ITO (EXEMPTIONS) ROHTAK , ROHTAK vs. MANOHAR EDUCATION SOCIETY , HARYANA

ITA 2672/DEL/2022Status: DisposedITAT Delhi30 July 2024AY 2019-204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted the discrepancy between the exemption claimed by the assessee (Section 10(21)) and the sections considered by the CIT(A) (10(23A), 12A, 10(23C)(iiiad)). It also observed that the assessee's Section 12A registration was effective from 19.06.2020, making it potentially inapplicable to A.Y. 2019-20. Finding the CIT(A)'s order cryptic and non-speaking, the Tribunal remitted the matter back to the CIT(A) for a speaking order after considering all relevant facts and providing the assessee an opportunity to present its case.

What were the facts?

The assessee-society filed its return of income for A.Y. 2019-20 claiming exemption under Section 10(21) of the Income Tax Act. The AO denied the exemption, leading to an addition of Rs. 4,97,25,225. On appeal, the CIT(A) reversed the AO's order, granting relief based on the assessee's registration under Section 12A and eligibility under Section 10(23C)(iiiad).

What were the issues?

Whether the CIT(A) was justified in allowing exemption, considering the conflicting claims of exemption sections and the effective date of the assessee's 12A registration, and whether the CIT(A)'s order was a speaking order after considering all relevant facts.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 12AA,Section 10(23C)(vi),Section 11,Section 12,Section 139(4C),Section 10(21),Section 10(23A),Section 12A,Section 35(1)(iii)

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Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI

For Respondent: Shri Jatender Kumar Kale, Sr. D.R
Hearing: 30.07.2024Pronounced: 30.07.2024

PER PRADIP KUMAR KEDIA, AM :

The captioned appeal has been filed by the Revenue against the first appellate order of the Ld. Commissioner of Income Tax (Appeals) – National Faceless Appeal Centre (NFAC), Delhi dated 16.09.2022 arising from the assessment order dated 27.05.2020 passed by the AO-CPC, Bangalore (hereinafter referred to as ‘AO’) under Section 143(1) of the Income Tax Act, 1961 (the Act) concerning Assessment Year 2019-20. 2. The grounds of appeal raised by the assessee reads as under:

“1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A), NFAC is justified in deciding that the assessee be treated as registered trust though the trust was not registered under section 12AA or 10(23C)(vi) of the Income T

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