RAJDHANAI MAITRI CLUB FOUNDATION,NEW DELHI V. ITO WARD-43(6), NEW DELHI

ITA 302/DEL/2024

AI Insights

The case involves Rajdhani Maitri Club Foundation appealing against the order of the National Faceless Appeal Centre (NFAC), which confirmed the actions of the DDIT, CPC, Bengaluru. The primary contention was the disallowance of exemption under section 11 of the Income-tax Act, 1961, due to the late submission of the audit report in Form 10B. The Tribunal noted that similar issues had been previously resolved in favor of the assessee in the case of ACIT v. Xavier Kelvani Mandal Pvt. Ltd., and thus directed a re-adjudication of the appeal on its merits.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 30483 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 11-11-2024
• Assessment Year: 2022-2023
• Appeal Filed On: 29-01-2024
• Other Referred Cases: ACIT v. Xavier Kelvani Mandal Pvt. Ltd. (Gujarat)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Section: 250; 143(1); 11; 139(1); 10B

Judgement Text

"1 ITA no. 302/Del/2024 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No. 302/DEL/2024 [Assessment Year: 2022-23 Rajdhani Maitri Club Foundation, 311, Rajdhani Enclave, Pitampura, Saraswati Vihar, Delhi-110034. PAN: AADTR 6738 H Vs Income-tax Officer, Ward 43(6), Civic Centre, New Delhi. APPELLANT RESPONDENT Appellant by None Respondent by Shri Sanjay Kumar, Sr. DR Date of hearing 11.11.2024 Date of pronouncement 21.11.2024 O R D E R PER SATBEER SINGH GODARA, JM: This assessee’s appeal for assessment year 2022-23 arises against National Faceless Appeal Centre (NFAC), Delhi’s DIN and order no. ITBA/APL/S/250/2023-24/1058355572(1), dated 30.11.2023, in case no. NFAC/2021-22/10245385 in proceedings u/s 250 of the Income-tax Act, 1961 ( in short the “Act”). Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex parte. 2. The assessee pleads the following substantive grounds in the instant appeal: 2 ITA no. 302/Del/2024 “On the facts and in the circumstances of the case and in law the ADDL/JCIT(A)-5. Mumbail erred in- 1. confirming the following actions of DDIT, CPC, Bengaluru - a. determining taxable incorne at Rs. 14,90,811/-against NIL return: b. not allowing exemption claimed u/s 11 of the LT. Act, 1961 on the ground that Audit Report in Form 108 dated 22.09.2022 was filed on 07.11.2022 with the return of income: c. ignoring the Audit Report in Form 108 even though the same was available at the time of passing order u/s 143(1) of the Act; d. taxing the gross receipts of Rs. 14,90,811/- without allowing revenue expenduture Incurred in a sum of Rs. 14,75.974/- on the activities of the Assessee; The above actions being arbitrary, fallacious, unwarranted and illegal must be quashed with directions for appropriate relief.” 3. Suffice to say, the substantive issue between the parties herein appears to be that of correctness of learned lower authorities’ action in disallowing the assessee section 11 exemption claim on the ground that it had belatedly filed its form 10B audit report dated 22.09.2022 than the due date of filing return u/s 139(1) of the Act. The Revenue’s case is that this tax audit report compliance is a mandatory provision for an assessee who claims section 11 exemption. 4. We note in this factual backdrop that the instant issue is no more res-integra in light of ACIT v. Xavier Kelvani Mandal Pvt. Ltd. (Gujarat), wherein their lordships have already settled the same at rest in assessee’s favour and against the department that such a compliance could be even made in first appellate 3 ITA no. 302/Del/2024 proceedings before the CIT(A)/NFAC. I thus accept the assessee’s instant sole substantive grievance in principle and direct the learned CIT(A)/NFAC to re- adjudicate the lower appeal on merits as per law preferably within three effective opportunities subject to a rider that it shall be the taxpayer’s risk and responsibility only to plead and prove all the relevant facts within three effective opportunities in consequential proceedings. Ordered accordingly. 5. This assessee’s appeal is allowed for statistical purpose in above terms. Order pronounced in open court on 21.11.2024. Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "