INCOME-TAX OFFICER (EXEMPTIONS),, PUNE vs. POONA PANJARPOLE TRUST, PUNE

This is an appeal filed by the Revenue directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 27.09.2022 for the assessment year 2015-16.

Briefly, the facts of the case are that the assessee is public trust registered under the Bombay Public Trust Act, 1950. It is formed for the purpose of rendering the charitable activities by running a Goshala. The assessee trust is also registered u/s 12A of the Income Tax Act, 1961 (‘the Act’) and granted approval u/s 80G of the Act. The Return of Income for the assessment year 2015-16 was filed on 04.09.2015 disclosing Rs.Nil income after claiming exemption u/s 11 of the Act. The said return of income was processed u/s 143(1) vide Intimation dated 24.02.2017 at total income of Rs.4,50,00,000/-. On receipt of the intimation, a rectification petition u/s 154 was filed on 08.03.2017 stating that the intimation was issued without granting exemption u/s 11 of the Act. The said petition u/s 154 came to be rejected vide order dated 28.06.2021 on the ground that the assessee trust had not filed Form No.10B. 3. Being aggrieved, an appeal was filed before the NFAC, who vide impugned order held that there is requirement of filing Form No.10B in order to apply surplus income for subsequent application. The NFAC further held that the investments made in the acquisition of the assets made by the assessee trust in fixed deposits amounts to application of income and, therefore, the question of filing Form No.10B does not arise. 4. Being aggrieved by the decision of the ld. CIT(A), the Revenue is in appeal before us in the present appeal. 5. The ld. Sr. DR contends that the assessee trust had not sought the exemption u/s 11(1A) in respect of the sale proceeds of the capital assets in the return of income. Therefore, the NFAC erred in holding that the investments in fixed deposits amounts to application of income. He further contended that the NFAC ought