SANA TONDON BENEFIT TRUST,KOLKATA vs. I.T.O.(EXEMPTION) - WARD-1(3), KOLKATA, KOLKATA

At the outset, the ld. counsel for the assessee has submitted that the assessee is a benefit trust formed on 27.03.2009 and registered by a deed executed on 15.06.2010. The assessee filed its return of income by declaring Rs.1,01,590/- as income. However, while filing of return of income, the assessee mistakenly filed ITR 7 instead of ITR 5. The Assessment year: 2014-15 Sana Tondon Benefit Trust mistake was not done deliberately and neither with any mala fide intention. The assessee received a defect notice u/s 139(9) of the Act on 08.09.2015 against which a revised return in ITR 5 was filed successfully. The return filed i.e. ITR 5 in response to the defect notice was rejected by Central processing cell and original return i.e. ITR 7 was processed u/s 143(1) of the Act. The assessee, therefore, was taxed at a maximum marginal rate, whereas, the contention of the assessee is that the assessee was liable to be taxed at the rates as applicable to an individual or association of persons.

Being aggrieved by the above order of the central processing centre passed u/s 143(1) of the Act, the assessee preferred appeal before the CIT(A). However, the ld. CIT(A) without considering the merit of the case, dismissed the appeal of the assessee for want to prosecution. The assessee thus come in appeal before us.

The ld. counsel for the assessee has invited our attention to the acknowledgement relating to the e-filing of the rectified return in the prescribed proforma. The assessee inadvertently filed the return in ITR 7, however, when the defect was pointed out, the assessee rectified the defect and filed return in ITR 5. It has been held time and again that the Income Tax Authorities are not supposed to punish assessees for their bona fide mistake. We, therefore, set aside the impugned orders of the lower authorities and restore the matter to the file of Assessing Officer with a direction to examine the contentions raised by the assessee and tax the assessee at the rates as applicable to the assessee-trust considering the revised return filed by the assessee. Assessment year: 2014-15 Sana Tondon Benefit Trust