ITO (E) AGRA, AGRA V. SHRI SHRI NARHARI SEWASANSTHAN, MATHURA

ITA 70/AGR/2024

AI Insights

The case involves an appeal by the Revenue against Shri Shri Narhari Sewasansthan concerning the assessment year 2016-17. The appeal was based on an intimation issued by the Centralized Processing Center, Bengaluru, which denied exemption under section 11 of the Income-tax Act, 1961. The Commissioner of Income-tax (Appeals) had later granted the exemption based on the registration under section 12AA. The Revenue's appeal to the ITAT was dismissed due to the low tax effect, which was below the Rs. 60 lakhs threshold set by recent CBDT circulars. The Revenue argued that the appeal was maintainable under an exception concerning challenges to the constitutional validity of acts or rules, but the ITAT found no such challenge in this case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23184 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SRIVASTAVA
• Section: 143(1); 11; 12AA

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AGRA (SMC) BENCH, AGRA BEFORE: SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ITA No.70/Agr/2024 Assessment Year: 2016-17 Income Tax Officer(Exemption) Room No. 604, Aayakar Bhawan Sanjay Place, Agra-282002, U.P. v. Shri Shri Narhari Sewasansthan 302, Gurukul Marg Vrindaban, Mathura-281121 Uttar Pradesh . (Appellant) (Respondent) Assesseeby :None Revenue by : Sh. Shailendra Srivastava, Sr. DR Date of hearing :24.12.2024 Date of Pronouncement :31.12.2024 ORDER This appeal in ITA No. 70/Agr/2024 for the assessment year 2016-17filed by Revenue has arisen from the appellate order dated 17.01.2024 (DIN& Order No. ITBA/APL/S/250/2023- 24/1059806852(1)) passed by learned Commissioner of Income- tax(Appeals),Addl/JCIT(A)-3, Bengaluru,which in turnhas arisen from the intimation dated 03.01.2018 issued by Centralized Processing Center, Bengaluru u/s 143(1) of the Income-tax Act, 1961. ITA No. 70/Agr/2024 2 2. At the outset, it is observed that tax-effect in this appeal filed by the Revenue with ITAT, Agra Bench, Agra is 5,79,970/- as stated by the Revenue itself in the Form No. 36. None appeared on behalf of the assessee when this appeal was called for hearing before the SMC Bench. The ld. Sr. DR was asked as to how this appeal filed by the Revenue is maintainable as tax-effect is lower than Rs. 60 lacs(earlier Rs. 50 lacs) required for maintainability of Revenue’s appeal before ITAT. The ld. Sr. DR sought liberty to file written reply . which was granted by the Bench. The ld. Sr DR has now filed reply vide F.No. CIT(DR)/ITAT/Narhari Sewa/Agra/2024-25/168 dated 30.12.2024 , wherein report of ITO(Exemption) , Agra is enclosed. The same is placed on record. This appeal was filed by Revenue and authorisation filed along with appeal dated 22.2.2024 signed by ld. CIT(Exemption), Lucknow, states that this appeal filed by Revenue is maintainable keeping in view Circular No. 17/2019 dated 08.08.2019 read with exception as laid down in clause 10(a).The ITO(E), Agra has stated in letter dated 26.12.2024 to CIT(E) , Lucknow(copy placed on record), that this appeal is maintainable keeping in view exception 10(a) of Circular No. 3/2018 dated 11.07.2018 and its ITA No. 70/Agr/2024 3 subsequent amendment dated 20.08.2018 as also read with Circular No. 17/2019 dated 08.08.2019. 3. After hearing ld. Sr. DR and perusing the material on record, I dismiss this appeal in ITA no. 70/Agr/2024 for assessment year 2016- 17filed by the Revenue as not maintainable keeping in view low tax- effect being below the monetary limit prescribed by Circular No. 03/2018 dated 11.07.2018 and its amendment dated 20.08.2018 and Circular No. 17/2019 dated 08.08.2019. The tax-effect in this appeal is Rs. 5,79,970/- which is admittedly below the monetary limit viz. presently Rs. 60 lacs(earlier Rs. 50 lacs) for filing appeal with ITAT by Revenue. The department is relying on exception 10(a) which deals with challenge to constitutional validity of the provisions of an Act or Rule . In the present case , I donot find that there was any challenge to the constitutional validity to the provisions of the Act or Rule. It was a case where CPC denied the exemption to the assessee u/s 11 of the 1961 Act while framing assessment vide intimation u/s 143(1), while ld. CIT(A) on the strength of registration held by the assessee u/s 12AA granted exemption to the assessee u/s 11 . There was no challenge to the vires of the Act or the Rules. I have also gone ITA No. 70/Agr/2024 4 through aforesaid circulars dealing with monetary limits for filing appeal by Revenue, and I donot find that this appeal is covered by exceptions to the said circulars. Thus, I hold that this appeal filed by the Revenue is not maintainable and is liable to be dismissed , keeping in view the aforesaid CBDT circulars. I clarify that I have not commented on the merits of the issues arising in this appeal. I order accordingly. 4. In the result, appeal filed by the Revenue is dismissed. Order pronounced in the open court on 31.12.24. Sd/- (RAMIT KOCHAR) ACCOUNTANT MEMBER Dated:31/12.2024 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT Assistant Registrar ITAT Agra "