SUFI KATHAK FOUNDATION,NEW DELHI V. THE INCOME TAX OFFICER, WARD EXEMP 2(2), DELHI, DELHI

ITA 3330/DEL/2024

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The case involves the Sufi Kathak Foundation appealing against the decision of the Commissioner of Income Tax (Appeals) and the Centralized Processing Center, which denied them the benefit of exemption under sections 11 and 12 of the Income Tax Act, 1961, for the Assessment Year 2018-19. The denial was based on the late filing of the return of income and the audit report, which were submitted on 29.10.2018, past the original due date of 30.09.2018. However, the foundation argued that an extension had been granted by the CBDT, allowing the filings to be made by 31.10.2018. The tribunal found in favor of the foundation, recognizing the extended deadline and directing a re-evaluation of their exemption claim.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23531 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 4 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: 08-11-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 17-07-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PARKASH
• Keywords: Set aside; Principle of natural justice; Benefit of exemption
• Section: 119; 250; 143(1); 11; 139(1); 12

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA No [Assessment Year : Sufi Kathak Foundation, J-237, Saket, New Delhi-110017. PAN-AADAS5230Q APPELLANT Appellant by Respondent by Date of Hearing Date of Pronouncement PER PRADIP KUMAR KEDIA The instant appeal has been filed at the instance of to assail the First Appellate order dated 20.05.2024 passed by Ld. Commissioner of Income Tax (A)/ADDL/JCIT(A) of the Income Tax Act, 1961 [“the Act”] pertaining to 19. 2. The grounds of appeal raised by the assessee read as under: 1. “That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts, in confirming the act DCIT CPC in not allowing the benefit of exemption u/s 11&12 Of the Income Tax Act, more so when assessee has complied with all the necessary conditions in this regard and has further erred in denying the said exemption and that too by recording findings and in violation of principles of natural justice. 2. That in any case and any in view of the matter, action of Ld. CIT(A) in confirming the action of Ld. DCIT CPC in not allowing the IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “SMC” BENCH: NEW DELHI SHRI MAHAVIR SINGH, VICE PRESIDENT & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA No.3330/Del/2024 Assessment Year : 2018-19] Sufi Kathak Foundation, 110017. AADAS5230Q vs ITO, Ward Exemption 2(2) Delhi. RESPONDENT Shri Durgesh Shankar, Adv. Respondent by Shri Om Parkash, Sr.DR Date of Hearing 08.11.2024 Date of Pronouncement 21.11.2024 ORDER KUMAR KEDIA-AM : The instant appeal has been filed at the instance of the assessee seeking to assail the First Appellate order dated 20.05.2024 passed by Ld. Commissioner of Income Tax (A)/ADDL/JCIT(A)-2, Pune [“Ld.CIT(A)”] u/s 250 1961 [“the Act”] pertaining to Assessment Year 201 The grounds of appeal raised by the assessee read as under: “That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts, in confirming the act DCIT CPC in not allowing the benefit of exemption u/s 11&12 Of the Income Tax Act, more so when assessee has complied with all the necessary conditions in this regard and has further erred in denying the said exemption and that too by recording incorrect facts and findings and in violation of principles of natural justice. That in any case and any in view of the matter, action of Ld. CIT(A) in confirming the action of Ld. DCIT CPC in not allowing the SHRI MAHAVIR SINGH, VICE PRESIDENT & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER Ward Exemption 2(2), Shri Durgesh Shankar, Adv. assessee seeking to assail the First Appellate order dated 20.05.2024 passed by Ld. 2, Pune [“Ld.CIT(A)”] u/s 250 Assessment Year 2018- The grounds of appeal raised by the assessee read as under:- “That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts, in confirming the action of Ld. DCIT CPC in not allowing the benefit of exemption u/s 11&12 Of the Income Tax Act, more so when assessee has complied with all the necessary conditions in this regard and has further erred in denying incorrect facts and findings and in violation of principles of natural justice. That in any case and any in view of the matter, action of Ld. CIT(A) in confirming the action of Ld. DCIT CPC in not allowing the exemption U/s 11&12 of the Income Tax Act, against the fact and circumstances of the case. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) ought to have quashed the impugned intimation order passed by Ld. DCIT CPC u/s 143(1) as the subject issue is purview of section 143 (1) of the Act.” 3. As per grounds of appeal, the assessee has challenged the denial of exemption under section 11 & 12 of the Audit Report in Form No.10B and also for belated filing o beyond the due date prescribed under section 139(1) of the Act for the Assessment Year 218-19 in question. 4. The assessee filed return of income for AY 2018 is alleged to be beyond due date prescribed under sectio The Ld.CIT(A) has also alleged that the appellant society has also filed the Audit Report in Form No.10B for claiming exemption under section 11 pertaining to AY 2018-19 on 29.10.2018. The Ld.CIT(A) thus, upheld the action of Centralized Processing Cent 11 & 12 of the Act on the ground that assessee has filed the return of income and also the Audit Report within due date as specified under section the due date for furnishing return of income and Audit Report was 30.09.2018. However, the assessee has filed these documents 29.10.2018 and consequently & 12 of the Act. 5. In this regard, it is the contention of the assessee that in exercise of power conferred under section 119 of the Act, the CBDT vide order dated 08.10.2018 had granted extension of due date for the purposes of filing of return of income as well as various reports of audits pertaining to AY 2018 upto 31.10.2018. Thus, in terms of the CBDT order ITA.No. [Sufi Kathak Foundation exemption U/s 11&12 of the Income Tax Act, is bad in law and against the fact and circumstances of the case. That having regard to the facts and circumstances of the case, Ld. CIT(A) ought to have quashed the impugned intimation order passed by Ld. DCIT CPC u/s 143(1) as the subject issue is purview of section 143 (1) of the Act.” As per grounds of appeal, the assessee has challenged the denial of exemption under section 11 & 12 of the Act owing to alleged delay in filing Audit Report in Form No.10B and also for belated filing of return of income the due date prescribed under section 139(1) of the Act for the 19 in question. The assessee filed return of income for AY 2018-19 on 29.10.2018 which due date prescribed under section 139(1) of the Act. The Ld.CIT(A) has also alleged that the appellant society has also filed the Audit Report in Form No.10B for claiming exemption under section 11 19 on 29.10.2018. The Ld.CIT(A) thus, upheld the action Processing Center (“CPC”) in denying the benefit under section 11 & 12 of the Act on the ground that benefit can only be a assessee has filed the return of income and also the Audit Report within due nder section 139(1) of the Act. The Ld.CIT(A) observed that the due date for furnishing return of income and Audit Report was 30.09.2018. However, the assessee has filed these documents 29.10.2018 and consequently, has forfeited benefits available under In this regard, it is the contention of the assessee that in exercise of power conferred under section 119 of the Act, the CBDT vide order dated 08.10.2018 had granted extension of due date for the purposes of filing of income as well as various reports of audits pertaining to AY 2018 Thus, in terms of the CBDT order .No.3330/Del/2024 Sufi Kathak Foundation] Page | 2 is bad in law and That having regard to the facts and circumstances of the case, Ld. CIT(A) ought to have quashed the impugned intimation order passed by Ld. DCIT CPC u/s 143(1) as the subject issue is outside the As per grounds of appeal, the assessee has challenged the denial of owing to alleged delay in filing f return of income the due date prescribed under section 139(1) of the Act for the 19 on 29.10.2018 which n 139(1) of the Act. The Ld.CIT(A) has also alleged that the appellant society has also filed the Audit Report in Form No.10B for claiming exemption under section 11 19 on 29.10.2018. The Ld.CIT(A) thus, upheld the action r (“CPC”) in denying the benefit under section can only be availed if the assessee has filed the return of income and also the Audit Report within due ) of the Act. The Ld.CIT(A) observed that the due date for furnishing return of income and Audit Report was 30.09.2018. However, the assessee has filed these documents belatedly on available under section 11 In this regard, it is the contention of the assessee that in exercise of power conferred under section 119 of the Act, the CBDT vide order dated 08.10.2018 had granted extension of due date for the purposes of filing of income as well as various reports of audits pertaining to AY 2018-19 Thus, in terms of the CBDT order No.F.No.225/358/2018/ITA. of the return of income as well as the filing of Audit Re No.10B is to be reckoned as 31.10.2018. Consequently, no lapse has occurred on the part of the assessee in compliance of the provisions of the Act has wrongly alleged. 6. This being so, the action of the Ld.CIT(A) in denying the benefit o ground is contrary to the statutory position and th and cancelled. The CPC extended due date afresh for 11 & 12 of the Act. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on Sd/- (MAHAVIR SINGH) VICE PRESIDENT * Amit Kumar * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ITA.No. [Sufi Kathak Foundation No.F.No.225/358/2018/ITA.II dated 08.10.2018, the due date for the purposes of the return of income as well as the filing of Audit Report under Form 10B is to be reckoned as 31.10.2018. Consequently, no lapse has occurred on the part of the assessee in compliance of the provisions of the Act has the action of the Ld.CIT(A) in denying the benefit o o the statutory position and thus requires to be set aside and cancelled. The CPC/JAO is directed to substitute and consi afresh for determination of eligibility of claim under section In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 21st November, 202 (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER ASSISTANT REGISTRAR ITAT, NEW DELHI .No.3330/Del/2024 Sufi Kathak Foundation] Page | 3 dated 08.10.2018, the due date for the purposes port under Form 10B is to be reckoned as 31.10.2018. Consequently, no lapse has occurred on the part of the assessee in compliance of the provisions of the Act has the action of the Ld.CIT(A) in denying the benefit on such s requires to be set aside is directed to substitute and consider the of claim under section , 2024. Sd/- PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER ASSISTANT REGISTRAR ITAT, NEW DELHI Draft dictated Draft placed before author Approved Draft comes to the Sr.PS/PS Order signed and pronounced on File sent to the Bench Clerk Date on which file goes to the AR Date on which file goes to the Head Clerk. Date of dispatch of Order. Date of uploading on the website ITA.No. [Sufi Kathak Foundation Draft dictated 12.11.2024 Draft placed before author 14.11.2024 Approved Draft comes to the Sr.PS/PS 20.11.2024 Order signed and pronounced on 20.11.2024 File sent to the Bench Clerk 21.11.2024 Date on which file goes to the AR Date on which file goes to the Head Clerk. Date of dispatch of Order. Date of uploading on the website .11.2024 .No.3330/Del/2024 Sufi Kathak Foundation] Page | 4 "