NAVODAYA, HARIPADA SAHITYA MANDIR,PURULIA V. ITO, WARD 3(1), ASANSOL

ITA 404/KOL/2025

AI Insights

This case involves an appeal by Navodaya, Haripada Sahitya Mandir against the order of the Addl./JCIT(A)-1, Nashik, for the assessment year 2017-2018. The primary issue was the denial of exemption under section 10(23C)(iiiad) of the Income Tax Act by the Assessing Officer, who cited the non-filing of the income tax return as the reason. The assessee argued that there was no requirement to file a return for the assessment year 2017-2018 based on the amendments to section 10(23C) which made filing compulsory only from the assessment year 2023-2024. The tribunal noted that the Assessing Officer had not properly examined the assessee's claim and thus decided to restore the matter to the CIT(A) for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707011 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 25-02-2025
• Other Referred Cases: Harda Nagar Bal Vikas Samiti Harda vs. [2025] 174 taxmann.com 680 (Indore-Trib)
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MRINMAY BASAK
• Assessee Lawyers: S.K.KAMALUDDIN
• Keywords: Benefit of exemption

Judgement Text

" आयकर अपीलीय अधिकरण,“एस.एम.सी” न्यायपीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA श्री जाजज माथन, न्याययक सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER ITA No.404/KOL/2025 (नििाारण वर्ा /Assessment Year : 2017-2018) Navodaya, Haripada Sahitya Mandir, East lake Road, Purulia, W.B. Vs ITO, Ward-3(1), Asansol PAN No. :AABTN 5764 F (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri S.K.Kamaluddin, AR राजस्व की ओर से /Revenue by : Shri Mrinmay Basak, Sr. DR सुनवाई की तारीख / Date of Hearing : 07/07/2025 घोषणा की तारीख/Date of Pronouncement : 07/07/2025 आदेश / O R D E R This is an appeal filed by the assessee against the order dated 03.01.2025, passed by the Addl./JCIT(A)-1, Nashik, for the assessment year 2017-2018. 2. Shri S.K.Kamaluddin, ld.AR appeared on behalf of the assessee and Shri Mrinmay Basak, ld. Sr. DR appeared on behalf of the revenue. 3. It was submitted by the ld. AR that the assessee had not filed its return of income. It was the submission that there was no monetary requirement of the assessee to file return of income insofar as the proviso to Section 10(23C) of the Act was amended to make it compulsory for filing of return of income only from the assessment year 2023-2024. It was the submission that the Assessing Officer denied the assessee the benefit of exemption u/s.10(23C)(iiiad) of the Act on the ground that the assessee had not filed its return of income. Ld. AR also relied upon the decision of the ITAT Indore Bench of the Tribunal in the case of Harda Nagar Bal Vikas ITANo.404/KOL/2025 2 Samiti Harda, reported in [2025] 174 taxmann.com 680 (Indore-Trib). It was the submission that the Assessing Officer may be directed to grant the assessee the benefit of exemption u/s.10(23C)(iiiad) of the Act. 4. In reply, ld. Sr. DR submitted that no return of income u/s.139(1) of the Act in response to the notice u/s.142(1) of the Act, had been filed by the assessee. He relied on the orders of the ld. Assessing Officer and ld. Addl./JCIT(A). 5. I have considered the rival submissions. A perusal of the facts in the present case, shows that the Assessing Officer has not, in fact, questioned the non-filing of the return for claiming the exemption u/s.10(23C)(iiiad) of the Act. The Assessing Officer has categorically mentioned that the audit report of the assessee shows net profit of Rs.10,30,577/-. For not filing of the return though its basic net profit itself exceeded Rs.10,30,577/-, the Assessing Officer has denied the benefit of exemption u/s.10(23C)(iiiad) of the Act. It is now open to the assessee to decide whether it being filed its return of income or not. The provisions of Section 139(1) of the Act makes it compulsory for an assessee whose income exceeds the basic exempted limit to file its return of income. Here the assessee has not filed its return of income. It is also noticed that the Assessing Officer has not examined the profit and loss account and the balance sheet of the assessee. The assessee claims that the assessee is running an educational institution and is not for the purpose of profit. As the Assessing Officer has not properly examined the claim of the assessee and as it is noticed that the assessee has not represented during the appellate proceedings, therefore, in the interest of justice, the issues in this appeals are restored to the file of the ITANo.404/KOL/2025 3 ld. CIT(A) for readjudication as to the entitlement of the assessee the benefit u/s.10(23C)(iiiad) of the Act and whether the assessee complies with all the conditions as required u/s.10(23C) of the Act. 6. In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 07/07/2025. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 07/07/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. ववभागीय प्रयतयनधि, आयकर अपीलीय अधिकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ज फाईल / Guard file. सत्यावपत प्रयत //True Copy// "