TATA EDUCATION TRUST ,MUMBAI V. ASSISTANT COMMISSIONER OF INCOME TAX -17(3), MUMBAI

ITA 4728/MUM/2024

AI Insights

The case involves the Tata Education Trust, a charitable trust, which appealed against an order passed by the National Faceless Appeal Centre (NFAC) under section 154 of the Income Tax Act, 1961, for the Assessment Year 2014-15. The primary contention in the appeal was the dismissal of the trust's claims for exemptions under sections 10(34) and 10(35) related to dividend income and income from units, which the Assessing Officer had denied. Additionally, the trust contested the levy of surcharge and other charges following the rectification order under section 154. However, the Tribunal's decision in a related main appeal, which favored the trust, rendered the current appeal academic and thus dismissed it.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779039 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2014-2015
• Appeal Filed On: 16-09-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RITESH MISHRA
• Assessee Lawyers: P.J. PARDIWALA AW
• Keywords: Rectification of order; Charitable institution
• Section: 143(3); 154; 11; 12A; 234B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER ITA No.4728/Mum/2024 (Assessment Year: 2014-15) Tata Education Trust, Bombay House, 24, Homi Mody Street, Fort, Mumbai-400001 Vs. Asst. Commissioner of Income Tax-17(3) Kautilya Bhavan, Bandra Kurla Complex, Mumbai-400 051 (Appellant) : (Respondent) PAN NO. AAATT 9835A Appellant by : Shri P.J. Pardiwala a/w Shri Sukhsagar Syal Respondent by : Shri Ritesh Mishra, CIT DR (Appellant) (Respondent) Date of Hearing : 01.10.2025 Date of Pronouncement : 13.10.2025 O R D E R Per Saktijit Dey, Vice President: Captioned appeal arises out of order dated 19.07.2024 passed by National Faceless Appeal Centre (NFAC), Delhi instituted against an order passed under section (u/s.) 154 of the Income Tax Act, 1961 (in short the ‘Act’) for the Assessment Year (AY) 2014-15. 2. The grounds raised by the assessee are as under:- “1. The learned Commissioner of Income-tax (Appeals) ['Id. CIT(A)'] erred in dismissing the appeal without adjudicating on the grounds raised by the Appellant. Printed from counselvise.com 2 ITA No.4728/Mum/2024 Tata Education Trust 2. The Id. CIT(A) ought to have held that the impugned rectification order u/s. 154 of the Income Tax Act, 1961 ('Act') is time barred. 3. The Id. CIT(A) ought to have held that the impugned rectification order is bad in law as it does not contain a Document Identification Number ('DIN'). 4. The Id. CIT(A) erred in deciding the issues which arose out of the order u/s 143(3) tw.s 147 of the Act and not the order u/s 154 of the Act. 5. The Id. CIT(A) ought to have held that the levy of surcharge, education cess and interest u/s, 234B of the Act consequent to the disallowances made is bad in law.” 3. Briefly the facts are, for the assessment year under dispute, assessee being a Charitable Trust registered u/s. 12A of the Act filed its return of income claiming exemption u/s. 11 of the Act. Further in respect of dividend income and income from units earned during the year, the assessee claimed exemption u/s. 10(34) and 10(35) of the Act respectively. In the assessment proceeding, the Asessing Officer (AO) did not accept assessee’s claim of exemption u/s. 10(34) and 10(35) of the Act on the reasoning that since the assessee is a Charitable Trust registered u/s. 12A of the Act and eligible for exemption u/s. 11 of the Act, it is debarred from claiming exemption u/s. 10(34) and 10(35) of the Act. In so far as claim of exemption u/s. 11 of the Act is concerned, the AO did not allow such exemption stating that the assessee had violated the conditions of Section 13(1)(d) and 13(2)(h) of the Act. Accordingly, he completed the assessment without allowing assessee’s claim of exemption u/s. 10(34) and 10(35) of the Act as well as under Section 11 of the Act. Subsequent to completion of assessment, the AO passed an order u/s. 154 of the Act on 22.08.2019 Printed from counselvise.com 3 ITA No.4728/Mum/2024 Tata Education Trust levying surcharge on the tax payable. Against the order passed u/s. 154 of the Act, the assessee preferred an appeal before learned First Appellate Authority, which was dismissed. 4. At the time of hearing, learned counsel appearing for the assessee submitted that if the main appeal of the assessee arising out of the assessment order is allowed in favour, this appeal would become infructuous. 5. We have considered rival submissions and perused the materials on record. While deciding the main appeal of the assessee arising out of assessment completed u/s. 143(3) of the Act this Bench in ITA No. 4282/Mum/2024 and order dated 10.10.2025 has allowed assessee’s claim of exemption u/s. 10(34) and 10(35) of the Act in respect of dividend income and income from units. In view of that, the issues raised in the present appeal have become academic, hence, the appeal has become infructuous. 6. In the result, appeal is dismissed. Order pronounced in the open court on 13/10/2025. Sd/- Sd/- (N.K. Billaiya) (Saktijit Dey) Accountant Member Vice President Mumbai; Dated : 13/10/2025 Aks/- Printed from counselvise.com 4 ITA No.4728/Mum/2024 Tata Education Trust Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(A) 4. CIT - concerned 5. DR, ITAT, Mumbai 6. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai Printed from counselvise.com "