MASTER PRO INSTITUTE TECHNOLOGY ,SRINAGAR V. INCOME TAX OFFICER ( EXEMPTION) WARD, JAMMU

ITA 242/ASR/2023

AI Insights

The case involves Master Pro Institute of Technology, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the assessment year 2018-19. The primary issues revolved around the denial of deductions under section 10(23C) and the incorrect application of Form 10B instead of 10BB, among others. The tribunal noted procedural oversights and insufficient consideration of the appellant's submissions regarding the filing and applicability of the relevant forms and deductions. The tribunal's decision to remand the case was based on the need for a thorough examination of whether the income tax return and other statutory forms were filed within the extended deadlines and to ensure that the appellant's expenses were considered in the tax assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471495 (ITAT-AMRITSAR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: DAVINDER PAL SINGH
• Assessee Lawyers: UPENDER BHAT
• Keywords: Principle of natural justice
• Section: 143(1); 11; 12AA; 139; 234B; 10B; 10(23C)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, AMRITSAR BEFORE SHRI UDAYAN DAS GUPTA, JUDICIAL MEMBER AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 242/ASR/2023 Ǔनधा[रण वष[ / Assessment Year : 2018-19 Master Pro Institute of Technology, C/o Bhat Durani & Associates 207, Ist Floor, Yatri Bhawan II, Durga Nag Dalgate, Srinagar 900001 Vs. बनाम The ITO (Exemption), Jammu èथायी लेखा सं./PAN NO: AABTM8569K अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent ( Hybrid Hearing ) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Upender Bhat, CA राजèव कȧ ओर से/ Revenue by : Shri Davinder Pal Singh, Sr.DR सुनवाई कȧ तारȣख/Date of Hearing : 18.12.2024 उदघोषणा कȧ तारȣख/Date of Pronouncement : 31.12.2024 आदेश/Order Per Krinwant Sahay, AM: Appeal in this case has been filed by the Assessee against the order dated 31.03.2023 passed by Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (NFAC) for A.Y. 2018- 19. 2. Grounds of appeal are as under:- 1. U/s 10(23C) iiiad 242-Amritsar--2023 Master Pro Institute of Technology, J&K 2 That the learned CIT has erred in law and in facts of the case in not allowing the deduction u/s 10(25C) iiiad. 2. Addition of Rs. 7482103/- That the CPC has erred in not allowing the amount applied in the previous year and making addition of Rs. 7482103/- being the gross receipts. 3. Form 10B in place of 10BB That without prejudice to other grounds of appeal the assessing officer was wrong to deny exemption under section 11 on the ground that the form 10B in place of 10BB filed by the appellant. 4. Section 234B That interest under section 234B has wrongly been charged as the appellant was not liable to pay any advance tax during the financial year as such there was no default. 5. Demand or Rs. 3286447/- That the CPC has erred in raising a demand of Rs. 3286447/- towards the tax and interest calculated on the addition of Rs. 7482103/- 6. Principle of natural justice That the intimation order u/s 143(1) / CIT(A) is against the principle of natural justice as all expenses have been disallowed and tax has been charged on gross receipts without providing adequate opportunity. 7. Additional grounds That the assessee craves to add or delete any additional ground of appeal at the time of hearing. 242-Amritsar--2023 Master Pro Institute of Technology, J&K 3 3. From the appeal filed, it is found that there is a delay of 83 days in filing of the appeal before the Tribunal. For this delay, the Assessee has filed an Affidavit, which is as under:- 242-Amritsar--2023 Master Pro Institute of Technology, J&K 4 4. We have considered the reasoning filed in the affidavit and on the basis of explanation given in the Affidavit, the delay in filing the appeal is hereby condoned. The ld. DR did not oppose to condone the delay. 242-Amritsar--2023 Master Pro Institute of Technology, J&K 5 5. The CIT(A) in the appellate order has given his findings as under:- “11.1 However the appellant did not submit any evidence for being furnished form 10BB electronically for the A.Y. 2018-19. Further, it is seen from the ITBA module that the appellant did not file audit report under section 10(23C) for the A.Y.2018-19. 11.2. The appellant should have e-filed audit report in form 10BB along with return of income. Since the appellant has not given any documentary evidence for having filed form 10BB within stipulated time as per the provisions of 10(23C) of Income Tax Act, II do not have any reason to interfere in the adjustment made u/s 143(1) of Income Tax Act dated 04.12.2019.” 6. In the proceedings before us, the ld. Counsel submitted that the trust was duly registered under Section 10(23C) (6) (VI) and form 10B has been duly filed on 12-11-2018. It was submitted that the audit signing date of the same was 30-10-2018 and in this regard our attention was invited to CBDT notification dated 08 October 2018 regarding extension of filing the return from 30 September, 2018 to 31 October, 2018. The ld. CIT(A) failed to take cognizance of instructions no. 173/193/2019-ita-l dated 23 April 2019 in which the CBDT has directed that the trusts registered u/s 12AA should be given the benefits of Section 11 if it filed its return in time allowed u/s 139(4A) of the Income tax Act. It further clarifies that prescribed period u/s 139 242-Amritsar--2023 Master Pro Institute of Technology, J&K 6 (4A) is time allowed under section 139 (4) and the demands created otherwise u/s 143 (1) (a) may be rectified. The financial statements of the trust duly audited alongwith form 10B was also filed. 7. The ld. Counsel also filed the financial statement of the Trust duly audited along with Form No. 10B. He further submitted that the Assessee has wrongly filed Form No. 10B in place of Form No. 10BB due to oversight and ignorance of the Assessee. He also submitted that the audit report was duly uploaded on the site on 14.11.2018 within due date allowed u/s 139 (4A) of the Act, i.e., within allowed time though the audit report has been filed in Form No. 10B in place of Form No. 10BB and finally the ld. Counsel of the Assessee submitted that the turn over of the Society was less than Rs. 1 Crore, therefore, it was eligible for exemption u/s 10(23C)(iiiad) but the ld. CIT(A) did not clarify or gave his findings on Ground No. 2 regarding taxing the gross receipts and not allowing expenses incurred by the trust towards objects of the trust. 8. The ld. DR relied on the order of the ld. CIT(A). 9. We have considered the findings given by the ld. CIT(A) in his appeal order and we find that in the interest of natural justice, the 242-Amritsar--2023 Master Pro Institute of Technology, J&K 7 matter should be remanded back to the A.O. in order to verify whether the income tax return along with other statutory forms required were filed within enhanced time or not. Since the ld. CIT(A) has not given any findings on the issue of taxing the entire receipts without making adjustment for expenses, therefore, the case is hereby remanded back to the file of Assessing Officer for making verification and passing a speaking order, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the A.O. All pleas available under the law shall remain so available to the assessee. Ordered accordingly. 10. In the result, appeal is allowed for statistical purposes. Order pronounced on 31.12.2024. Sd/- Sd/- ( UDAYAN DAS GUPTA ) ( KRINWANT SAHAY ) Judicial Member Accountant Member “आर.क े.” आदेशकȧĤǓतͧलͪपअĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकरआयुÈत/ CIT 4. ͪवभागीयĤǓतǓनͬध, आयकरअपीलȣयआͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[फाईल/ Guard File आदेशानुसार/ By order, "