MOMIN MEDICAL CHARITABLE TRUST,PATAN V. THE INCOME TAX OFFICER,EXEMPTION, PALANPUR

ITA 1038/AHD/2023

AI Insights

The case involves the Momin Medical Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The appeal arose from a rectification order under Section 154 of the Income Tax Act, 1961, for the Assessment Year 2014-15. The Trust, registered under Section 12AA of the Act, had initially claimed exemption under Section 10(23C) instead of Section 11, leading to a tax demand. Subsequent rectification applications were either not acted upon or rejected as being beyond the permissible time limit. The Tribunal found that the first rectification application was not addressed and thus remanded the matter back to the Assessing Officer for a decision on the rectification application, emphasizing the need for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471777 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVINDRA
• Assessee Lawyers: MOHIT BALANI; GIVING
• Keywords: Rectification of order; Charitable institution
• Section: 154; 11; 10(23C)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH BEFORE: DR. BRR KUMAR, VICE PRESIDENT & SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER ITA No. 1038/Ahd/2023 (Assessment Year: 2014-15) Momin Medical Charitable Trust At.- Sedrana, Tal. Sidhpur, Dist. Patan, Sedrana - 384151, Gujarat V/S Income Tax Officer (Exemption) Palanpur PAN NO. : AACTM9189Q (Appellant) (Respondent) Appellant by : Shri Mohit Balani, AR Respondent by : Shri Ravindra, Sr. DR (आदेश)/ORDER Date of hearing : 17-03-2025 Date of Pronouncement : 21-03-2025 PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER: This appeal is filed by the assessee against the appellate order dated 06.11.2023 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (in short ‘CIT(A)’) arising out of the rectification order passed under Section 154 of the Income Tax Act, 1961, (hereinafter referred to as ‘the Act’) relating to Assessment Year 2014-15. 2. Brief facts of the case is the assessee is a charitable trust registered u/s.12AA of the Act. For the A.Y. 2014-15, assessee filed its return of income showing gross receipt of Rs.2,07,76,093/-, which ITA No. 1038/Ahd/2023 (Momin Medical Charitable Trust vs. ITO) A.Y. 2014-15 2 were utilized towards the objects of the trust. However, the assessee inadvertently claimed exemption u/s. 10(23C) of the Act instead of Section 11 of the Act. The return of income was processed by CPC on 02.02.2016 denying the benefit u/s.10(23C) of the Act and demanded a tax of Rs.4,31,560/-. Immediately thereafter, the assessee filed rectification application u/s.154 of the act on 16.06.2016 explaining the error. However, there was no action against the rectification application, therefore, one more application dated 07.12.2022 was filed on 14.12.2022. The same was rejected stating the rectification application is filed beyond four years period as prescribed u/s.154(7) of the Act. 3. Aggrieved against the same, the assessee filed an appeal before the Ld. CIT(A) who has confirmed the addition on the ground that the assessee failed to produce the copy of original rectification application, however, only submitted the screenshot which doesn’t reveal the name or PAN number of the applicant, details of order and issues therein which sought to be rectified or the reason for seeking such rectification. Ld. Counsel appearing for the assessee drawn our attention to Page No.18 of the paper book wherein the computer generated acknowledgement receipt for the rectification application filed on 26.05.2016, the same is reproduced as follows: RECTIFICATION DETAILS Date of Rectification Request 26-May-2016 Rectification Reference Number 179126770260516 Order Type Income Tax Rectification Request Type Return Data Correction (Offline) Rectification Acknowledgement Number 179126770260516 INCOME TAX RETURN (ITR) DETAILS Name of Assessee MOMIN MEDICAL ITA No. 1038/Ahd/2023 (Momin Medical Charitable Trust vs. ITO) A.Y. 2014-15 3 CHARTIABLE TRUST PAN AACTM9189Q ITR Form No. ITR-7 Assessment year 2014-15 e-Filing Acknowledgement Number 381232610041014 DIN (Document Identification Number)/CPC Order No. sought to be Rectified 3.1 However, no action has been taken by the AO as against the first rectification application filed by the assessee. When the second rectification application filed on 14.12.2022 the same also rejected on the ground of barred by limitation. Therefore, in the interest of justice, we deem it fit to setaside the matter back to the file of the Jurisdictional Assessing Officer to pass order on the rectification application dated 26.05.2016 filed by the assessee by giving opportunity of hearing to the assessee. 4. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in Open Court on 21- 03-2025 Sd/- Sd/- (Dr. BRR KUMAR) (T.R. SENTHIL KUMAR) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad: Dated 21-03-2025 S. K. SINHA आदेश कì ÿितिलिप अúेिषत/Copy of the Order forwarded to : 1. अपीलाथê / The Appellant 2. ÿÂयथê / The Respondent. 3. संबंिधत आयकर आयुĉ / Concerned CIT 4. आयकर आयुĉ(अपील) / The CIT(A)- 5. िवभागीय ÿितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडª फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "