IMPROVEMENT TRUST,KAPURTHALA vs. INCOME TAX OFFICER ( EXEMPTIONS) WARD, JALANDHAR

PDF · subscribers
ITA 201/ASR/2022Status: DisposedITAT Amritsar23 February 2023AY 2019-203 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that there was a technical error in processing the return and that the assessee was registered under Section 12A. Therefore, the exemption claimed under Section 11 was allowable.

What were the facts?

The assessee trust claimed exemption under Section 11 of the Income Tax Act. The CIT(A) disallowed the exemption, stating that a certificate of registration under Section 11A was not filed. The assessee argued that exemption was allowed in previous years and they were registered under Section 12A.

What were the issues?

Whether exemption under Section 11 is allowable when a registration certificate under Section 11A was not filed, despite the assessee being registered under Section 12A and having received similar exemptions in prior years.

Which sections of the Income-tax Act were involved?

Section 11,Section 11A,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE

Hearing: 20.02.2023Pronounced: 23.02.2023

The present appeal has been filed by the assessee against the order of the Ld. CIT(A) National Faceless Appeal Centre (NFAC), Delhi dated 05.08.2022, in respect of AY 2019-20.

Improvement Trust v. ITO 2. At the outset, the ld. counsel for the assessee submitted that the ld.

CIT(A) NFAC was not justified in disallowing the exemptions u/s 11 claimed by the appellant assessee on the pretax that certificate of registration u/s 11A has not been filed before him. The ld. AR argued that he has completely ignored the submission of the assessee that exemptions u/s 11 has been allowed by the ITAT in assessee’s own case, therefore, as a binding precedent, the ld. CIT(A) NFAC as well as the AO ought to have allowed the exemptions u/s 11; that he has failed to appreciate that ld. CIT(A), Jalandhar in assessee’s own case had allowed the exemption u/s 11 in the previous assessment year, i.e., assessment year 2018-19. Thus, the order of the ld. CIT(A) NFAC and the AO are against the law. He pleaded that since, the appellant assessee have been registered u/s 12A of the Act, the exemption claimed u/s 11 of the Act by the appellant may be allowed. The ld. DR has no objection to the request of the assessee, admitting the fact that there may be some technical error in processing the return by CPC u/s 143(1).

3.

Having heard both the sides and perusal of the fact on record. It is observed that there was a technical error by the system while processing the return. It is evident from the registration certificate u/s 12A of the Act filed on the record by the appellant, that exemption claimed u/s 11A of the Improvement Trust v. ITO Act by the appellant is allowable as per law. Accordingly, the AO is directed to allow the assessee trust exemption u/s 11 as claimed by the appellant.

4.

In the result, the appeal filed by the assessee is allowed.

Order pronounced in the open court on 23.02.2023

More judgments on Section 11

All 7,190 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →