MANDI SAMITY, AJMER, ITA NO . 168/2018 DOJ 0-7.01.2019 (RAJ.). RESPECTFULLY RELYING ON THE RATIO DECIDENDI BY THE HONBLE JURISDICTIONAL HIGH COURT AND OTHER HONBLE HIGH COURTS AND TAKING NOTE THAT LD. CIT(A) HAS ALSO RELIED ON THE ORDER OF THE HONBLE JURISDICTIONAL HIGH COURT, WE CONFIRM THE ORDER OF THE LD. CIT(A) AND DISMISS THE APPEAL OF THE REVENUE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH MAY, 2019 SD/- SD/- (N.K. SAINI) (A. T. VARKEY) VICE PRESIDENT JUDICIAL MEMBER DATED : 06.05.2019 J.D. SR. PS. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. / CIT 4. ( )/ THE CIT(A) 5. % , '% , * / DR, ITAT, JODHPUR 6. - / GUARD FILE / BY ORDER / ASSISTANT REGISTRAR