Appeal details
Counselvise Citation
[2024] 100 COUNSELVISE.COM (IT) 4422 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
5 month(s) 27 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
02-01-2024
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
SMC
Next Hearing Date
27-12-2023
Assessment Year
2021-2022
Appeal Filed On
06-07-2023
Judgement Text
आयकरअपीलीयअधिकरण , अहमदाबादनयायपीी INTHEINCOMETAXAPPELLATETRIBUNAL, ‘’SMC’’BENCH,AHMEDABAD BEFORESHRIWASEEMAHMED,ACCOUNTANTMEMBER आयकरअपीलसं./ITANo.555/AHD/2023 धििाधरणवरध / Asstt.Year:2021-2022 GyandeepCharitableTrust, A/204,AshutoshApt., B/h.St.XaviersSchool, Naranpura, Ahmedabad-380013. PAN:AACTG0352M Vs. A.D.I.T, CPC, Bengaluru, Now IncomeTaxOfficer, Ward-3(3)(1), Ahmedabad. (Applicant)(Respondent) Assesseeby:ShriS.NDivatia,A.R Revenueby:Ms.SaumyaPandeyJain,Sr.D.R सुिवाईकीतारीख/DateofHearing:28/12/2023 घोरणाकीतारीख/DateofPronouncement:03/01/2024 आदेश/ORDER PERWASEEMAHMED,ACCOUNTANTMEMBER: ThecaptionedappealhasbeenfiledattheinstanceoftheAssessee againsttheorderoftheNationalFacelessAppealCentre(NFAC),Delhi,arisingin thematterofassessmentorderpassedunders.143(1)oftheIncomeTaxAct, 1961(here-in-afterreferredtoas"theAct")relevanttotheAssessmentYear 2021-2022. 2.Theonlygrievanceraisedbytheassesseeisthattheld.CIT(A)erredinnot grantingexemptionu/s11oftheActonthereasoningthattherewasadelayin filingForm10Bi.e.auditreport 3.Thenecessaryfactsarethattheassesseeisapubliccharitabletrustand claimedtobeengagedincarryingoutcharitableactivities.Itfileditsreturnof incomedeclaringincomeatRs.1,83,230.00dated8-1-2022However,while ITAno.555/AHD/2023 Asstt.Year2021-2022 2 processingthereturnu/s143(1)oftheAct,theexemptionclaimedu/s11ofthe ActwasdeniedandtheincomewasassessedatRs.2,68,841.00only. 4.Aggrievedassesseepreferredanappealbeforetheld.CIT(A)who dismissedthesamewhileobservingasunder: 82Duringappellateproceedings,theappellanthasfiledcopyofForm10Buploadedfor theyearbytheappellanttrustinordertoestablishthatithascompliedwithallconditions requiredaspersection11.Itisnoticedthatthereturnofincomefortheyearwasfiled belatedlybytheappellanton08.01.2022whereastheduedatetofilethereturnofincome fortheAY2021-2022was31.12.2021.FurtherForm10Bdated08.01.2022wasuploaded one-filingportalon30.03.2022withacknowledgmentno503742200300322.ThusForm 10Bwasneitherfiledontheduedateoffilingofreturnofincomeu/s139(1)ie. 31.12.2021noronthedateofactualfilingofreturnofincomei.e.8-01-2022.Itwasfiled 3monthsaftertheactualdateoffilingofreturnofincomeon30-03-2022.Provisionsof section12A(1)(b)requiringassesseetofurnishauditreporthasbeenamendedwef 01.04.2020.Requirementoffurnishingauditreportbeforetheduedateprescribedin section.44ABismademandatorywef01.04.2020i.e.fromAY2020-21.Theassessment yearunderconsiderationbeingAyr2021-22,amendedprovisionsofsection12A(1) (b)areapplicable.Inthepresentcase,section12A(1)(b)requiredtheappellanttofile Form10Bbeforetheduedateoffilingofreturnofincomeu/s139(1)whichinthiscaseis 31.12.2021.IfthereisdelayinfilingForm10B,delaycanberegularisedbymakingan applicationtoCITconcernedforcondonationofdelayinfilingForm10Basprescribedby CBDTcircularno19/2020dated03.11.2020.Inthepresentcasetheappellanthasfiled Form10Bbelatedlyon30.03.2022.Butitappearsthatappellanttrusthasnotmadeany applicationforthecondonationofdelayinfilingform10Bbelatedly.Thereforeno condonationwasgrantedtotheappellanttrusttofileForm10Btillthedateofprocessing ofreturnofIncome.Duringtheappellateproceedingstheappellantwasspecificallyasked toprovidedetailsofcondonationgrantedbyCITconcerned,ifany,videnoticedated2-05- 2023.Thoughappellantrespondedtothenoticeon5-05-2023butfailedtoprovideany detailsregardingcondonationofdelaygrantedtotheappellantallowingittofileForm10B belatedlyfortheyearunderconsideration.Theappellantcouldnotevenprovideevidence toshowthatanapplicationforcondonationhasbeenmade.Itmeansappellantclearly failedtosatisfyprovisionsofsection12A(1)(b)makingitineligibleforexemptionu/s11. ItisnoticedfromdetailsfiledbytheappellantthatasfarasA.yr2020-21isconcerned, theappellanthasproperlyfilledindetailsofregistrationu/s12AinthereturnofIncome andalsofiledform10Bintime.Henceexemptionu/s11wasallowedtotheappellantfor thatyear.ButfortheyearunderconsiderationSincetheappellantfailedtosatisfy provisionsofsection12A(1)(b),denialofexemptionu/s11ofRs.85,611/-vide143(1) dated27.10.2022byAO,CPCisupheld.Thusgroundsofappealnumbering1to4ofthe appellantaredismissed. 5.Beingaggrievedbytheorderoftheld.CIT(A),theassesseeisinappeal beforeus. ITAno.555/AHD/2023 Asstt.Year2021-2022 3 6.Theld.ARbeforeusfiledapaperbookrunningfrompage1to42and submittedthattherequirementoffilingauditreportinForm10Bisproceduralin natureandthereforeexemptionclaimedbytheassesseeu/s11cannotbedenied. Theld.ARinsupportofhiscontentionreliedonthefollowingorders: i.HariGyanPracharakTrustvs.DCITvideITANo.245/Ahd/2021orderdated16- 06-2023. iiShriVishaOswalJainSewaSamajvs.ITOvideITANo.59/Ahd/2022orderdated 11-10-2023 6.1Theld.ARfurthersubmittedthattheCBDTCircularNo.16/2020dated19 th July,2022hasalsodelegatedthepowertothePrincipal Commissioner/CommissionerofIncomeTaxtoadmittheapplicationforthe condonationofdelayu/s119(2)oftheActwithrespecttothedelayinfilingForm 10Bforassessmentyear2018-19andsubsequentassessmentyearsonmerit. Accordingly,itwascontendedbytheld.ARthatthedelayshouldbecondoned, andassesseeshouldbegrantedtheexemptionu/s11oftheAct. 7.Ontheotherhand,theld.DRcontendedthattheassesseeforcondoning thedelayinfilingForm10BoftheActwastomoveanapplicationbeforethe concernedIncomeTaxAuthoritiesinpursuancetotheCBDTCircularwhowere authorizedtocondonethedelayafterconsideringthemeritofthecase.Assuch, theld.ARcannottakeshelterofCBDTCirculardiscussedaboveintheappeal pendingbeforetheITAT. 8.Theld.A.R.inhisrejoindersubmittedthatonceitwasfoundthatthe TribunalhastakenaviewafterreferringthejudgmentofHon’bleGujaratHigh Courtinthecasesdiscussedabove,theassesseedidnotprefertoadoptthe alternateremedyavailabletoit. 9.Wehaveheardtherivalcontentionsofboththepartiesandperusedthe materialsavailableonrecord.Attheoutset,wenotethatthisTribunalinidentical ITAno.555/AHD/2023 Asstt.Year2021-2022 4 factsandcircumstancesinthecaseofHariGyanPracharakTrustvs.DCITvide ITANo.245/Ahd/2021orderdated16-06-2023hasdecidedtheissueinfavourof theassesseebyobservingasunder: “7.Wehavecarefullyconsideredtheorderpassedbytheauthoritiesbelowandthe judgmentpassedbytheHon’bleJurisdictionalHighCourtincaseofAssociationofIndian PanelboardManufacturer(supra)ontheissueinvolved.Whilepassingorderinfavourof theassessee,theHon'bleJurisdictionalHighCourthasbeenpleasedtoobserveasfollows: “5.6TheTribunalfurthercommittedanerrorinappreciatingtheimportofSection 1192(b)oftheActinasmuchastheapplicationcontemplatedhereunderisonlya remedyfortheassesseewhichcouldnotbesaidtobecompulsorilyresortedtoby theassessee.ThecircularNo7/18dated20.12.2018issuedunderSection119of theActcouldnotbe,thereforesaidtohavetakenawaytheappellateremedy. 5.7ThetribunalmisdirecteditselfinyetanotherwaywhenitobservedthatThe FinanceAct,2015witheffectfrom1.4.2016,thatisfromassessmentyear2016-17 changedthelegalposition.Thereisnosuchchangewhichcouldbesaidtohave alteredthelegalposition.Theonlychangeiswithregardtocompulsoryfilingof auditreportinForm10Binelectronicallyformwhichismademandatoryunder Rule12(2)oftheIncomeTaxRules,1962butthereisnochangewithregardto thesubstantivelawaboutflingofauditreportasstatedabove. 6.Themootaspectthatcentresaroundtotherequirementoftheavailabilityof theauditreportwhentheassessmentwasundertakenbytheAssessingOfficer eventhoughthesamemaynothavebeenfiledalongwiththereturnofincome. Filingofauditreportheldtobesubstantiverequirementbutnotthemodeand stageoffiling,whichisprocedural.OncetheauditreportinForm12Bisfiledtobe availablewiththeAssessingOfficerbeforeassessmentproceedingstakeplace,the requirementoflawissatisfied.InthatviewtheIncomeTaxTribunalwasnot justifiedindismissingtheappealoftheassessee. 6.1Theappellantassesseehastobeheldtobeeligibleandentitledtoexemptions underSection11(1)and112)oftheActandtheallegedgroundofnon-filingof auditreportalongwithreturnofincomewhichwasatthebestproceduralomission, couldnevertoanimpedimentinlawinclaimingtheexemption. 6.2Accordinglythesubstantialquestionsoflawhavetobedecidedinfavorofthe appellant. 7.Theyareaccordinglydecided.Theappealisallowed.” 8.InviewoftheratiolaiddownbytheHon'bleJurisdictionalHighCourtholdingthat nonfilingofAuditReportalongwithreturnofincomeisaproceduralomissionandcannot beanimpedimentinlawinclaimingtheexemption,weallowthisappealcondoningthe delayinfilingtheAuditReportinFormNo.10B.However,wealsouponcondoningthe delay,restorethemattertothefileoftheLd.CIT(A)topassorderinregardtothe exemptionclaimedbytheassesseestrictlyinaccordancewithlaw. 9.Intheresult,assessee'sappealisallowedforstatisticalpurposes.” ITAno.555/AHD/2023 Asstt.Year2021-2022 5 9.1RespectfullyfollowingtheorderofCo-ordinateBenchasdiscussedabove, wecondonethedelayandrestorethemattertothefileofld.CIT(A)toallow exemptionu/s11oftheActtotheassesseeaspertheprovisionsoflaw.Hence, thegroundsofappealoftheassesseeareallowedforstatisticalpurposes. 10.Intheresult,theappealoftheassesseeisallowedforstatisticalpurposes. OrderpronouncedintheCourton03/01/2024atAhmedabad. Sd/-Sd/--/-/- (TRSENTHILKUMAR)(WASEEMAHMED) JUICIALMEMBERACCOUNTANTMEMBER (TrueCopy) Ahmedabad;Dated03/01/2024 Manish
