SHRI NARAYAN JAN KALYAN EWAM GRAMIN VIKAS SAMITI,BARNAHAL MAINPURI UP vs. ITO EXEMPTION GHAZIABAD, INCOME TAX OFFICE EXEMPTION GHAZIABAD

The appeal is time barred by 32 days. The assessee has filed an application for condonation of delay supported by an affidavit citing reasons causing delay in filing of appeal. After perusal of the same, I am satisfied that delay in filing of appeal is not intentional. The delay has been caused for the reasons stated in petition which appears to be bonafide. Thus, delay of 32 days in filing of appeal is condoned and appeal is admitted for decision on merits.

The ld. Counsel for the assessee submits that the assessee has all the relevant material to substantiate its claim of exemption. The assessee can furnish audited books of account, if an opportunity is granted. The ld. Counsel submits that in the immediate preceding assessment year i.e. AY 2016-17, the assessee’s claim of exemption u/s.10(23C) (iiiad) of the Act was accepted by the AO in assessment made under section 143(3) of the Act. The ld. AR referred to assessment order dated 26.12.2018 for AY 2016-17 at pages 107 to 109 of the paper book.

Per contra, Shri Manoj Kumar representing the department strongly supporting the impugned order submits that the assessee has filed its return of income in ITR-5, whereas, for claiming benefit of exemption u/s.10(23C) of the Act, the assessee was required to file its return of income in ITR-7. The assessee’s claim of exemption u/s.10(23C) of the Act cannot be entertained for filing return of income in wrong ITR Form. Further, no credible documentary evidences were

Both sides heard, orders of the authorities below examined. The assessee is a society engaged in running educational institutions. For the subsequent assessment years i.e. AY 2022-23 to 2026-27 the Department has granted initial registration u/s.12A of the Act to the assessee, this fact is not in dispute. The short submission of the Counsel for the assessee is that even though the assessee was not registered u/s.12A of the Act in AY 2017-18, the assessee was eligible for claiming exemption u/s.10(23C) of the Act. From perusal of the impugned orders, it emanates that the assessee has failed to furnish relevant complete details and audited accounts for determining assessee’s claim of exemption u/s.10(23C)(iiiad) of the Act in the impugned assessment year. The CIT(A) in First Appellate proceedings has further pointed that the return of income has been filed by the assessee in ITR-5 instead of ITR-7 for claiming such exemption. The ld. Counsel for the assessee has prayed for an opportunity to furnish complete details and audited accounts. Considering entire facts of the case, I deem it appropriate to grant one opportunity to the assessee to furnish relevant details and audited accounts before the AO. So that the assessee’s claim of exemption u/s.10(23C)(iiiad) of the Act can be reconsider. In so far as infirmity pointed by the CIT(A) in filing of return in ITR-5 instead of ITR-7, it is a procedural defect and the relevant information for claiming exemption u/s.10(23C) of the Act if available on record can be considered by the AO.

The assessee shall furnish all the relevant details and audited books of account before the Assessing Officer in support of its claim of exemption

In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose.