HRN The Prince Agakhan Hostel, Botad v. DCIT- CPC,, Banglore

ITA 1531/AHD/2018 | 2016-2017
Pronouncement Date: 31-08-2021 | Result: Partly Allowed

Appeal Details

RSA Number 153120514 RSA 2018
Assessee PAN AAATH1057L
Bench Ahmedabad
Appeal Number ITA 1531/AHD/2018
Duration Of Justice 3 year(s) 2 month(s) 19 day(s)
Appellant HRN The Prince Agakhan Hostel, Botad
Respondent DCIT- CPC,, Banglore
Appeal Type Income Tax Appeal
Pronouncement Date 31-08-2021
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 31-08-2021
Date Of Final Hearing 24-04-2020
Next Hearing Date 24-04-2020
Last Hearing Date 20-02-2020
First Hearing Date 20-02-2020
Assessment Year 2016-2017
Appeal Filed On 11-06-2018
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH (CONDUCTED THROUGH VIRTUAL COURT) BEFORE: SHRI AMARJIT SINGH ACCOUNTANT MEMBER AND MS. MADHUMITA ROY JUDICIAL MEMBER HRN THE PRINCE AGAKHAN HOSTEL BOTAD-364710 PAN: AAATH1057L (APPELLANT) VS DCIT-CPC BANGALORE (RESPONDENT) REVENUE BY: SHRI L.P. JAIN SR. D.R. ASSESSEE BY: SHRI G.R SANGHVI A.R. DATE OF HEARING : 08-07-2021 DATE OF PRONOUNCEMENT : 31-08-202 1 /ORDER PER : AMARJIT SINGH ACCOUNTANT MEMBER:- THIS ASSESSEES APPEAL FOR A.Y. 2016-17 ARISES FRO M ORDER OF THE CIT(A)-6 AHMEDABAD DATED 10-05-2018 IN PROCEEDIN GS UNDER SECTION 143(1) OF THE INCOME TAX ACT 1961; IN SHORT THE ACT. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APP EAL:- ITA NO. 1531/AHD/2018 ASSESSMENT YEAR 2016-17 I.T.A NO. 1531/AHD/2018 A.Y. 2016-17 PAGE NO HRN THE PRINCE AGAKHAN HOSTEL VS. DCIT-CPC 2 1. THAT THE HONORABLE C. I.T.(A)-6 AHMEDABAD HA S GRIEVOUSLY ERRED IN CONFIRMING THE ADDITION OF RS.10 50 000 BEING DENIA L OF CLAIM MADE BY THE APPELLANT U/S 11(2) OF THE I.T. ACT. 2. THAT THE HONORABLE C.I.T.(A)-6 AHMEDABA D HAS GRIEVOUSLY ERRED IN NOT ADJUDICATING ON GROUND NO.4 WHICH WAS FRAM ED AS THAT ADJUSTMENT SO DONE BY THE LEARNED A. 0. IS BEYOND THE JURISDICTIO N VESTED U/S 143(1) OF THE ACT.' 3. THE MAINLY GRIEVANCE OF THE ASSESSEE IS AGAINS T THE ORDER OF LD. CIT(A)-6 IN CONFIRMING THE ADDITION OF RS. 10 50 00 0/- BEING DENIAL OF CLAIM MADE BY THE ASSESSEE U/S. 11(2) OF THE ACT. 4. THE FACT IN BRIEF IS THAT THE ASSESSEE IS A PUBL IC CHARITABLE TRUST ENGAGED IN THE FIELD OF EDUCATION REGISTERED BOTH U NDER THE BOMBAY PUBLIC TRUST ACT 1947 AND HAS BEEN GRANTED REGISTRATION U /S. 12AA OF THE INCOME TAX ACT. THE ASSESSEE HAS FILED RETURN OF INCOME E LECTRONICALLY ON 31 ST MARCH 2017 DECLARING NET INCOME OF RS. 1 80 341/- FOR CLAIMING DEDUCTION U/S. 11(2) OF THE ACT OF RS. 10 50 000/-. THE RETU RN OF INCOME FILED BY THE ASSESSEE WAS PROCESSED BY THE CPC BANGALORE U/S. 1 43(1) OF THE ACT. AS PER THE INTIMATION DATED 8 TH SEP 2017 THE CPC HAS DISALLOWED THE CLAIM OF DEDUCTION OF RS. 10 50 000/- ON THE GROUND THAT ASS ESSEE HAD NOT FILED ITS RETURN AND FORM NO. 10 WITHIN THE DUE DATE PRESCRIB ED U/S. 139(1) OF THE ACT. 5. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE L D. CIT(A). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE STA TING THAT IN ORDER TO CLAIM DEDUCTION U/S. 11(2) IT IS MANDATORY TO FILE FORM NO. 10 ON OR BEFORE DUE DATE OF FILING RETURN OF INCOME W.E.F. 01-04-2016 FROM A SSESSMENT YEAR 2016-17. SINCE THE ASSESSEE HAS NOT FILED FORM NO. 10 ON OR BEFORE THE DUE DATE OF I.T.A NO. 1531/AHD/2018 A.Y. 2016-17 PAGE NO HRN THE PRINCE AGAKHAN HOSTEL VS. DCIT-CPC 3 FILING OF RETURN OF INCOME THEREFORE THE LD. CIT(A) HAS HELD THAT CPC WAS RIGHT IN NOT GRANTING EXEMPTION U/S. 11(2) OF THE A CT. 6. HEARD BOTH THE SIDES AND PERUSED THE MATERI AL ON RECORD. THE DISPUTE IN PRESENT APPEAL IS PERTAINED TO DENIAL OF ASSESSE ES CLAIM OF EXEMPTION UNDER SECTION 11(2) OF THE INCOME TAX ACT 1961. TH E ASSESSEE IS A CHARITABLE TRUST AND HAS BEEN GRANTED REGISTRATION UNDER SECTION 12AA OF THE ACT. FOR THE ASSESSMENT YEAR UNDER CONSIDERATION THE ASSESSEE HAS FILED ITS RETURN OF INCOME ON 31 ST MARCH 2017 ELECTRONICALLY CLAIMED RS. 10 50 000/- AS EXEMPTION U/S. 11(2) OF THE ACT ON ACCOUNT OF AC CUMULATED PROFITS. WHILE PROCESSING THE RETURN FILED BY THE ASSESSEE THE CE NTRAL PROCESS CENTRE (CPC) BANGALORE REJECTED THE ASSESSEES CLAIM OF EXEMPTIO N U/S. 11(2) OF THE ACT BECAUSE OF NOT FILING DECLARATION IN FORM NO. 10 ON OR BEFORE DUE DATE OF FILING RETURN OF INCOME SPECIFIED UNDER SUB-SECTION (1) OF SECTION 139 FOR FURNISHING RETURN OF INCOME FOR THE PREVIOUS YEAR. WITH EFFECT FROM 01-01- 2016 IN ORDER TO CLAIM EXEMPTION U/S. 11(2) IT IS MANDATORY THAT FORM NO. 10 IS FILED ON OR BEFORE DUE DATE OF FILING OF RETURN OF INCOME. THEREFORE PRIOR TO THE AMENDMENT MADE TO THE RULE 17 THERE WAS NO REQUIREMENT FOR FILING OF FORM NO. 10 ELECTRONICALLY. IT IS OBSERVED THAT TH E NEW SYSTEM OF FILING FORM NO. 10 ON ELECTRONIC MODE WAS AN EXPERIMENTATION IN TRODUCED RECENTLY IN THE YEAR UNDER ASSESSMENT YEAR 2016-14 W.E.F. 01-04-201 6 WHICH PRONED TO INITIAL HARDSHIPS EXPERIENCED BY THE ASSESSEE. THE REFORE A NUMBER OF REPRESENTATIONS HAVE BEEN RECEIVED BY THE CBDT SEEK ING CONDONATION OF DELAY IN FILING RETURN OF INCOME BY THE CHARITABLE INSTITUTIONS FOR THE A.Y. 2016-17 ONWARDS ON GROUNDS OF HARDSHIP AS DEMONSTRA TED FROM THE CBDT CIRCULAR NO. 06/2020 DATED 19 TH FEBRUARY 2020. THE BOARD HAS ISSUED I.T.A NO. 1531/AHD/2018 A.Y. 2016-17 PAGE NO HRN THE PRINCE AGAKHAN HOSTEL VS. DCIT-CPC 4 CIRCULARS AUTHORIZING THE COMMISSIONER OF INCOME TA X TO ADMIT BELATED APPLICATIONS OF FROM NO. 9A AND FORM 10 TO DECIDE O N MERIT THE CONDONATION OF DELAY U/S. 119(2)(B) OF THE INCOME T AX ACT 1961. AS SECTION 13(9) OF THE ACT INSERTED W.E.F . 01-04-2016 STIPULATES TWIN CONDITIONS OF FILING OF FORM 9A/FROM 10 AND ALSO OF FILING OF INCOME TAX RETURN BEFORE THE DUE DATE THE CBDT VIDE ABOVE CIR CULAR HAS DECIDED THAT WHERE RETURN OF INCOME HAS BEEN FILED ON OR BEFORE 31 ST MARCH OF THE RESPECTIVE ASSESSMENT YEARS I.E. A.Y. 2016-17 2017 -18 AND 2019-19 THE COMMISSIONER OF INCOME TAXES (EXEMPTIONS) ARE AUTHO RIZED U/S. 119(2)(B) TO ADMIT SUCH BELATED APPLICATIONS FOR CONDONATION OF DELAY IN FILING RETURN OF INCOME AND DECIDE ON MERIT. SINCE THE INSTANT APPEAL IN THE CASE OF THE ASSESSEE ON THE IMPUGNED ISSUE OF CLAIM OF EXEMPTION U/S. 11(2) WAS ADJUDICA TED BY THE LD. CIT(A) ON 10/05/2018 MUCH BEFORE THE ISSUING OF CBDT CIRCULAR NO. 06/2020 DATED 19-02-2020 THEREFORE KEEPING IN VIEW THE SUBSISTE NCE OF HARDSHIPS AS CONTENDED IN THE ABOVE CITED CBDT CIRCULAR WE OBSER VE THAT ASSESSEES CLAIM OF EXEMPTIONS UNDER SECTION 11(2) OF THE ACT CANNOT BE REJECTED ONLY FOR THE REASONS OF DELAY IN FILING FORM 10 ALONG WI TH RETURN OF INCOME AS THE NEW SCHEME OF FILING THE DECLARATION ON ELECTRONIC MODE WAS RECENTLY INTRODUCED W.E.F. 01-04-2016 IN THE YEAR OF ASSESSM ENT UNDER CONSIDERATION. IN VIEW OF THE AFORESAID WE RESTORE THE I SSUE TO THE ASSESSING OFFICER WITH A DIRECTION TO VERIFY FORM NO. 10 FILED BY THE ASSESSEE AND ALLOW ASSESSEES CLAIM OF EXEMPTION ON MERIT UNDER SECTIO N 11(2) OF THE ACT. 1 ST GROUND OF APPEAL OF ASSESSEE IS ALLOWED FOR STATIST ICAL PURPOSES. SINCE WE HAVE RESTORED THE ISSUE IN APPEAL TO THE FILE OF AS SESSING OFFICER FOR DECIDING I.T.A NO. 1531/AHD/2018 A.Y. 2016-17 PAGE NO HRN THE PRINCE AGAKHAN HOSTEL VS. DCIT-CPC 5 ON MERIT THEREFORE 2 ND GROUND OF APPEAL OF THE ASSESSEE BECOME INFRUCTUOU S AND THE SAME STANDS DISMISSED. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31-08-2021 SD/- SD/- (MADHUMITA ROY) (AMARJIT SINGH) JUDICIAL MEMBER A CCOUNTANT MEMBER AHMEDABAD : DATED 31/08/2021 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER/ /