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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD
Before: Ms. SUCHITRA KAMBLE
This appeal is filed by the Assessee against the order dated 27.03.2019 passed by the CIT(A)-5, Vadodara for the Assessment Year 2014-15.
The assessee has raised the following grounds of appeal :-
“1. In the facts and in the circumstances of the case and in law the learned Assessing Officer has erred in making addition of Rs.6,86,910/- on account of best judgement assessment/s 144 of Income Tax Act, 1961 and treating Trust as AOP even though the Appellant is registered u/s. 12AA just because audit report in 10B is filed late.
2. In the facts and circumstances of the case and in law, the Commissioner of Income Tax (A) erred in rejecting Appeal by not appreciating the submissions made by the Appellant.
3. in the facts and circumstances of the case and in law, the AO erred in charging interest u/s. 234B & C.”
The assessee is a public trust registered under Bombay Public Trust Act, 1950. The assessee filed return of income on 18.01.2015 declaring total
Page 2 of 3 income at Rs.32,300/-. The case was selected for scrutiny and accordingly various statutory notices were issued to the assessee. After considering the submissions of the assessee, the Assessing Officer completed the assessment under Section 143(3) of the Income Tax Act, 1961 on 07.12.2016 thereby addition of Rs.7,19,210/- in respect of gross receipt as per income and expenditure account. The assessment order was passed ex-parte/best judgement assessment under Section 144 of the Act.
Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee on the ground that necessary statutory conditions were not made and the Trust is not eligible for exemption under Section 11 of the Act.
The Ld. AR submitted that on 20.07.2011 the assessee was granted registration/exemption under Section 11 & 12 of the Act. The Ld. AR further submitted that Form no.10B was filed on 14.04.2015 belatedly but the CIT(A) has not taken cognisance of the same. Ld. AR relied upon the decision of ITAT Pune Bench in the case of DCIT (Exemptions) vs. Audyogik Shikshan Mandal (2022) 139 Taxman.com 28 (Pune Tribunal).
Ld. DR relied upon the Assessment Order and the order of the CIT(A)
Heard both the parties and perused all the relevant material available on record. It is pertinent to note that except filing of belated Form No.10B, all the relevant conditions were fulfilled by the assessee as the Trust is registered under Section 12AA of the Act w.e.f. 26.03.2010. The Tribunal, in the case of Audyogik Shikshan Mandal (supra) clearly observed that if Form No.10B is available on record, the same should be taken into account and exemption cannot be denied to the assessee under Section 11 of the Act. In the present case also the assessee has fulfilled all the relevant conditions which are required for claiming exemption except filing Form No.10B and Audit Report at the relevant time but the same was filed at a later stage and was available with the CIT(A) as well as before the Assessing officer. Therefore, the Assessing
Page 3 of 3 Officer as well as the CIT(A) was not right in making addition and denying the exemption under Section 11 of the Act. Appeal of the assessee is, therefore, allowed.
In the result, appeal of the assessee is allowed.
Order pronounced in the open Court on this 30th day of November, 2022.