Jan Shiksha Samiti, Farah V. Jurisdentiol Assessing Officer Ward Exemtion, Agra

ITA 96/AGR/2021

AI Insights

The case involves Jan Shiksha Samiti, a registered Charitable Society under Section 12A of the Income Tax Act, 1961, appealing against the order of the CIT (Appeals)/ National Faceless Appeal Centre (NFAC) which pertained to the assessment year 2017-18. The primary contention of the assessee was the incorrect assessment of income as per the intimation under section 143(1), which was claimed to be erroneous as the society is eligible for exemption under section 11 of the Act. The CIT (A) had dismissed the appeal without considering the explanations provided by the assessee regarding the error in stating the income under the incorrect schedule of the ITR filed. The Income Tax Appellate Tribunal (ITAT) found merit in the assessee's request for a revision opportunity and remanded the case back to the CIT (A) for a re-evaluation post-revision of the return.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113594 (ITAT-AGRA)
• Duration Of Justice: 2 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 11-10-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 10-10-2021
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revised return
• Section: 11; 12A; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (AGRA BENCH ‘DB’ : NEW DELHI) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER and SHRI ANUBHAV SHARMA, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCE) ITA No.96/AGR/2021 (ASSESSMENT YEAR : 2017-18) Jan Shiksha Samiti, vs. CIT (Appeals), NFAC, 1, Deen Dayal Dhan, Delhi. Nagla Chandrabhan, Farah – 281 122 (Uttar Pradesh). (PAN : AAATJ3496R) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Sahib P Satsangee, CA REVENUE BY : Shri Shailendra Srivastava, Sr. DR Date of Hearing : 12.10.2023 Date of Order : 17.10.2023 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal filed by the assessee is directed against the order of ld. CIT (Appeals)/ National Faceless Appeal Centre (NFAC) dated 27.08.2021 pertaining to assessment year 2017-18. 2. Grounds of appeal taken by the assessee read as under :- “1. Because the Authorities below have erred both on facts and in law in assessing the income of the assessee as per the intimation under section 143(1) at Rs.1,19,67,503 without appreciating that assessee is a registered Charitable Society under Section 12A of the I.T. Act, 1961 (herein after referred to as Act), eligible for exemption under .section 11 of the Act and ITA No.96/AGR./2021 2 thereby his income ought to have been NIL under the provisions of law. 2. Because the Authorities below have erred both on facts and in law in not allowing the application of the income for the Charitable purposes in India under Revenue Account Rs.1,11,91,483 and Capital Account Rs.1,01,242 totaling to Rs.1,12,92,975 in the impugned year reported in the ITR-7 filed. 3. Because the learned CIT (Appeals) NFAC has erred both on facts and in law in dismissing the appeal of the assessee without considering the explanations filed during the course of the faceless proceedings explaining the error occurred in stating the income under incorrect schedule of the ITR filed and non-adjustment of the application made during the year for charitable purposes resulting in incorrect demand against the assessee. 4. Because in any view of the case proper opportunity should have been given to the assessee by the learned CIT(Appeals) NFAC where the incorrect demand was created under processing of the return by the CPC under section 143(1) of the I.T. Act, 1961. 5. Because the order passed by the learned CIT(Appeals) National Faceless Appeal Centre is bad in law.” 3. Brief facts of the case are that the assessee is a Charitable Society registered under section 12A of the Income-tax Act, 1961 (for short 'the Act') and claiming exemption u/s 11 of the Act. The assessee e-filed its return of income for AY 2017-18 declaring income of Rs.1,19,67,503/-. The return of income was processed u/s 143 (1) of the Act on 16.03.2019 by making disallowance of income set apart to the extent of 15% amounting to Rs.17,97,132/- and disallowance of expenditure for charitable purpose amounting to Rs.1,12,95,725/-. 4. Before the ld. CIT (A), assessee contended that in the ITR 7 filed, assessee instead of declaring of Rs.1,19,67,503/- in Schedule A1 declared the same in Schedule OC – Income from other sources. He further submitted that incorrect reporting of income has resulted in this error in ITA No.96/AGR./2021 3 processing and required that necessary directions be given for correction in ITR processed u/s 143 (1) of the Act. However, ld. CIT (A) was not convinced and was of the opinion that assessee could have submitted a revised return. He declined to provide any relief to the assessee. 5. Against this order, assessee is in appeal before us. We have heard both the parties and perused the records. 6. In our considered opinion, the interest of justice would be served if the matter is remanded to the file of ld. CIT (A). Ld. CIT (A) is directed to provide the assessee an opportunity to revise the return and thereafter decide the matter as per law. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 17 th day of October, 2023. Sd/- Sd/- (ANUBHAV SHARMA) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 17 th day of October, 2023 TS Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(A) 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.