The Poona Diocesan Educational Society, Pune V. Assistant Director of Income-Tax, CPC, , Bengaluru

ITA 705/PUN/2022

AI Insights

The case involves The Poona Diocesan Educational Society, a charitable trust, which appealed against the order of the National Faceless Appeal Centre (NFAC) that confirmed the denial of exemption under section 11 of the Income Tax Act, 1961. The denial was initially by the Assessing Officer due to the late filing of the Audit Report in Form No.10B. The Tribunal found that although the form was filed late, it was available to the CPC when processing the return and thus directed a reconsideration of the exemption claim.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137451 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 28-03-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 20-09-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 11; 12A; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं. / ITA No.705/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2020-21 The Poona Diocesan Educational Society, Bishop’s House, 1-B, Prince of Wales Drive, Pune- 411001. PAN : AAATT1494M Vs. ACIT, CPC, Bangaluru. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 25.07.2022 for the assessment year 2020-21. 2. Briefly, the facts of the case are that the appellant is a charitable trust duly registered u/s 12A of the Income Tax Act, 1961 (‘the Act’). The Return of Income for the assessment year 2020-21 was filed on 15.02.2021 declaring Rs.Nil income after claiming exemption u/s 11 of the Act. Against the said return of income, an intimation u/s 143(1) was issued on 24.12.2021 denying the claim Assessee by : None Revenue by : Shri Sardar Singh Meena Date of hearing : 29.03.2023 Date of pronouncement : 29.03.2023 ITA No.705/PUN/2022 2 for exemption u/s 11 of the Act on the ground that the Audit Report in Form No.10B was not filed within the prescribed period. 3. Being aggrieved, an appeal was filed before the NFAC, who vide impugned order confirmed the action of the Assessing Officer, as the CIT(A) has no power to condone the delay in filing the Form No.10B. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. When the matter was called on, none appeared on behalf of the appellant-assessee despite due service of notice of hearing. 6. We heard the ld. CIT-DR and perused the material on record. We have carefully gone through the impugned order and find that admittedly in the present case Form No.10B was filed along with the return of income, but beyond the due date for filing of Form No.10B. The Form No.10B was very much available with the CPC when the return of income was processed by it. It is settled position in law that the statutory Rules cannot override the provisions of the Act. Therefore, in view of above, the principle of construction of the provisions of Rules cannot override the provisions for Statute; we direct the CPC to consider the Form No.10B and then rectify the intimation accordingly. ITA No.705/PUN/2022 3 7. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 29 th day of March, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 29 th March, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.