Sri Narsinha Saraswati Swami Datta Dev Sansthan, Kolhapur V. Deputy Commissioner of Income-Tax, CPC, Bengaluru

ITA 676/PUN/2022

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The case involves Sri Narsinha Saraswati Swami Datta Dev Sansthan, a trust, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment year 2017-18. The primary issue was the disallowance of a claimed accumulation/set apart of Rs.60,00,000 for specified purposes due to the non-filing of Form No. 10 online within the due date. The Central Processing Centre (CPC), Bangalore, had disallowed this claim and added the amount to the total income, denying exemption under section 11 of the Income Tax Act. The Tribunal, after considering the submissions and the CBDT Circular No. 2/2020, which condoned the delay in filing Form No. 10B for the relevant assessment years, ruled in favor of the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132927 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-01-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 11-09-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 11; 139; 10B; 143(1)

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.676/PUN/2022 धििाारण वर्ा / Assessment Year : 2017-18 Sri Narsinha Saraswati Swami Datta Dev Sansthan, Narsobawadi 416 104, Maharshtra PAN : AADTS1514L ......अपीलार्थी / Appellant बिाम / V/s. Deputy Commissioner of Income Tax, CPC, Bengaluru ......प्रत्यर्थी / Respondent Assessee by : N O N E Revenue by : Shri Ramnath P. Murkunde सुनवाई की तारीख / Date of Hearing : 17-01-2023 घोषणा की तारीख / Date of Pronouncement : 20-01-2023 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 29-07-2022 passed by the National Faceless Appeal Centre (“NFAC”), Delhi for assessment year 2017-18. 2. We find no representation on behalf of the assessee nor any application filed seeking adjournment. Thus, the assessee called absent and set ex-parte. Therefore, we proceed to dispose of the appeal by hearing the ld. DR and perusing the material available on record. 2 ITA No.676/PUN/2022, A.Y. 2017-18 3. The assessee raised seven grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(A), NFAC, Delhi justified in confirming the disallowance made by the CPC, Bangalore on account of failure to furnish Form No. 10 online within due date in the facts and circumstances of the case. 4. The assessee filed return of income on 15-03-2018 u/s. 139 of the Act. The assessee claimed accumulation/set apart of Rs.60,00,000/- for specified purposes. The said amount was disallowed and added to the total income for not e-filing Form No. 10 within due date, consequently, exemption u/s. 11 of the Act was denied by the CPC, Bangalore vide its intimation order dated 16-03-2019. 5. As aggrieved by the intimation u/s. 143(1) of the Act passed by the CPC, Bangalore, the assessee filed an appeal before the CIT(A), NFAC, Delhi. The assessee filed written submissions in support of its claim of allowance of accumulation of funds u/s. 11(2) of the Act to the tune of Rs.60,00,000/- before the CIT(A). It is noted from the impugned order as well as from intimation u/s. 143(1) of the Act, the claim of exemption u/s. 11 of the Act was denied for failure to furnish statement under Form No. 10. We note that Clause (a) of sub-section (2) of section 11 of the Act requires furnishing of statement in the prescribed form and manner to the AO stating the purpose for which the income is being accumulated or set apart. Admittedly, the CPC, Bangalore denied the exemption for not e- filing Form No. 10 within due date which is evident from error description in page 7 of the intimation u/s. 143(1) of the Act. 6. The ld. DR drew our attention to Circular No. 2/2020 dated 03-01- 2020 passed by the CBDT and submits that the Board/field authorities received many representations stating the difficulty in filing Form No. 10B 3 ITA No.676/PUN/2022, A.Y. 2017-18 along with the return of income for A.Ys. 2016-17 and 2017-18. He submits that the said difficulties were in the nature of technical glitches etc..., and considering the same the CBDT has issued the said circular with a view to expedite the disposal of application filed by the trust or institution for condoning the delay in filing Form No. 10B. The ld. DR placed on record the said circular, wherein, it is noted the delay in filing of Form No. 10B for A.Ys. 2016-17 and 2017-18 in all such cases is condoned. In the present case, the dispute is only with regard to non-filing of Form No. 10B online along with the return of income for A.Y. 2017-18. Therefore, in our opinion, the delay in filing Form No. 10B is stands condoned in view of Circular No. 2/2020 (supra). Therefore, the assessee is entitled to get exemption u/s. 11 of the Act. Thus, the order of CIT(A) is not justified and it is set aside, the grounds raised by the assessee are allowed. 7. In the result, the appeal of assessee is allowed. Order pronounced in the open court on 20 th January, 2023. Sd/- Sd/- (R.S. Syal) (S.S. Viswanethra Ravi) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 20 th January, 2023. रदव आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A) concerned. 4. The Pr. CIT concerned. 5. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune