Kalinga Cultural Trust, Hyderabad V. Income Tax Officer, Exemptions-2, Hyderabad

MA 47/Hyd/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6866 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 30-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B K VISHNU PRIYA
• Assessee Lawyers: V SIVA KUMAR
• Keywords: Rectification of order
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER M.A. NO. 47/HYD/2018 (IN ITA NO. 332HYD/2017 ASSESSMENT YEAR: 2012-13) KALINGA CULTURAL TRUST, HYDERABAD. PAN AAATK3517C VS. INCOME-TAX OFFICER (EXEMPTIONS) - 2, HYDERABAD. (APPLICANT) (RESPONDENT) ASSESSEE BY : SHRI V. SIVA KUMAR REVENUE BY : SMT. B.K. VISHNU PRIYA DATE OF HEARING : 29-06-2018 DATE OF PRONOUNCEMENT : 05-07-2018 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS MISCELLANEOUS APPLICATION IS FILED BY THE ASSE SSEE SEEKING RECTIFICATION OF MISTAKES APPARENT FROM THE RECORD THAT HAVE CREPT INTO THE ORDER OF THE TRIBUNAL DATED 10/11/2017 IN ITA N O. 332//HYD/2017. 2. IN THE M.A. THE ASSESSEE STATED AS UNDER: 2.3 AS REGARDS GROUND NO. 4, HONBLE ITAT RECORDED ITS FINDING AS UNDER: '7. AS REGARDS GROUND NO.3 DELETION OF DISALLOWANCE OF RS.20,29,067/- MADE BY THE A.O U/S 40(A)(IA), WE CO NFIRM THE FINDING OF THE C.I.T(A) THAT AS EXEMPTION U/S.1 1 IS ALLOWED, THE DISALLOWANCE WOULD CONSEQUENTLY GET DE LETED AND ACCORDINGLY, THIS GROUND OF APPEAL IS ALSO DISM ISSED. 2.4 FIRSTLY THE APPLICANT SUBMITS THAT THE MENTION OF GROUND NO.3 IS A MISTAKE. THE RELEVANT GROUND IS GROUND NO.4. 2 M.A. NO. 47/HYD/2018 KALINGA CULTURAL TRUST, HYD. 2.5 THE APPELLANT SUBMITS THAT IN THE APPEAL FILED BEFORE THE C.I.T (A) CONTESTING THE ASSESSMENT, IT FILED THE U NDER MENTIONED GROUND CONTESTING THE DISALLOWANCE MADE U /S 40(A)(IA). 'THE LEARNED ASSESSING OFFICER, ERRED IN MAKING DISALLOWANCE U/S.40(A)(IA) FOR THE SECURITY CHARGES EXPENSES UNDER THE WRONG PRESUMPTION THAT ASSESSEE DID NOT DEDUCT TAX AT SOURCE ON SUCH PAYMENTS AND FURTH ER GROSSLY ERRED IN MAKING SUCH DISALLOWANCE WHEN THE GROSS INCOME IS ASSESSED WITHOUT ALLOWING ANY EXPENDITURE FOR SUCH RECOVERY CHARGES. 2.6 THE LEARNED C.I.T (A) WHILE PASSING THE APPELLA TE ORDER DISPOSED THE ABOVE MENTIONED GROUND WITH THE FOLLOW ING OBSERVATION. 'AS FAR AS THE DISALLOWANCE U/S 40(A)(IA) IS CONCER NED, AS EXEMPTION U/S. 11 IS ALLOWED THE DISALLOWANCE WOULD CONSEQUENTLY GET DELETED.' 2.7 THE APPLICANT SUBMITS THAT IT FILED A PAPER BOO K BEFORE THE HON'BLE ITAT IN WHICH IT FILED THE UNDER MENTIONED DOCUMENTS WHICH WERE PART OF THE BOOKS OF ACCOUNT PRODUCED BE FORE THE ASSESSING OFFICER DURING ASSESSMENT PROCEEDINGS. '1. COPY OF 'SECURITY CHARGES' ACCOUNT AS APPEARING IN THE BOOKS OF KALINGA CULTURAL TRUST, HYDERABAD FOR THE FINANCIAL YEAR 2011-12. 2. COPY OF ACCOUNT OF 'NATIONAL SECURITY SERVICES' AS APPEARING IN THE BOOKS OF KALINGA CULTURAL TRUST, HYDERABAD FOR THE FINANCIAL YEAR 2011-12. 3. COPY OF BALANCE SHEET AS AT 31-03-2012, INCOME A ND EXPENDITURE ACCOUNT FOR THE YEAR ENDING 31-03-2012 AND SCHEDULES THERETO IN THE CASE OF KALINGA CULTURAL T RUST, HYDERABAD'. 2.8 THE APPLICANT SUBMITTED BEFORE THE HON'BLE ITAT FOR A FACTUAL FINDING IN THE LIGHT OF THE FACT THAT TAX W AS DEDUCTED ON THE SECURITY CHARGES PAID BY THE APPLICANT. 3. REFERRING TO THE ABOVE FACTUAL BACKGROUND, THE L D. AR OF THE ASSESSEE SUBMITTED THAT THE OMISSION ON THE PART OF THE HON'BLE I.T.A.T TO TAKE INTO ACCOUNT THE FACTUAL EVIDENCE B ROUGHT TO ITS NOTICE 3 M.A. NO. 47/HYD/2018 KALINGA CULTURAL TRUST, HYD. AND THE OMISSION TO RECORD A FINDING BASED ON THE F ACTUAL EVIDENCE CONSTITUTE MISTAKE APPARENT FROM RECORD. HE, THEREF ORE, PRAYED THAT THE HON'BLE I.T.A.T MAY KINDLY PASS SUCH ORDERS AS IT DEEMS FIT TO RECTIFY THE AFORESAID MISTAKE APPARENT FROM RECORD. 4. LD. DR, ON THE OTHER HAND, CONCEDED THE SUBMISSI ON OF THE LD. AR. 5. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. AS POINTED OUT BY THE ASSESSEE, THERE IS A MISTAKE APPARENT FROM THE RECORD IN THE ORDER (SUPRA), PARA NO. 7 I N THE ORDER IS MODIFIED AS UNDER: 7. WE NOTICE FROM THE RECORD PRODUCED BY THE ASSESS EE THAT ASSESSEE HAS DEDUCTED RELEVANT TAX ON SECURITY CHAR GES. EVEN THOUGH, ASSESSEE HAS SUBMITTED THE DOCUMENT BEFORE THE AO, STILL AO DISALLOWED THE EXPENDITURE. THIS ISSUE SHO ULD GO BACK TO AO FOR VERIFICATION AND DELETION OF THE ABOVE DI SALLOWANCE. SINCE, THE FINDINGS OF CIT(A) ARE CONFIRMED BY US, CONSEQUENTLY, ASSESSEE IS ELIGIBLE FOR EXEMPTION U/S 11. HENCE, T HIS GROUND BECOMES ACADEMIC IN NATURE, ACCORDINGLY, THIS GROUN D RAISED BY THE ASSESSEE IS ALLOWED. 5.1 THE OTHER PART OF THE ORDER REMAINS AS IT IS. 6. IN THE RESULT, M.A. FILED BY THE ASSESSEE IS ALL OWED. PRONOUNCED IN THE OPEN COURT ON 5 TH JULY, 2018. SD/- SD/- (D. MANMOHAN) (S. RIFAUR RAHMAN ) VICE PRESIDENT A CCOUNTANT MEMBER HYDERABAD, DATED: 5 TH JULY, 2018. KV 4 M.A. NO. 47/HYD/2018 KALINGA CULTURAL TRUST, HYD. COPY TO:- 1) KALINGA CULTURAL TRUST, PLOT NO. 1269, ROAD NO. 12, BANJARA HILLS, HYDERABAD 34. 2) ITO (E) 2, 2 ND FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 500 004 3) CIT(A) 9, HYD. 4) PR. CIT (E), HYD. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD. 6) GUARD FILE