Hanuman Seva Charitable Trust, Kolkata V. ADIT, ITD, Bengaluru

ITA 727/KOL/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1163 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Appeal Filed On: 07-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Reasonable cause
• Section: 12; 11; 12AA; 143(1); 119

Judgement Text

ITA No. 727/KOL/2024 (A.Y. 2020-2021) Hanuman Seva Charitable Trust 1 THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Rajesh Kumar, Accountant Member I.T.A. No. 727/KOL/2024 Assessment Year: 2020-2021 Hanuman Seva Charitable Trust,...............Appellant 249/H, New G.T. Road, Liluah, Howrah-711204 [PAN:AAATH8190A] -Vs.- Assistant Director of Income Tax,.............Respondent Centralized Processing Centre, Income Tax Department, Bengaluru, Post Bag No. 2, Electronic City Post Office, Bengaluru-560500, Karnataka Appearances by: Shri N. Kaushik, A.R., appeared on behalf of the assessee Shri Arun Kumar Meena, Addl. CIT, Sr. D.R. appeared on behalf of the Revenue Date of concluding the hearing: July 02, 2024 Date of pronouncing the order: July 04, 2024 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals) dated 29 th January, 2024 passed for assessment year 2020-21. ITA No. 727/KOL/2024 (A.Y. 2020-2021) Hanuman Seva Charitable Trust 2 2. The Registry has pointed out that the appeal is time barred by 10 days. In order to explain the delay, the assessee has filed an affidavit of Shri Vikash Nangalia of Hanuman Seva Charitable Trust. In this affidavit, it has been deposed that he was advised by the Tax Consultant to file a rectification application under section 154 of the Income Tax Act and the Trust was exploring that remedy before filing the appeal. This step made the appeal time barred by 10 days. 3. On due consideration of the above facts and circumstances, we find that assessee was prohibited by a reasonable cause in filing the appeal after expiry of limitation before the Tribunal. We condone the delay and proceed to decide the appeal on merit. 4. The grievance of the assessee is that the CPC, Bengaluru has erred in making a disallowance of Rs.58,11,041/-. It has further submitted that this disallowance has been confirmed by the ld. CIT(Appeals). 5. The ld. Counsel for the assessee submitted that the assessee- Trust was enacted on 15 th October, 2009. It was granted registration under section 12AA on 22.03.2013. It has filed its return of income electronically on 29.12.2020. In the return, the Tax Consultant has wrongly mentioned the status of the assessee- Trust as a “Company”. Due to this, the CPC has made adjustment and did not grant the benefit of Sections 11 & 12 of the Income Tax Act. ITA No. 727/KOL/2024 (A.Y. 2020-2021) Hanuman Seva Charitable Trust 3 6. Dissatisfied with this, the assessee carried the matter in appeal. It has appraised the ld. CIT(Appeals) about the error committed by the assessee while filing the return. The ld. 1 st Appellate Authority did not entertain this ground of appeal and observed that if status of the assessee was wrongly mentioned as a ‘Company’, then CPC is competent to make adjustment. The ld. CIT(Appeals) discussed the jurisprudence of 143(1) and further observed that the assessee should revise the return and in case, the time limit to revise has gone, then should approach the Board under section 119 of the Income Tax Act. 7. With the assistance of ld. Representatives, we have gone through the record carefully. It is pertinent to note that once a Trust is registered under section 12AA, then its status should be updated along with PAN data. If an assessee has committed an error, then that should have been first processed and proposed disallowance ought to be intimated to the assessee while processing the return under section 143(1) of the Income Tax Act. The ld. CIT(Appeals), as an Appellate Authority, was duly competent to rectify any error crept in the record, even at the instance of assessee. The rectification can be made on the application of the assessee and it is not confined to the errors committed by the ld. Assessing Officer only. Therefore, we are of the view that the impugned orders are not sustainable. We set aside both the impugned orders. We relegate this issue to the file of ld. Assessing Officer for adjudication. The ld. Assessing Officer shall grant an opportunity to the assessee to explain its status and ITA No. 727/KOL/2024 (A.Y. 2020-2021) Hanuman Seva Charitable Trust 4 then after considering the registration granted to it decide whether benefit of Sections 11 and 12 is admissible to the assessee or not. 8. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 4/07/2024. Sd/- Sd/- (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 4 th day of July, 2024 Copies to :(1) Hanuman Seva Charitable Trust, 249/H, New G.T. Road, Liluah, Howrah-711204 (2) Assistant Director of Income Tax, Centralized Processing Centre, Income Tax Department, Bengaluru, Post Bag No. 2, Electronic City Post Office, Bengaluru-560500, Karnataka (3) ADDL/JCIT(A)-7, Mumbai, (4) CIT- , Kolkata (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.