INCOME TAX OFFICER, EXEMPTIONS WARD, AURANGABAD, AURANGABAD vs. SAVITRIBAIPHULE SHIKSHAN PRASARAK MANDAL, BEED

IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCHES “B”, PUNE

BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER
AND SHRI VINAY BHAMORE, JUDICIAL MEMBER

आयकर अपील सं. / ITA No.2384/PUN/2024
Assessment Year : 2019-20
C/o. Gurukul English School,
Jalna Road, Beed 431 122
Maharashtra
PAN : AACAS7424H
Appellant
Respondent

आदेश / ORDER

PER DR. MANISH BORAD, ACCOUNTANT MEMBER :

This appeal filed by the Revenue pertaining to the Assessment Year 2019-20 is directed against the order dated
03.10.2024 passed by the National Faceless Appeal Centre,
Delhi passed u/s.250 of the Income-tax act, 1961 (in short ‘the Act’) which inturn is arising out of the Rectification order u/s.154 of the Act.

Assessee by :
None
Revenue by :
Shri Arvind Desai
Date of hearing
:
08.01.2025
Date of pronouncement
:
17.01.2025
Savitribai Phule Shikshan
Prasarak Mandal

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2. Tersely, facts of the case are that the assessee is a trust running the educational institutions which furnished Nil income in the return of income filed for the A.Y. 2019-10. The said return was subsequently revised u/s.139(5) of the Act on 30.08.2019. The CPC vide its order u/s.143(1) processed the return rejecting the claim made by the assessee u/s.10(23C) of the Act at Rs.4,85,92,788/-. Being aggrieved by the intimation order denying the said claim, the assessee filed the rectification application u/s.154 of the Act but the assessee failed to succeed on the ground that the assessee has not furnished the Audit report in Form No.10BB within the stipulated time in Rule 16CC of the Income Tax Rules, 1962. 3. Dissatisfied assessee carried the matter before the ld.CIT(A) and the ld.CIT(A) allowed the exemption claimed by the assessee u/s.11 and 12 of the Act by observing as under :

“5. Observation and Decision:
In Ground Nos. 1 and 2, the Appellant has contested the order u/s 154 of the IT act, 1961 dated 30-03-2023 for the A.Y. 2019-20 of the AO of rejecting the claim of exemption u/s 11 and 12 of the Act. Both these grounds are taken up together for the sake of convenience. I have carefully considered the submissions made by the Appellant. It is observed that the Appellant filed ROI for the A.Y. under consideration on 27-08-2019. The Appellant filed Revised Return on 30-08-2019. Vide order u/s 143(1), the claim of exemption of the Appellant to the extent of Rs 4,85,92,788/- was rejected by the AO.
The Appellant filed rectification petition u/s 154 but the petition was Savitribai Phule Shikshan
Prasarak Mandal

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rejected by the AO vide order u/s 154 dated 30-03-2023. The AO rejected the claim by holding that the Appellant has given the details of registration u/s 10(23c)(vi) details of registration u/s 10(23c) (vi) and therefore the Appellant was required to submit the Audit Report in Form 10BB. It is observed that the Appellant had submitted Audit
Report in Form 10B duty certified by a Chartered Accountant. It is also further observed that the Appellant is also registered u/s.12AA vide registration No. PN/CIT/(Exempt)/TECH/12AA /A'bad/RG1153
/313/2016-17/1007 dated 25-04-2016. It is further observed that receipts and expenditures made for charitable purpose indicates that the expenditure is more than 85% of the total receipts on the aims and objectives of the trust and the amount set apart for charitable purpose does not exceed 15% of the total receipts. Therefore, it can be concluded that by virtue of registration u/s.12AA also, the Appellant is entitled to a claim of exemption u/s. 11 and 12 as all the criteria have been satisfactorily fulfilled by Appellant trust. Denial of exemption would be unfair and against the principles of natural
Justice and equity. In view of the above, the AO was not justified in denying the claim of exemption and the AO is hereby directed to allow the claim of exemption u/s.11 & 12 of the Act. These grounds are allowed.

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6. We have heard the ld. Departmental Representative and perused the record placed before us. The sole issue in controversy is that the assessee furnished the Audit Report in Form 10B certified by the Chartered Accountant instead of Form 10BB. We find the CPC rejected the claim made by the assessee u/s.10(23C) of the Act only on technical issue, which is uncalled for. The ld.CIT(A) has rightly considered all the aspects viz, registration u/s.12A and application of income for the charitable purposes while granting exemption u/s.11 of the Act. We therefore find that the order passed by the ld.CIT(A) is in conformity with the principles of natural justice. We therefore uphold the same and dismiss the grounds raised by the Revenue.

पुणे / Pune;
दनांक / Dated : 17th January, 2025. Satish
Savitribai Phule Shikshan
Prasarak Mandal

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आदेश क ितिलिप अ ेिषत / Copy of the Order forwarded to :

//// Senior Private Secretary

आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.