Shri Sumatinathji Jain Derasar Trust, Ahmedabad V. The Income Tax Officer, Ward-1, Exmp , Ahmedabad

ITA 99/AHD/2023

AI Insights

The case involves Shri Sumatinathji Jain Derasar Trust, a religious trust registered under Section 12AA of the Income Tax Act, 1961, which appealed against the order of the CIT(A) at the National Faceless Appeal Centre, Delhi. The dispute centered on the denial of deductions claimed under Section 11 of the Income Tax Act for the Assessment Year 2014-15. The trust had filed its income tax return showing nil income and claimed exemptions under Section 11, which were not allowed by the Centralized Processing Center (CPC) due to the alleged non-filing of Form No.10B. The trust contested this decision, leading to the current appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129486 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-06-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 14-02-2023
• Laws Referred To: Income Tax Act, 1961, Gujarat Public Trust Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 154; 11; 12AA; 10B; 143(1)

Judgement Text

ITA No.99/Ahd/2023 Assessment Year: 2014-15 Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.99/Ahd/2023 Assessment Year: 2014-15 Shri Sumatinathji Jain Derasar Trust, ”Kamalshanti”, Near Sardar Patel Under-bridge, Sardar Patel Colony, Ahmedabad – 380 014. [PAN – AAATS 8611 B] Vs. Income Tax Officer, Ward-1 Exmp., Ahmedabad. (Appellant) (Respondent) Assessee by Shri Hem Chhajed, A.R. Revenue by Shri Suraj Bhan Garwal, Sr. DR Da te o f He a r in g 13.06.2023 Da te o f P ro n o u n ce m e n t 28.06.2023 O R D E R This appeal is filed by the Assessee against order dated 16.01.2023 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2014-15. 2. The Assessee has raised the following grounds of appeal:- “1. The order passed by the Ld. CIT(A) is against law, equity and justice. 2. The Ld. CIT(A) has erred in law and/or facts in upholding the rejection of rectification application filed by the appellant. 3. The Ld. CIT(A) has erred in law and facts in not allowing deduction of amount spent for the object of trust of Rs.11,80,631/-. 4. The Ld. CIT(A) has erred in law and facts in not allowing deduction u/s.11(1)(a) of Rs.1,74,067/-.” 3. The assessee Trust is registered as Public Trust under Gujarat Public Trust Act on 12.01.1953 by the Charity Commissioner. The assessee is a religious trust registered under Section 12AA of the Income Tax Act, 1961 and carrying out activities as per the object defined in the trust deed and approved by all the authorities. The assessee filed return of income showing Rs. Nil income on 05.08.2014 and claimed exemption under Section 11 of the Act. Books of accounts ITA No.99/Ahd/2023 Assessment Year: 2014-15 Page 2 of 3 of the assessee were audited and the Auditors have not pointed out any defects in the books of account or method of accounting. The CPC processed the returns under Section 143(1) of the Act and determined income of Rs.13,54,700/- thereby raising demand of Rs.5,26,180/-. The assessee filed rectification application stating therein that CPC has not allowed deduction under Section 11 of the Act. The Assessing Officer vide order dated 23.12.2020 passed under Section 154 rejected the said application under Section 154 of the Act thereby stating that the assessee failed to file Form no.10B along with income tax return 4. Being aggrieved by the Order passed under Section 154 of the Act, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the assessee has filed Form No.10B on 26.07.2014 which was not taken into account by the Assessing Officer. Therefore, the Assessing Officer may be directed to allow deduction under Section 11 of the Act. 6. The Ld. DR relied upon the order under Section 154 of the Act and the order of the CIT(A). 7. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the very reason for which exemption under Section 11 of the Act was rejected that non-filing of Form No.10B along with ITR appears to be incorrect. The assessee has filed Form 10B on 26.07.2014 and, therefore, the Assessing Officer is directed to allow the deduction under Section 11 of the Act after taking cognisance of the same as per the law. Appeal of the assessee is allowed. 8. In the result, appeal filed by the assessee is allowed. Order pronounced in the open Court on this 28 th June, 2023. Sd/- (SUCHITRA KAMBLE) Judicial Member Ahmedabad, the 28 th day of June, 2023 ITA No.99/Ahd/2023 Assessment Year: 2014-15 Page 3 of 3 PBN/* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad