DEPUTY COMMISSIONER OF INCOME TAX EXEMPTIONS BHUBANESWAR, BHUBANESWAR vs. NM LOK KALYAN TRUST, BHUBANESWAR

Shri M.R.Sahu, M.R.Sahu, ld AR appeared for the assessee and Shri the assessee and Shri Sanjay Kumar, ld CIT DR appeared for the revenue. DR appeared for the revenue.

It was submitted by ld CIT DR that the assessee is It was submitted by ld CIT DR that the assessee is not not entitled to the benefit of exemption benefit of exemption u/s. 11 as it was not claimed in the return of income as it was not claimed in the return of income and since it is not grant of registration and since it is not grant of registration u/s.10(23C)(vi) of the Act, u/s.10(23C)(vi) of the Act,

In reply, ld AR vehemently supported the order of the ld CIT(A). It was the submission that the assessee was entitled to the claim of exemption u/s.11 of the Act and ld CIT(A) has rightly directed the Assessing Officer to examine the claim and allow necessary relief. It was the further submission that the order of the Assessing Officer was u/s.143(1), wherein, entire receipts have been brought to tax and entire application has been disallowed. It was the submission that it is not permissible in an intimation u/s.143(1) of the Act.

We have considered the rival submissions. A perusal of the Central Scrutiny Report as filed alongwith the appeal filed by the revenue clearly shows that the ld CIT(A) has observed that the assessee is registered u/s.12AA of the Act vide registration certificate No.22/2007-08 dated 29.8.2007 and had duly filed Form No.10B, which makes it eligible to avail exemption u/s.11. No exemption was granted by CPC simply because the appellant, owing a typographical error, had wrongly mentioned a wrong section 10(23C)(via) of the Act. Ld CIT(A) by referring to the CBDT circular No.14(XI-35) of 1955 dated April 11, 1955, has observed that the Assessing officer should not take advantage of ignorance of law or mistake committed by the assessee while claiming of exemption in the return of income. The P a g e 2 | 3 above findings of ld CIT(A) have not been dislodged by the revenue before us. Moreover, assesse has already filed Form 10B for making claim of exemption u/s.11 of the Act. This being so, we are of the view that the findings as arrived at by the ld CIT(A) is on right footings and does not call for any interference. In these circumstances, the grounds of appeal raised by the revenue stands dismissed.

In the result, appeal of revenue stands dismissed.