TATA EDUCATION TRUST ,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX -17(3), MUMBAI

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ITA 4728/MUM/2024Status: DisposedITAT Mumbai13 October 2025AY 2014-15Bench: SHRI SAKTIJIT DEY (Vice President), SHRI NARENDRA KUMAR BILLAIYA (Accountant Member)1 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that a related appeal regarding the main assessment order (u/s 143(3)) for the same assessment year had already been allowed, granting the assessee's claim for exemption. Consequently, the issues raised in the present appeal against the rectification order were deemed academic.

What were the facts?

The assessee, a Charitable Trust, claimed exemption under sections 11, 10(34), and 10(35) of the Income Tax Act for AY 2014-15. The AO denied these exemptions, citing violations of Section 13(1)(d) and 13(2)(h) and subsequently passed a rectification order u/s 154 of the Act. The CIT(A) dismissed the assessee's appeal against the rectification order.

What were the issues?

Whether the appeal against the rectification order u/s 154 has become infructuous/academic due to the allowance of the main appeal related to the assessment order.

Which sections of the Income-tax Act were involved?

Section 154,Section 143(3),Section 147,Section 11,Section 10(34),Section 10(35),Section 13(1)(d),Section 13(2)(h),Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI NARENDRA KUMAR BILLAIYA

For Appellant: Shri P.J. Pardiwala a/w Shri
For Respondent: Shri Ritesh Mishra, CIT DR
Hearing: 01.10.2025Pronounced: 13.10.2025

O R D E R Per Saktijit Dey, Vice President: Captioned appeal arises out of order dated 19.07.2024 passed by National Faceless Appeal Centre (NFAC), Delhi instituted against an order passed under section (u/s.) 154 of the Income Tax Act, 1961 (in short the ‘Act’) for the Assessment Year (AY) 2014-15. 2. The grounds raised by the assessee are as under:-

1. The learned Commissioner of Income-tax (Appeals) ['Id. CIT(A)'] erred in dismissing the appeal without adjudicating on the grounds raised by the Appellant.

2.

The Id. CIT(A) ought to have held that the impugned rectification order u/s. 154 of the Income Tax Act, 1961 ('Act') is time barred.

3. The Id. CIT(A) ought to have held that the impugned rectification order is bad in law as it does not contain a Document Identification Number ('DIN').

4. The Id. CIT(A) erred in deciding the issues which arose out of the order u/s 143(3) tw.s 147 of the Act and not the order u/s 154 of the Act. 5. The Id. CIT(A) ought to have held that the levy of surcharge, education cess and interest u/s, 234B of the Act consequent to the disallowances made is bad in law.”

3.

Briefly the facts are, for the assessment year under dispute, assessee being a Charitable Trust registered u/s. 12A of the Act filed its return of income claiming exemption u/s. 11 of the Act. Further in respect of dividend income and income from units earned during the year, the assessee claimed exemption u/s. 10(34) and 10(35) of the Act respectively. In the assessment proceeding, the Asessing Officer (AO) did not accept assessee’s claim of exemption u/s. 10(34) and 10(35) of the Act on the reasoning that since the assessee is a Charitable Trust registered u/s. 12A of the Act and eligible for exemption u/s. 11 of the Act, it is debarred from claiming exemption u/s. 10(34) and 10(35) of the Act. In so far as claim of exemption u/s. 11 of the Act is concerned, the AO did not allow such exemption stating that the assessee had violated the conditions of Section 13(1)(d) and 13(2)(h) of the Act. Accordingly, he completed the assessment without allowing assessee’s claim of exemption u/s. 10(34) and 10(35) of the Act as well as under Section 11 of the Act. Subsequent to completion of assessment, the AO passed an order u/s. 154 of the Act on 22.08.2019 levying surcharge on the tax payable. Against the order passed u/s. 154 of the Act, the assessee preferred an appeal before learned First Appellate Authority, which was dismissed.

4.

At the time of hearing, learned counsel appearing for the assessee submitted that if the main appeal of the assessee arising out of the assessment order is allowed in favour, this appeal would become infructuous.

5.

We have considered rival submissions and perused the materials on record. While deciding the main appeal of the assessee arising out of assessment completed u/s. 143(3) of the Act this Bench in and order dated 10.10.2025 has allowed assessee’s claim of exemption u/s. 10(34) and 10(35) of the Act in respect of dividend income and income from units. In view of that, the issues raised in the present appeal have become academic, hence, the appeal has become infructuous.

6.

In the result, appeal is dismissed.

Order pronounced in the open court on 13/10/2025.

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