P. RAMNATH SHARMA SHIKSHA SWASTHYA AVAM SAMAJ KALAYAN SAMITI,TIKAMGARH vs. INCOME TAX OFFICER EXEMPTION WARD , GWALIOR,

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ITA 401/AGR/2024Status: DisposedITAT Agra22 April 2025AY 2020-21Bench: HON’BLE SHRI SATBEER SINGH GODARA (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that a mere mistake in filling the relevant columns of the income tax return should not deprive the assessee of a legitimate claim if they are otherwise eligible. Principles of natural justice necessitate granting another opportunity to the assessee to prove its claim.

What were the facts?

The assessee, an educational society, filed its tax return claiming exemption under section 10(23C) for AY 2020-21. The return was processed under section 143(1), and a subsequent rectification sought by the assessee disallowed claimed expenses. The CIT(A) upheld this disallowance, citing that the necessary claims were not made in the relevant columns.

What were the issues?

Whether a procedural mistake in filling tax return columns should lead to the disallowance of a legitimate claim. Whether the assessee should be granted an opportunity to prove its eligibility for deduction.

Which sections of the Income-tax Act were involved?

Section 10(23C),Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH, AGRA

Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Pronounced: 22.04.2025

(िनधा�रणवष� / Assessment Year:2020-21) P. Ramnath Sharma Shiksha Income-tax Officer, बनाम/ Swasthya Avam Samaj Kalyan Samiti Exemption Ward, Vs. Tikamgarh (MP) Gwalior. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AABAP-7063-L (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Abhijeet Shrivastava, Adv.-Ld. AR � थ�कीओरसे/Respondent by : Sh. Shailender Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 21-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2020-21 arises out of an order passed by learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] on 14-08-2024 in the matter of an rectification intimation issued by CPC on 24-02-2023. It transpired that the assessee is an educational society and it had gross receipts of Rs.95.58 Lacs. The assessee filed its tax return on 06-01-2021 claiming exemption u/s 10(23C). The return of income was processed u/s 143(1). The assessee sought rectification of the same wherein the expenses as claimed by the assessee were disallowed. The Ld. CIT(A) upheld the same on the ground that necessary claim in the relevant columns was not made by the assessee. Therefore, there was no question of granting the same to the assessee. Aggrieved, the assessee is in further appeal before us.

2.

We are of the considered opinion that mere mistake in filling the relevant columns in income tax returns could not deprive the assessee of its legitimate claim provided the assessee is otherwise eligible to claim the impugned deduction. Keeping in mind the principles of natural justice, we deem it fit to grant another opportunity of hearing to the assessee to plead and prove its claim of deduction which shall be considered by Ld. CIT(A) without going into the fact that there was mistake in filling the relevant columns in the Income Tax Return. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for de novo adjudication after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith.

3.

The appeal stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.

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