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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: SHRI P.M. JAGTAP, VICE- & Ms. SUCHITRA R. KAMBLE
आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद "यायपीठ आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण अहमदाबाद "यायपीठ अहमदाबाद "यायपीठ ‘बी’ अहमदाबाद। अहमदाबाद "यायपीठ अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD ] ] BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT AND Ms. SUCHITRA R. KAMBLE, JUDICIAL MEMBER Assessment Year : 2014-15 Shri Bavish Gam Patidar The ACIT, Samaj Seva Trust, Vs CPC, Opp. Mahi Canal Colony, Dakor Bangalore Road, Mahudha-387335 PAN : AABTS 2835 A अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee by : Shri Mehul K. Patel, Advocate Revenue by : Shri Alok Kumar, CIT-DR सुनवाई क" तार"ख/Date of Hearing : 07/07/2022 घोषणा क" तार"ख /Date of Pronouncement: 13/07/2022 आदेश/O R D E R PER P.M. JAGTAP, VICE-PRESIDENT :
This appeal filed by the assessee is directed against the order of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [“CIT(A)” in short] dated 16.07.2021 and the grievance of the assessee is projected therein by way of the following grounds:-
“1. That the learned CIT(A), NFAC has grievously erred in law, and on facts, in holding that the adjustment made u/s 143(1) of the Act by CPC is valid. 2. That the learned CIT(A), NFAC ought to have considered the Registration Certificate of the appellant u/s 12AA of the Act and ought to have deleted the disallowance of Rs.61,42,572/- made u/s 11 of the Act by CPC. Shri Bavish Gam Patidar Smaj Seva Trust Vs. ACIT AY : 2014-15 2
3. That on facts and in law, the entire disallowance made by CPC ought to have been deleted and the returned income of Rs.(-) 4,92,888/- ought to have been accepted as prayed for.”
The assessee, in the present case, is a Public Charitable Trust registered under Bombay Public Trust Act. It is also registered under Section 12AA of the Income-tax Act, 1961 [“the Act” in short]. The return of income for the year under consideration was filed by it on 29.01.2016 declaring a deficit of Rs.(-) 4,92,888/-, after claiming exemption under Section 11 of the Act. In the said return, the number of Registration Certificate granted under Section 12AA of the Act was not given by the assessee and while processing the same under Section 143(1) of the Act vide an order dated 29.01.2016, the CPC Bangalore disallowed the claim of the assessee for exemption under Section 11 of the Act and determined the total income of the assessee at Rs.56,49,684/-. Against the order dated 29.01.2016 passed by the CPC, Bangalore under Section 143(1) of the Act, an appeal was filed by the assessee before the learned CIT(A). During the course of appellate proceedings before the learned CIT(A), the following submission in writing was filed by the assessee on-line.
"The Trust is in receipt of above notice issued u/s 250 of the ct asking us to file written submission on or before 14/07/21. Accordingly we furnished our submission as under, (11 Facts of the case- The Appellant is a Public Charitable Trust registered under Bombay Public Trust Act having registration No-Kheda E 3497. The Trust is also registered u/s 12AA of the act having registered on 26/06/2009 by Commissioner of Income Tax (II) Baroda (Copy of Registration Certificate Attached). The Trust is also granted 80G Certificate.
Return of Income was filled on 29/01/16 along with Form No 108 for a deficit of 492888. The Copy of the Computation Sheet, Acknowledgement of Shri Bavish Gam Patidar Smaj Seva Trust Vs. ACIT AY : 2014-15 3 return, Return of Income and Audited balance sheet and Income & Expenditure A/c is attached. In the return of income the deduction u/s 11 was claimed and from gross total income as taken from credit side of Income & Expenditure account, the expenses debited in Income & Expenditure account was deducted and accordingly gross total income as stated above is taken in the computation sheet and in the return.
The CPC Bangalore has passed on order u/s 143(1) of the ad on 29/01/2016 disallowing claim u/s. 11 of the Act (copy attached). Thus the CPC Bangalore has wrongly disallowed the claim and wrongly assessed total income at Rs. 56,49,684/- and raised in demand of Rs.24,84,303/-.
However, on receipt of the intimation, we found that the 12AA certificate though the trust have but in the return it is slated as no and no was not given, the bonafide mistake is occurred, So the trust filled rectification application on 20/05/16 and according to our records, the CPC has rectify the order passed on 06/10/16 and flowed the claim U/S 11 of the act and determine Nil income and refund was granted. With the rectification application we filed revised return and in it 12A certificate no was given copy enclosed.
However in between the time of receiving the intimation U/S 143(1) dated 29/01/16 and rectification order dated 06/10/16 The Appeal was filed on 13/06/16.”
After considering the submission made by the assessee as above, the learned CIT(A) passed an order dated 16.07.2021 dismissing the appeal of the assessee by observing as under:-
“4. I have considered the orders u/s 143(1) passed by the CPC, Bangalore and submission filed by the appellant. In its submission, the appellant mentioned that the CPC has rectified the order passed on 06.10.2016 and allowed the claim u/s 11 of the Act and determine Nil income and refund was granted.
4.1 In this case, it is an accepted fact by the appellant that the appellant had not filed 12AA registration number in the return of income. Therefore, the CPC has rightly treated the assessee as not registered under 12AA and therefore disallowed the claim of exemption u/s 11 of the Act. Therefore, the order u/s 143(1) is upheld.” Shri Bavish Gam Patidar Smaj Seva Trust Vs. ACIT AY : 2014-15 4 Aggrieved by the order of the learned CIT(A), the assessee has preferred this appeal before the Tribunal.
We have heard the arguments of both the sides and also perused the relevant material available on record. It is observed that there was a bonafide mistake committed by the assessee in not giving its 12AA Registration Certificate Number in the return of income filed for the year under consideration; and, when its claim for exemption under Section 11 of the Act was disallowed by the CPC Bangalore for want of the said number vide an order dated 29.01.2016 passed under Section 143(1) of the Act, rectification application was filed by the assessee on 20.05.2016 pointing out the said mistake. The said application was duly allowed by the CPC, Bangalore vide an order dated 06.10.2016 and the claim of the assessee for exemption under Section 11 of the Act was allowed. In the written submission filed before the learned CIT(A) on-line, this development was brought to the notice of the learned CIT(A) by the assessee. As a result of this development, which had taken place after the filing of appeal by the assessee before the learned CIT(A), the grievance of the assessee was duly addressed by the CPC, Bangalore as per the rectification order passed on 06.10.2016 and since the order dated 29.01.2016 passed under Section 143(1) of the Act had already merged with the rectification order passed by the CPC, Bangalore on 06.10.2016 whereby the relief claimed by the assessee by way of exemption under Section 11 of the Act was already allowed, the appeal filed by the assessee against the order dated 29.01.2016 passed under Section 143(1) of the Act had become infructuous as agreed by the learned representatives of both the sides. In our opinion, the learned CIT(A) accordingly ought to have dismissed the said appeal as infructuous instead Shri Bavish Gam Patidar Smaj Seva Trust Vs. ACIT AY : 2014-15 5 of deciding the same on merit upholding the order passed under Section 143(1) of the Act. We accordingly modify the impugned order passed by the learned CIT(A) and allow this appeal of the assessee.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open Court on 13th July, 2022 at Ahmedabad. (SUCHITRA R. KAMBLE) VICE-PRESIDENT Ahmedabad, Dated 13/07/2022 *Bt