I.T.O.(Exemption), Ward-1(2), Kolkata, Kolkata V. Baijnath Chaudhary Charitable Trust, Kolkata

ITA 530/KOL/2022

AI Insights

The case involves the Income Tax Officer (Exemption), Ward-1(2), Kolkata as the appellant and Baijnath Chaudhary Charitable Trust as the respondent. The Revenue appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which had granted relief to the respondent. The primary contention from the Revenue was the non-submission of Form No. 10B within the prescribed time, arguing that the power to condone this delay rested with the CBDT and had not been delegated to the Commissioner at the time of the impugned order. However, the Tribunal found that the appeal did not meet the criteria for exceptions under the CBDT Circular, leading to the dismissal of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129104 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 01-01-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 15-09-2022
• Laws Referred To: CBDT Circular No. 17/2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Tax effect
• Section: 10B

Judgement Text

ITA No. 530/KOL/2022 Assessment Year: 2020-2021 Baijnath Chaudhary Charitable Trust 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Girish Agrawal, Accountant Member I.T.A. No. 530/KOL/2022 Assessment Year: 2020-2021 Income Tax Officer (Exemption),.............Appellant Ward-1(2), Kolkata, 5 th Floor, 10B, Middleton Row, Kolkata-700071 -Vs.- Baijnath Chaudhary Charitable Trust,....Respondent 37A, Block-B, New Alipore, South Kolkata, Kolkata-700053 [PAN: AAATB9152E] Appearances by: Shri G. Hukugha Sema, CIT, appeared on behalf of the Revenue Shri Brijesh Singh, A.R., appeared on behalf of the assessee Date of concluding the hearing : January 02, 2023 Date of pronouncing the order : January 09, 2023 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The Revenue is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 14.07.2022 passed for A.Y. 2020-21. ITA No. 530/KOL/2022 Assessment Year: 2020-2021 Baijnath Chaudhary Charitable Trust 2 2. The ld. Counsel for the assessee, at the very outset, submitted that tax effect by virtue of relief given by the ld. CIT(Appeals) is less than Rs.50 lakhs and, therefore, in view of the CBDT Circular No. 17/2019 dated 8 th August, 2019, the present appeal is not maintainable. 3. On the other hand, ld. D.R. submitted that this case falls within the ambit of exceptions provided in the Circular. 4. With the assistance of ld. Representatives, we have gone through the record carefully. The exceptions carved out at Serial No. 10 of the Circular read as under:- "10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: (a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c)Where Revenue Audit objection in the case has been accepted by the Department, or (d)Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/undisclosed foreign bank account. (e) Where addition is based on information received from external sources in the nature of law- enforcement agencies such as CBI/ED/DRI/SFIO/Directorate General of GST Intelligence (DGGI). ITA No. 530/KOL/2022 Assessment Year: 2020-2021 Baijnath Chaudhary Charitable Trust 3 (f) Cases where prosecution has been filed by the Department and is pending in the Court." 5. The contention of the ld. CIT(DR) is that assessee failed to submit Form No. 10B within the time. The time limit to file such an affidavit could only be condoned by the CBDT. Recently CBDT has relegated this power to the ld. Commissioner. This power did not vest with the ld. Commissioner at the time when impugned order was passed and, therefore, ld. CIT(Appeals) is not justified in maintaining this issue. 6. We have duly considered the rival contentions. Whatever submission is being raised by the ld. D.R. is on merit of the issue involved. We have invited his attention towards clauses (a) to (f) at Serial No. 10 of the Circular and asked him to identify in which clause, case of the assessee falls. He failed to point out anything and, therefore, this appeal is not maintainable in the present form. It is to be dismissed by applying the above Circular. 7. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 09 January, 2023. Sd/- Sd/- (Girish Agrawal) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 09 th day of January, 2023 ITA No. 530/KOL/2022 Assessment Year: 2020-2021 Baijnath Chaudhary Charitable Trust 4 Copies to :(1) Income Tax Officer (Exemption), Ward-1(2), Kolkata, 5 th Floor, 10B, Middleton Row, Kolkata-700071 (2) Baijnath Chaudhary Charitable Trust, 37A, Block-B, New Alipore, South Kolkata, Kolkata-700053 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) Commissioner of Income Tax- ; (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.