SHANKESHWAR PARSHWANATH JAIN SWE MURTIPUJAK TAPGACHCHH TRUST,JAMNAGAR V. INCOME TAX OFFICER, EXEMPTION WARD - 2, RAJKOT

ITA 456/RJT/2023

AI Insights

The case involves Shankeshwar Parshwanath Jain Trust appealing against the orders of the Learned Commissioner of Income Tax (Appeal), National Faceless Appeal Centre, which arose from rectification orders passed by the assessing officer under section 154 of the Income Tax Act, 1961. The main contention was the incorrect assertion by the assessing officer that the trust had not filed Form 10B, which is necessary for claiming exemption under section 11. The Tribunal consolidated the appeals for assessment years 2021-22 and 2015-16 due to the similarity in issues and facts.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473080 (ITAT-RAJKOT)
• Duration Of Justice: 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-08-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 28-12-2023
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH KUMAR PANDEY
• Assessee Lawyers: SAGAR SHAH
• Keywords: Rectification of order
• Section: 154; 143(1); 11; 10B

Judgement Text

" Page | 1 ITA Nos.294, 456 – 457Rjt/2023 Shankeshwar Parshanath Jain Trust IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE (Dr.) ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA Nos. 456 & 457/RJT/2023 Assessment Years: (2021-22 & 2015-16) (Physical Hearing) Shankeshwar Parshwanath Jain Swetamber Murti Pujak Aradhna Bhuvan Trust, Street No.6, Patel Colony, Road No.2, Jamnagar – 361008 Vs. The National Faceless Appeal Centre (NFAC), Delhi èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAKTS1480J (Assessee) (Respondent) Assessee by Shri Sagar Shah, AR Respondent by Shri Ashish Kumar Pandey, Sr. DR Date of Hearing 01/08/2024 Date of Pronouncement 08/10/2024 आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned two appeals filed by the assessee, pertaining to assessment year (AY) 2021-22 and 2015-16, both are directed against the separate orders passed by the Learned Commissioner of Income Tax (Appeal), National Faceless Appeal Centre, [in short “Ld. CIT(A) / NFAC”], Delhi, which turn arise out of separate orders passed by the assessing officer under section 154 of the Income tax Act 1961. 2. Since the issue involved in these two appeals are common and identical, therefore, we have clubbed and heard these two appeals together and a consolidated order is being passed for the sake of convenience and brevity. Page | 2 ITA Nos.294, 456 – 457Rjt/2023 Shankeshwar Parshanath Jain Trust 3. First, we shall take assessee`s appeal in ITA No.456/Rjt/2023, for assessment year (AY) 2021-22. We find that in this appeal, the assessee has raised multiple ground of appeals. However, at the time of hearing we have carefully perused all the grounds raised by the Assessee. We find that most of the grounds raised by the Assessee, are either academic in nature or contentious in nature. However, to meet the end of justice, we confine ourselves to the core of the controversy and main grievances of the Assessee. The main grievance of the assessee, is that the assessee had duly uploaded the Form 10B, on e-filing portal of the Income Tax department, on 10.01.2022, which is evident from acknowledgement of Form 10B, therefore the allegation in the order under section 154 of the Act, passed by the assessing officer that no form was filed, by the assessee, is completely baseless and incorrect. 4. The facts of the case which can be stated quite shortly are as follows: The assessee is a trust engaged in the charitable and religious activities and, regularly assessed to tax and has filed its return of income for assessment year (A.Y.) 2021-22, claiming exemption u/s 11 of the Act, amounting to Rs.24,33,186/-, as per provisions of Section 11(1) of the Act and claimed refund of Rs.22,300/-. Subsequently, the intimation order u/s 143(1) of the Act was also issued dated 24.08.2022, vide DIN:CPC/2122/A7/298207873, wherein exemption claimed under section 11 of the Act was allowed and in said intimation order also, the refund (including interest) of Rs.7,407/-, has also determined for the year under consideration and subsequently it is adjusted. However, subsequently, the rectification order dated 30-03-2023, under section 154 of the Act was passed by CPC Bengaluru and exemption claimed under section 11 of the Act of Rs.24,33,186/- had not been allowed. Page | 3 ITA Nos.294, 456 – 457Rjt/2023 Shankeshwar Parshanath Jain Trust 5. Aggrieved by the order of CPC Bengaluru, the assessee-trust, carried the matter in appeal before ld. CIT(A), who has reiterated the facts narrated by the assessing officer, and then confirmed the findings of the assessing officer. Therefore, the assessee is in appeal before us. 6. Learned Counsel for the assessee, argued before the Bench that the CPC Bengaluru has ignored the facts of the case that assessee has filed the Form No. 10B on time, hence no disallowance should have been made, therefore, assessing officer had passed rectification application without considering the merits of the case. Hence, learned Counsel contended that addition made by the assessing officer may be deleted. 7. On the other hand, the Learned Senior Departmental Representative (Ld. Sr. DR) for the Revenue has primarily reiterated the stand taken by the Assessing Officer, which we have already noted in our earlier para and is not being repeated for the sake of brevity. 8. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. We find that assessing officer ( CPC- Bengaluru ), has erred in law, as well as on facts, in subsequently, disallowing the exemption claimed under section 11 of the Income tax Act 1961, by passing the rectification order under section 154 of the Act, dated 30.03.2023, on the ground, that no Form 10B was filed by the assessee. However, looking to the facts of the assessee`s case, we Page | 4 ITA Nos.294, 456 – 457Rjt/2023 Shankeshwar Parshanath Jain Trust find that assessee had duly uploaded the Form -10B, on e-filing portal of the Income Tax Department, on 10.01.2022. This fact is evident from the acknowledgement of Form 10B, hence the allegations, made by the assessing officer, in the order under section 154 of the Act, is completely baseless. Based on these facts and circumstances, we delete the addition made by the assessing officer. 9. In the result, assessee`s appeal is allowed. 10. Now coming to assessee`s appeal in ITA No.457/Rjt/2023, for assessment year (AY) 2015-16. We note that facts of the case are more or less, similar and identical, as we have discussed above. Learned Counsel for the assessee argued that the due date for filing the return of income for A.Y. 2015-16, was extended from 30.09.2015 to 31.10.2015 vide F.No. 225/207/2015/ITA-II, dated 29.10.2015. From the extracts of ITR-7, placed at record, it is clearly evident that the auditor's report has been obtained in form 10B as on 12.10.2015 which is before the due date of filing of Return of Income and file the same with the department. Therefore, exemption should not be denied to the assessee. 11. On the other hand, the Learned Senior Departmental Representative (Ld. Sr. DR) for the Revenue has primarily reiterated the stand taken by the Assessing Officer, which we have already noted in our earlier para and is not being repeated for the sake of brevity. 14. We have considered the submission of both the parties. We note that assessing officer (CPC Bengaluru), was erred in law, as well as on facts, in not considering the fact that the due date for filing return of income for the assessment year 2015–16, was extended from 30th September 2015, to 31st October 2015, vide F.No. 225/207/2015/ITA- Page | 5 ITA Nos.294, 456 – 457Rjt/2023 Shankeshwar Parshanath Jain Trust II, dated 29.10.2015. From the extract of ITR-7, placed at record, it is abundantly clear that the auditor`s report has been obtained by the assessee in Form No. 10B, as on 12th October 2015, which is before the due date of filing return of income. Hence, based on the factual position, we allow the appeal of the assessee. 15. In the result, the appeal find by the assessee (in ITA No.457/RJT/2023) is allowed. 16. In the combined result, these two appeals filed by the assessee, are allowed. Order is pronounced on 08/10/2024 in the open court. Sd/- Sd/- (DINESH MOHAN SINHA) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER Rajkot Ǒदनांक/ Date: 08/10/2024 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot "