Income Tax Officer, Exemption, Ward, Kolhapur, Kolhapur V. Shri Shivlingeshwar Shikshan Sanstha, Sangli

ITA 782/PUN/2022

AI Insights

The case involves an appeal by the Revenue against the order of the ld.Commissioner of Income Tax (Appeals) [CIT(A)], which had allowed the exemption under section 11 of the Income Tax Act, 1961, to Shri Shivlingeshwar Shikshan Sanstha for the assessment year 2017-18. The Revenue contested the CIT(A)'s decision on grounds that the assessee had not timely filed Form No. 10B and had not sought condonation of delay under section 119(2)(b) of the Act. The Tribunal found that the delay in filing Form No. 10B was later condoned by the ld.CIT(Exemption), rendering the Revenue's appeal infructuous.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134343 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 28-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 25-10-2022
• Other Referred Cases: Principal Commissioner of Income Tax vs. Wipro Limited
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Benefit of exemption; Condonation of delay
• Section: 12; 154; 11; 139; 12A; 119(2)(b); 10B; 139(1)

Judgement Text

आयकर अपीलीय अिधकरण “बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.782/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2017-18 The Income Tax Officer, Exemption Ward, Kolhapur. Vs Shri Shivlingeshwar Shikshan Sanstha, A/p.Sankh, Tal. Jath, Dist. Sangli, Maharashtra – 416412. PAN: AAHTS 4944 G Appellant / Revenue Respondent / Assessee Cross Objection No.02/PUN/2023 (arising out of ITA No.782/PUN/2022) Assessment Year : 2017-18 Shri Shivlingeshwar Shikshan Sanstha, A/p.Sankh, Tal. Jath, Dist. Sangli, Maharashtra – 416412. PAN: AAHTS 4944 G Vs The Income Tax Officer, Exemption Ward, Kolhapur. Appellant / Revenue Respondent / Assessee Assessee by Smt. Parul Kulkarani – AR Revenue by Shri M.G.Jasnani – DR Date of hearing 01/03/2023 Date of pronouncement 03/03/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the Revenue against the order of ld.Commissioner of Income Tax(Appeal)[NFAC], Delhi dated 31.08.2022 for A.Y.2017-18 emanating from the order under section ITA No.782/PUN/2022 Shri Shivlingeshwar Shikshan Sanstha [R] 2 154 of the Act, dated 17.08.2021. The Revenue has raised the following grounds of appeal: “1. On facts and circumstance of the case, the Ld. Commissioner of Income Tax (Appeals) [hereinafter CIT(A) in short] erred in allowing the benefit of exemption u/s. 11 of the Income Tax Act, 1961 [hereinafter I.T. Act in short] to. the assessee, without appreciating the fact that the Jurisdictional Assessing Officer had rightly rejected the assessee’s rectification as per Rule 17 of the I.T. Rules,1962 and CBDT Circular No. 10/2019 dated 22.05.2019, since the assessee had neither uploaded its Form No. 10B for A.Y. 2017-18 within the time allowed u/s. 139 of the Act nor had it applied for condonation of delay u/s. 119(2)(b) of the Act for the delay in filing of Form No. 10B for A.Y. 2017-18. 2. On facts and circumstance of the case, the Ld. CIT(A) erred in allowing the benefit of exemption u/s. 11 of the I.T. Act to the assessee by holding that filing of Audit Report is merely a procedural formality, without appreciating the fact that as per the provisions of Section 12A of the Act, the failure to furnish such report in the prescribed form along with the return of income results in disentitlement of the trust from claiming exemption u/s. 11 & 12 of the Act. 3. On facts and circumstance of the case, the Ld. CIT(A) erred in not appreciating the ratio laid down by the Honble Supreme Court vide its decision in the case of Principal Commissioner of Income Tax vs. Wipro Limited, Civil Appeal No. 1449 of 2022 dated 11.07.2022 [140 Taxmann.com 223 (SC)], wherein it has been held that, “for claiming the benefit under section 10B(8) of the I.T. Act, the twin conditions of furnishing a declaration before the assessing officer and that too before the due date of filing the original return of income under section 139(1) are to satisfied and ITA No.782/PUN/2022 Shri Shivlingeshwar Shikshan Sanstha [R] 3 both are mandatorily to be complied with”. 4. On facts and circumstance of the case, the Ld. CIT(A) erred in not appreciating the ratio laid down by the Hon hie Supreme Court vide its decision in the case of Principal Commissioner of Income Tax vs. Wipro Limited (Supra) that the exemption provisions should be construed strictly and the requirements for claiming exemption, even if procedural, should be followed in the letter and spirit. 5. The appellant craves leave to add, alter, amend or omit any or all the grounds of appeal.” Brief Facts of the Case : 2. In this case, the assessee filed return of income electronically. The ADIT(CPC) disallowed assessee’s claim of exemption under section 11 on the ground of non-submission of Form No.10B. The assessee then filed rectification application under section 154 which was rejected. Aggrieved by the order of the AO, the assessee filed appeal before the ld.CIT(A). The ld.CIT(A) allowed assessee’s appeal on the ground that assessee had filed Form No.10B on 12.08.2019. Therefore, the ld.CIT(A) held that defect has been removed by the assessee. The ld.CIT(A) relied on various case laws and allowed the appeal of the assessee. 3. Aggrieved by the same, the Revenue filed appeal before this Tribunal. ITA No.782/PUN/2022 Shri Shivlingeshwar Shikshan Sanstha [R] 4 Findings & Discussions : 4. The ld.Authorised Representative(ld.AR) of the assessee submitted that ld.CIT(Exemption) has condoned the delay in filing Form No.10B of the Act. The ld.AR submitted copy of the condonation of the order dated 06.02.2023 for A.Y.2017-18 passed by the ld.CIT(Exemption), Pune. The ld.Departmental Representative(ld.DR) for the Revenue accepted the fact that the ld.CIT(Exemption) has condoned the delay in filing Form No.10B. In these facts and circumstances of the case, we are of the opinion that appeal of the Revenue become infructuous. Thus, we uphold the order of ld.CIT(A) and dismiss the appeal of the Revenue. 5. In the result, appeal of the Revenue is dismissed. Cross Objection Appeal No.02/PUN/2022 : 6. Since we have already decided the appeal of the Revenue in ITA No.782/PUN/2022 and we note that quantum appeal is involved in this appeal of the assessee, hence, our observations made in ITA No.782/PUN/2022 for A.Y. 2017-18 shall apply mutatis mutandis to the aforesaid appeal. Accordingly, grounds of appeal raised by the assessee in this Cross Objection Appeal No.02/PUN/2022 are allowed. 7. In the result, Cross Objection appeal of the assessee is allowed. ITA No.782/PUN/2022 Shri Shivlingeshwar Shikshan Sanstha [R] 5 8. To sum up, appeal of the Revenue is Dismissed and Cross Objection Appeal of the assessee is Allowed. Order pronounced in the open Court on 3 rd March, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 3 rd March, 2023/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.