VEDIC EDUCATIONAL SOCIETY,C/O ARYA PUBLIC AND BACHPAN SCHOOL V. INCOME TAX OFFICER, WARD EXEMPTIONS, AMBALA, INCOME TAX OFFICER, WARD EXEMPTIONS, AMBALA

ITA 431/CHANDI/2025

AI Insights

The case involves the Vedic Educational Society, which appealed against the order of the CIT(A) concerning an intimation issued by the CPC under section 143(1) of the Income Tax Act, denying a deduction claimed under section 10(23C)(iiiad) for Rs. 99.87 Lacs for the Assessment Year 2020-21. The CPC's denial was based on incorrect filling of Schedule IE-4 of the ITR. After the first appeal, a rectification order was issued by the CPC deleting the demand against the assessee. The assessee sought to withdraw the appeal, which was not considered by the CIT(A). The Tribunal found that the CIT(A) erred in proceeding with the disposal of the appeal without considering the withdrawal request.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792030 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Appeal Filed On: 22-03-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR LD.
• Assessee Lawyers: B.M. MONGA; ROHIT KAURA
• Keywords: Set aside; Rectification of order
• Section: 154

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.431/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2020-21) Vedic Educational Society C/o Arya Public and Bachpan School Opp. OBC Bank, Shahbad Markanda (Haryana) - 136135 बनाम/ Vs. ITO Ward Exemptions, Ambala Aaykar Bhawan, Ambala Haryana - 133001 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No.AAALV-0323-R (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. B.M. Monga (Advocate) and Sh. Rohit Kaura (Advocate) – Ld. ARs ŮȑथŎकीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 09.12.2025 घोषणाकीतारीख /Date of Pronouncement : 09.12.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2020-21 arises out of an order of Ld. Additional / Joint Commissioner of Income Tax (Appeals)–2, Noida [CIT(A)] dated 30-01-2025 in the matter of an intimation issued by CPC u/s 143(1) of the Act on 24-12-2021 denying the deduction claimed by the assessee u/s 10(23C)(iiiad) for Rs.99.87 Lacs. The CPC has denied the impugned deduction, inter-alia, on the Printed from counselvise.com 2 ground that Schedule IE-4 of the Income Tax Return (ITR) was not filled correctly. The Ld. CIT(A), after due consideration of assessee’s submissions, dismissed the appeal against which the assessee is in further appeal before us. 2. The Ld. AR drew attention to the fact that subsequent to filing of first appeal, a rectification order has been passed by CPC u/s 154 vide CPC/2021/U7/378289407 dated 15-11-2023 deleting the demand as raised against the assessee. This fact was brought to the notice of Ld. CIT(A) and the assessee had sought withdrawal of the appeal vide its submissions dated 13-04-2024 along with copy of rectification order as issued by CPC. However, the said request has not, at all, been considered by Ld. CIT(A) and Ld. CIT(A) has erred in proceeding with disposal of the appeal. The Ld. Sr. DR could not controvert the said position. 3. In view of the pertinent fact that the assessee sought withdrawal of first appeal, we set aside the impugned order and restore the appeal back to the file of Ld. CIT(A) to reconsider assessee’s withdrawal application and pass appropriate orders. Apparently, the demand has been deleted and the assessee has been issued refund and hence, no grievances is left with the assessee. The assessee is directed to plead and prove its case forthwith. Printed from counselvise.com 3 4. The appeal stands allowed for statistical purposes. Order pronounced on 09th December, 2025. -Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 09-12-2025 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "