SECRETARY UP SAINIK PUNARVAS NIDHI,LUCKNOW vs. DCIT(EXAMPTION) WARD, LUCKNOW
What did the Tribunal hold?
The Tribunal noted that the issue of not filing Form-9A due to accumulated income being below 15% was not considered by the lower authorities. Therefore, the matter was restored to the Assessing Officer for verification and fresh assessment.
What were the facts?
The assessee, a society registered under the Societies Registration Act, 1860, filed its return declaring NIL income. The claim u/s 11 was disallowed by the CPC and the CIT(A) dismissed the appeal. The assessee contended it was not required to file Form-9A as accumulated income was below 15% of gross receipts.
What were the issues?
Whether the assessee was required to file Form-9A given the accumulated income was below 15% of gross receipts, and if not, whether the disallowance was justified.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, LUCKNOW BENCH ‘B’, LUCKNOW
Before: SHRI ANADEE NATH MISSHRA & SHRI SUBHASH MALGURIA
2017-18 against impugned appellate order dated 29/02/2024 (DIN & Order No.ITBA/APL/S/250/2023-24/1061710188(1) passed by learned Addl/JCIT(A), Bengaluru [“Addl/JCIT(A)” for short].
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.
(Order pronounced in the open court on 28/08/2025)
More judgments on Section 11
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- Sweekar, Nagpur vs ITO Ward 1, Exemp, NagpurITA 530/NAG/2026[2019-20]Status: Disposed14 Oct 2026AY 2019-20
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