Income Tax Officer (Exemption), Ward- Kolhapur, Kolhapur V. Dakshin Bharat Jain Sabha, Sangli

ITA 607/PUN/2023

AI Insights

The case involves the Dakshin Bharat Jain Sabha, a trust registered under section 12A of the Income-tax Act, 1961, which did not file Form No.10B timely with its return for the assessment year 2017-18. The Centralized Processing Centre (CPC) initially disallowed the claim for exemption under section 11 due to the late filing of Form No.10B. The CIT(A) upheld this decision but directed the AO to tax only the total income of the trust instead of the gross receipts, which was contested by the Revenue in the Tribunal. The Tribunal's decision supported the CIT(A)'s directive, emphasizing the correct application of tax on total income in the absence of timely filed exemption claims.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137720 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 07-09-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 21-05-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘A’ PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं. / ITA No.607/PUN/2023 नधा रण वष / Assessment Year : 2017-18 ITO (Exemption) Ward, Kolhapur Vs. Dakshin Bharat Jain Sabha, 37, Vakhar Bhag, High School Road, Mahaveer Nagar, Sangli – 416 416 Maharashtra PAN : AAATD1154G Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the Revenue is directed against the order dated 23-03-2023 passed by the CIT(A) in National Faceless Appeal Centre (NFAC), Delhi in relation to the assessment year 2017-18. 2. The only grievance of the Revenue in this appeal is against the direction of the ld. CIT(A) to the Assessing Officer (AO) for taxing only the total income of the assessee as against the gross receipts. 3. Briefly stated, the facts of the case are that the assessee trust is registered u/s.12A of the Income-tax Act, 1961 (hereinafter also Assessee by Shri Pramod S. Shingte Revenue by Shri Ramnath P. Murkunde Date of hearing 08-09-2023 Date of pronouncement 11-09-2023 ITA No.607/PUN/2023 Dakshin Bharat Jain Sabha 2 called ‘the Act’). It did not file Form No.10B along with its return of income for the year under consideration. The Centralized Processing Centre (CPC) completed the assessment u/s.143(1), disallowing the claim of exemption u/s 11 of the Act. The assessee, thereafter, filed Form No.10B and moved application for rectification u/s.154 of the Act. The CPC dismissed the application u/s.154. The assessee preferred appeal before the ld. CIT(A), who held that the application filed by the assessee was rightly rejected because in the absence of the uploading Form No.10B on time, it was not entitled to exemption. He, however, directed the AO to tax only the total income of the assessee as against the gross receipts which was subjected to tax. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. Having heard the rival submissions and gone through the relevant material on record, it is seen that the order of the ld. CIT(A) has attained finality qua the assessee’s grievance inasmuch as there is no appeal anent to the disallowance of claim of exemption u/s.11. Thus, the only issue which survives in the Revenue’s appeal is about taxing the gross receipts or total income. If the necessary form is filed on time, the assessee, subject to the other provisions, becomes entitled to exemption. In case the exemption is denied, it becomes a case of normal assessment, in which only the total ITA No.607/PUN/2023 Dakshin Bharat Jain Sabha 3 income can be taxed and not the gross receipts. In the instant case, the Department, after rejecting the claim for exemption, charged to tax the gross receipts. The ld. CIT(A), in our considered opinion, was fully justified in directing the AO to tax only the total income of the assessee and not the gross receipts. We, therefore, countenance the same. 5. In the result, the appeal is dismissed. Order pronounced in the Open Court on 11 th September, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 11 th September, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. 3. थ / The respondent The Pr.CIT concerned 4. DR, ITAT, ‘A’ Bench, Pune 5. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.607/PUN/2023 Dakshin Bharat Jain Sabha 4 Date 1. Draft dictated on 08-09-2023 Sr.PS 2. Draft placed before author 08-09-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *