INSOLVENCY PROFESSINAL AAGENCY OF INSTITUTE OF COST ACCOUNTANTS OF INDIA,DELHI vs. ITO,WARD EXEMPTION, DELHI

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ITA 4605/DEL/2024Status: DisposedITAT Delhi22 April 2025AY 2019-20Bench: Sh. Satbeer Singh Godara (Judicial Member)2 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, relying on precedent, ruled that the requirement to upload Form 9A by the due date of filing the return is directory, not mandatory, for claiming Section 11 exemption. Consequently, the assessee's sole substantive ground was accepted, and the appeal was allowed, subject to the Assessing Officer re-computing the income after verifying all relevant facts.

What were the facts?

The assessee's Section 11 exemption claim for AY 2019-20 was rejected by lower authorities because Form 9A was not uploaded on or before the due date for filing the Section 139(1) return. The assessee filed its return on October 31, 2019, and uploaded Form 9A the following day, November 1, 2019.

What were the issues?

Whether a one-day delay in uploading Form 9A after filing the return, but before the due date, should lead to rejection of Section 11 exemption, and if the Form 9A uploading requirement is mandatory or directory.

Which sections of the Income-tax Act were involved?

Section 11,Section 139(1),Section 154

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Satbeer Singh Godara

Hearing: 22.04.2025Pronounced: 22.04.2025

Asstt. Year : 2019-20 Insolvency Professional Agency of Vs Income Tax Officer, Institute of Cost Accountants of Ward Exemption, India, 4th Floor, 3rd Institutional E-2 Block, Civic Centre, Area, Lodhi Road, New Delhi-110003 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AAECI3186J Assessee by: Sh. Ruchesh Sinha, Adv. Revenue by : Sh. Sanjay Kumar, Sr. DR Date of Hearing: 22.04.2025 Date of Pronouncement: 22.04.2025 ORDER

This assessee’s appeal for Assessment Year 2019-20, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1067326979(1) dated 05.08.2024, in proceedings u/s 154 of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

A perusal of the instant case file at the outset reveals that both the learned lower authorities have rejected the assessee’s section 11 exemption claim on the ground that it had not uploaded the corresponding relevant Form 9A, on or before the “due” date of filing section 139(1) return. It is made clear that the assessee filed it’s return within the due date on 31.10.2019

4.

That being the clinching factual position emerging from the case file, learned departmental representative vehemently argues that the assessee had failed to comply with the foregoing mandatory requirement. The tribunal finds no merit in the instant technical objection as CIT Vs. Xavier Kelavani Mandal (P.) Ltd. (2014) 41 taxmann.com 184 (Guj.) already settling the issue in assessee’s favour and against the department that such a compliance is directory than mandatory provision for the purpose of claiming section 11 exemption. The assessee instant sole substantive ground is accepted in principle therefore subject to a rider that the learned Assessing Officer shall re-compute it’s income as per law after verification of all the relevant facts.

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