Chhotu Ram Kisan Shiksha Samiti, Jind V. ITO, Ward -1, Jind

ITA 49/CHANDI/2023

AI Insights

The case involves Chhotu Ram Kisan Shiksha Samiti, an educational society, appealing against the order of the CIT(A), which confirmed the addition of Rs. 45,37,253 under section 69A of the Income Tax Act for the Assessment Year 2017-18. The primary contention was the denial of exemption under sections 11 and 12 due to the late submission of Form 10B and the income tax return. The CIT(A) had relied on CBDT Circular No. 10/2019, which mandates timely submission of these documents to claim exemptions. However, the Assessee later obtained condonation for the delays from the CIT(E), which was not considered by the CIT(A). The Tribunal, acknowledging the condonation, remanded the matter back to the AO for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127790 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-07-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 07-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Set aside
• Section: 12; 11; 12A; 10B; 69A

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “बी” , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH ी आकाश द प जैन, उपा य! एवं ी %व&म (संह यादव, लेखा सद-य BEFORE: SHRI. AAKASH DEEP JAIN, VP & SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA NO. 49/Chd/ 2023 नधा रण वष / Assessment Year : 2017-18 Chhotu Ram Kisan Shiksha Samiti New Shyam Nagar, Sant Nagar, Patiala Chowk, Jind-126102, Haryana बनाम The ITO Ward-1, Jind थायी लेखा सं./PAN NO: AABAC0303N अपीलाथ /Appellant यथ /Respondent नधा रती क! ओर से/Assessee by : Shri Nikhil Goyal, Advocate Shri Ashok Goyal, CA राज व क! ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr. DR स ु नवाई क! तार&ख/Date of Hearing : 27/07/2023 उदघोषणा क! तार&ख/Date of Pronouncement : 04/08/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A), NFAC, Delhi dt. 22/12/2022 for the Assessment Year 2017-18. 2. In the present appeal, the assessee has raised the following grounds of apepal: 1. Whether the Ld. CIT(A) has erred in confirming addition of Rs. 45,37,253/- under section 69A of the Act ? 2. Whether the Ld. CIT(A) has erred in not considering the claim for exemption under section 12A ? 3. Whether the Ld. CIT(A) has erred in not adjudicating the additional evidence place on record at the time of appellate proceedings ? 4. Whether denial of claim for exemption under section 11 on the sole ground of belated submission of Form 10B is bad in law and liable to be quashed ? 2 3. During the course of hearing, the Ld. AR submitted that the assessee is an educational society registered under the Haryana Societies Registration & Regulation Act, 2012 as well as registered under section 12A of the Act. It was submitted that the assessee’s claim for exemption under section 11 & 12 was denied on account of the fact that the assessee has not filed the return of income as well as Audit Report in Form 10B before the prescribed due date. 4. Taking us through the findings of the Ld. CIT(A) which are contained in para 7 of the impugned order, it was submitted that Ld. CIT(A) has referred to the CBDT Circular No. 10/2019 and has held that the assessee has submitted Form 10B only during the appellate proceedings without filing condonation of delay as per the CBDT Circular and it was accordingly, held that the assessee did not fulfill the conditions mentioned under 12A which is mandatory to claim the exemption under section 11 & 12 of the Act. 5. It was submitted that the assessee has since filed an application seeking condonation of delay in filing the return of income as well as filing the Audit Report in Form 10B and the Ld. CIT(E), Chandigarh has passed the necessary orders under section 119(2)(v) dt. 17/02/2023 and 26/07/2023 respectively condoning the delay in filing Form 10B as well as delay in filing the return of income. It was accordingly submitted that the delay in filing the return of income as well as the Audit Report has since been condoned and therefore matter may be set aside to the file of the AO to decide the same afresh after taking into consideration the orders so passed by the Ld. CIT(E) under section 119(2)(b) condoning the delay in filing the Form 10B as well as returned income. 6. Per contra, the Ld. DR has relied on the order of the lower authorities. 7. We have heard the rival contentions and perused the material available on the record. Given that the Ld. CIT(E) has condoned the delay in filing the Form 10B as well as the returned income for the impugned assessment year, we 3 deem it appropriate to restore the matter back to the file of the AO to take into consideration the returned income as well as the Audit Report in Form 10B and decide the matter afresh as per law after providing reasonable opportunity to the assessee. 8. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 04/08/2023. Sd/- Sd/- आकाश द प जैन %व&म (संह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा य! / VICE PRESIDENT लेखा सद-य/ ACCOUNTANT MEMBER AG Date: 04/08/2023 आदेश क! त,ल-प अ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकर आय ु /त/ CIT 4. -वभागीय त न2ध, आयकर अपील&य आ2धकरण, च5डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar