PARLE HINDU DEVALAYA MANDAL, MUMBAI V. DCIT CPC, BANGALORE

ITA 766/MUM/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3581 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 11-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH DESHPANDE
• Assessee Lawyers: RACHNA GURNANI
• Keywords: Rectification of order; Charitable institution
• Section: 154; 139; 12AA; 143(1); 139(1); 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHR I G. MANJUNATH A , ACCOUNTANT MEMBER ITA NO. 766 / MUM . /201 9 ( ASSESSMENT YEAR : 20 15 16 ) PARLE HINDU DEVALAYA MANDAL 1, SHREE PARLESHWAR MANDIR MAHATMA GANDHI ROAD VILE PARLE (E), MUMBAI 400 057 PAN AAATP0047J . APPELLANT V/S DY. COMMISSIONER OF INCOME TAX CPC, BENGALURU . RESPONDENT REVENUE BY : S HRI SAURABH DESHPANDE ASSESSEE BY : MS. RACHNA GURNANI DATE OF HEARING 04 .0 2 .2020 DATE OF ORDER 04.03.2020 O R D E R PER SAKTIJIT DEY. J.M. THE CAPTIONED APPEAL HAS BEEN FILED BY THE ASSESSEE CHALLENGING THE ORDER DATED 1 8 TH DEC EMBER 2018 , PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 1 , MUMBAI, PERTAINING TO THE ASSESSMENT YEAR 20 15 16 . 2. THE DISPUTE IN THE PRESENT APPEAL IS CONFINED TO DENIAL OF ASSESSEES CLAIM OF EXEMPTION UNDER SECTION 11(2) OF THE INCOME TAX ACT, 1961 (FOR SHORT 'THE ACT' ). 2 PARLE HINDU DEVALAYA MANDAL 3. BRIEF FACTS ARE, THE ASSESSEE IS A CHARITABLE TRUST AND HAS BEEN GRAN TED REGISTRATION UNDER SECTION 12AA OF THE ACT. FOR THE ASSESSMENT YEAR UNDER DISPUTE, THE ASSESSEE HAD FILED ITS RETURN OF INCOME ON 28 TH SEPTEMBER 2015, ELECTRONICALLY DECLARING NIL INCOME AFTER CLAIMING EXEMPTION UNDER SECTION 11(2) OF THE ACT FOR AN AM OUNT OF ` 22,27,410. WHILE PROCESSING THE RETURN OF INCOME FILED BY THE ASSESSEE, THE CENTRAL PROCESSING CENTRE (CPC) DENIED ASSESSEES CLAIM OF EXEMPTION UNDER SECTION 11(2 ) OF THE ACT SINCE THE DECLARATION IN FORM NO.10, WAS NOT FILED ELECTRONICALLY ALONG WITH THE RETURN OF INCOME. AGAINST THE INTIMATION ISSUED UNDER SECT ION 143(1) OF THE ACT BY THE CPC , THE ASSESSEE MOVED AN APPLICATION UNDER SECTION 154 OF THE ACT SEEKING RECTIFICATION OF MISTAKE ON THE GROUND THAT AS PER EXISTING PROVISIONS APPLICA BLE TO ASSESSMENT YEAR 2015 16, THERE WAS NO REQUIREMENT OF FILING FORM NO.10 ELECTRONICALLY. IT WAS SUBMITTED BY THE ASSESSEE , SINCE FORM NO.10, WAS FURNISHED MANUALLY BEFORE THE ASSESSING OFFICER ON THE DUE DATE OF RETURN OF INCOME I.E., 28 TH SEPTEMBER 2 015, THE CLAIM OF EXEMPTION UNDER SECTION 11(2) OF THE ACT HAS TO BE ALLOWED. THE APPLICATION FILED UNDER SECTION 154 OF THE ACT WAS REJECTED ON THE GROUND THAT THERE IS NO MISTAKE APPARENT ON THE FACE OF RECORD REQUIRING RECTIFICATION. AGAINST THE ORDER P ASSED UNDER SECTION 154 OF THE ACT, THE ASSESSEE PREFERRED APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. 3 PARLE HINDU DEVALAYA MANDAL 4. BEFORE THE LEARNED COMMISSIONER (APPEALS) ALSO, IT WAS SUBMITTED BY THE ASSESSEE THAT FILING OF FORM NO.10, ELECTRONICALLY WAS MADE MANDATORY BY VIRTUE OF AMENDMENT MADE TO RULE 17, VIDE CBDT NOTIFICATION DATED 14 TH JANUARY 2016, AND WAS MADE EFFECTIVE FROM 1 ST APRIL 2016. THEREFORE, PRIOR TO THE AMENDMENT MADE TO RULE 17, THERE WAS NO REQUIREMENT FOR FILING OF FORM NO.10 ELECTRONICALLY . THE LEARNED COMM ISSIONER (APPEALS), HOWEVER, DID NOT ACCEPT THE CONTENTION OF THE ASSESSEE AND DISMISS ED THE APPEAL. 5. REITERATING THE STAND TAKEN BEFORE LEARNED COMMISSIONER (APPEALS), THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED , MANDATORY FILING OF FORM NO.10 ELECTRO NICALLY BECOME OPERATIVE FROM 1 ST APRIL 2016. SHE SUBMITTED , PRIOR TO THE AMENDMENT MADE TO RULE 17, BY CBDT NOTIFICATION DATED 14 TH JANUARY 2016, THERE WAS NO REQUIREMENT OF FILING FORM NO.10, ELECTRONICALLY. SHE SUBMITTED , SINCE THE ASSESSEE HAS FILED FO RM NO.10, MANUALLY BEFORE THE ASSESSING OFFICER WITHIN THE DUE DATE OF FILING OF RETURN OF INCOME FOR THE IMPUGNED ASSESSMENT YEAR, ASSESSEES CLAIM OF EXEMPTION UNDER SECTION 11(2) OF THE ACT CANNOT BE REJECTED. 6. THE LEARNED DEPARTMENTAL REPRESENTATIVE R ELIED UPON THE OBSERVATIONS OF LEARNED COMMISSIONER (APPEALS). 4 PARLE HINDU DEVALAYA MANDAL 7. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. UNDISPUTEDLY, ASSESSEES CLAIM OF EXEMPTION UNDER SECTION 11(2) OF THE ACT HAS BEEN REJECTED ONLY DUE TO NON FILI NG OF DECLARATION IN FORM NO.10 IN ELECTRONIC MODE. HOWEVER, THE FACTS ON RECORD CLEARLY REVEAL THAT THE ASSESSEE HAS FILED FORM NO.10, MANUALLY BEFORE THE ASSESSING OFFICER ON 28 TH SEPTMBER 2015, THE VERY SAME DATE THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2015 16, WAS FILED BY THE ASSESSEE. ON A PERUSAL OF RULE 17, AS IT EXISTED PRIOR TO ITS AMENDMENT/SUBSTITUTION BY INCOME TAX (1 ST AMENDMENT) RULE, 2016, W.E.F. 1 ST APRIL 2016, THE PROVISION ONLY REQUIRE D FILING OF FORM NO.10, BEFORE THE EXPIRY OF THE TIME ALLOWED UNDER SUB SECTION (1) OF SECTION 139 OF THE ACT FOR FURNISHING RETURN OF INCOME. ONLY W.E.F. 1 ST APRIL 2016, AMENDED RULE 17 PROVIDED FOR FILING FORM NO.10 ELECTRONICALLY BEFORE THE DUE DATE OF RETURN OF INCOME UNDER SECTION 139(1) OF THE ACT. THAT BEING THE CASE, ASSESSEES CLAIM OF EXEMPTION UNDER SECTION 11(2) OF THE ACT CANNOT BE REJECTED ONLY FOR THE REA S ON THAT FORM NO.10, WAS NOT FILED ELECTRONICALLY. IN VIEW OF THE AFORESAID, WE RESTORE THE ISSUE TO THE ASSESSING OFFICER WITH A DIRECTION TO VERIFY FORM NO.10, FILED BY THE AS SESSEE MANUALLY, AS STATED BY THE LEARNED COUNSEL FOR THE ASSESSEE AND ALLOW ASSESSEES CLAIM OF EXEMPTION UNDER SECTION 11(2) OF THE ACT. GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSE. 5 PARLE HINDU DEVALAYA MANDAL 8. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN C OURT ON 04.03.2020 SD/ - G. MANJUNATH A ACCOUNTANT MEMBER SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 04.03.2020 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY ASSISTANT REGISTRAR ITAT, MUMBAI