SECRETARY UP SAINIK PUNARVAS NIDHI,LUCKNOW vs. DCIT(EXAMPTION) WARD, LUCKNOW

The facts of the case, in brief, are that the assessee society is registered under the Societies Registration Act, 1860 and engaged in welfare of retired Army personnel and their families. The assessee filed its return of income on 06/02/2018 declaring total income at NIL. The case of the assessee was processed by Central Processing Cell and the claim u/s 11 of the Act was disallowed. Being aggrieved, the assessee went in appeal before the CIT(A), who has dismissed the appeal of the assessee. Aggrieved further, the assessee has filed the present appeal before the Income Tax Appellate Tribunal.

During the course of hearing in Income Tax Appellate Tribunal, none was present on behalf of the assessee. In absence of any representation from assessee’s side, learned D.R. was heard and the materials available on record were perused. On perusal of grounds of appeal, it is found that the assessee has contended that the assessee was not required to file Form-9A as the accumulated income of the assessee was well below 15% of the gross receipts. This aspect has not been considered by the learned CIT(A) in his impugned order. Further this aspect was also not taken into cognizance by the Central Process Cell while processing the return u/s 143(1) of the Act. In view of the foregoing, the issue in dispute is restored back to the file of the Assessing Officer with the direction to verify the claim of the assessee whether the assessee was actually not required to file Form- 9A as the accumulated income of the assessee was below 15% of the gross receipts and pass order afresh in accordance with law after providing reasonable opportunity of being heard to the assessee.

In the result, the appeal of the assessee stands allowed for statistical purposes.