UTTARANCHAL BAHUUDDESHIYA VITTA EVAM VIKAS NIGAM ,DEHRADUN vs. ITO, W- 1(1)(2), DEHRADUN

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ITA 127/DDN/2024Status: DisposedITAT Dehradun23 May 2025AY 2017-18Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI AVDHESH KUMAR MISHRA (Accountant Member)7 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 the assessee, being a Government Company, is eligible for exemption under Section 10(26B) of the Act. The Assessing Officer was directed to grant the exemption and recompute the income accordingly.

What were the facts?

The assessee, a Government Corporation, was denied exemption under Section 10(26B) of the Income Tax Act for AY 2017-18 by the Assessing Officer solely on the grounds of not filing a return. The assessee presented past assessment orders where similar exemptions were granted.

What were the issues?

Whether the assessee is eligible for exemption under Section 10(26B) of the Income Tax Act, and if non-filing of a return bars such exemption.

Which sections of the Income-tax Act were involved?

Section 10(26B),Section 139,Section 148,Section 143(3),Section 147,Section 144,Section 156

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “DB” NEW DELHI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI AVDHESH KUMAR MISHRA

For Appellant: Shri Rajeev Sahni, CA
For Respondent: Shri A.S. Rana, Sr. DR
Hearing: 08.05.2025

आदेश /O R D E R

PER C.N. PRASAD, J.M.

1.

1. This appeal is filed by the assessee against the order of the Ld. CIT(Appeals)-NFAC, Delhi dated 24.05.2024 for the AY 2017-18 in denying the exemption u/s 10(26B) of the Act and assessing the income of the assessee under the head “business” and also income from “other sources”.

2. Heard rival submissions, perused the orders of the authorities below. Perusal of the assessment order shows that the Assessing Officer denied exemption u/s 10(26B) of the Act for the reason that the assessee did not file return either u/s 139(1) or in response to notice issued u/s 148 of the Act. This is the only ground on which the contention of the assessee that its income is not taxable and is exempt u/s 10(26B) of the Act was denied. Ld. Counsel for the assessee referring to Paper Book pages 54 to 65 submitted that for the assessment years 2002-03, 2005-06 and 2020-21, the assessments were completed u/s 143(3) of the Act and the income of the assessee was treated as exempt u/s 10(26B) of the Act.

3.

We have perused the assessment orders of the assessee in the Paper Book placed at pages 54 and 55 and observed that the assessments for the assessment years 2002-03 and 2005-06 were completed as under: -

INCOME TAX DEPARTMENT

1.

Name of assessee : Uttaranchal Bahuuddesiiya Vitt Evam Vikas Nigam Sector-1, C-10, Defence Colony Dehradun 2. PAN/GIR NO. :

3. District/Ward/Circle : Circle-2, Dehradun.

4.

Status : Government Corporation

5.

Assessment Year : 2002-03

6.

Whether resident/ Resident But not Ordinarily resident/ Non-resident : Resident

7.

Method of accounting : Mercantile

8.

Previous Year : Year ending 31.03.2002 9. Nature of business :

10.

Date(s) of hearing: As per records

11.

Date of order :

12.

Sec. & sub-sec. under which the assessment is made : 143(3) of IT Act, 1961. ASSESSMENT ORDER

Return in this case was filed on 29.11.2003 on nil income. The case was processed w/s 143(1) of the I.T. Act 1961, on 14.01.2004. The case was selected under scrutiny in view of the CBDT instruction No 10(2)(3) dated 20.09.2004., as the assessee was claiming exemption of Rs. 31,50,401/- as exempt u/s 10(268) of the IT Act.

Therefore statutory notices u/s 143(2) was issued and served upon the assessee on 8-10-2004. In response to the notices Sh. Gurmeet Singh, Accountant of the Corporation attended. The case was discussed with him. The Uttaranchal Bahuddesiya Vitt Evam Vikas Nigam was formed 25-10-2001 by merging 1. Uttar Pradesh Anusuchit Jati Vitt Evam Vikas Nigam Ltd.

3. Uttar Pradesh Pichda Varg Vitt Evam Vikas Nigam Ltd. 3

The assessee is a Government Corporation formed for the welfare of the Schedule Castes and Schedule Tribes of the State of Uttaranchal. The income of which is exempt u/s 10(26B) of the I.T. Act. After discussion, assessed at nil income. Issue notices of demand and challan. Sd/- (Javed Akhtar) Asstt. Commissioner of Income Tax Circle-2, Dehradun.

Copy to Assessee. Sd/- ACIT, Circle-2, Dehradun. INCOME TAX DEPARTMENT 1. Name & Address of the assessee : Uttaranchal Bahuudeshiya Vtt. Vill. S. Nigam Ltd. Phase-1, Defence Colony, Vasant Vihar, Dehradun.

2.

PAN/GIR No. : AAACU6529K 3. District/Ward/Circle : DCIT, Circle-1, Dehradun 4. Status : Company 5. Year of Assessment : 2005-06 6. Whether Resident, Resident but : Resident not ordinarily resident, Resident 7. Previous Year : 2004-05 8. Date of hearing : As per records 9. Date of order : 23.10.2007 10. Section & sub-section under which : 143(3) of the Income Tax Act, the assessment is made 1961. ASSESSMENT ORDER The return of income was filed by the assessee on 30/01/2006 declaring total income of Rs Nil. The return was processed u/s 143(1) of the 1.T. Act, 1961 on 20/02/2006. Subsequently, the case was selected under scrutiny by the ACIT, Circle-2. Dehradun. Thereafter the case was assigned to the undersigned vide Commissioner of Income-tax, Dehradun's order F.No. CIT/DDN/Jurisdiction/2006-07/11250 dated 2/3/2007, Notice u/s 143(2) of the IT. Act was issued on 12/03/2007. In response to various Notices issued u/s 143(2) & 142(1) of 4

the LT. Act, Mr. G.K. Patet, Chartered Accounted alongwith Shri Gurmeet Singh attended from time to time and the case was discussed with them. Written replies were la file along with details. The books of account and documents were test checked. 2. The Uttaranchal Bahuddeshiva Vitt Evam Vikas Nigrin was formed on 25/10/2001 by merging: i. Uttar Pradesh Anusuchit Jati Vitt Evam Vikas Nigam Ltd.

3. The assessee is a Government Corporation formed for the welfare of the Schedule Castes and Schedule Tribes of the State of Uttaranchal. The assessee claiming exemption u/s 10(26B) of the I.T. Act, 1961. After discussion the assessment of the assessee is completed at NIL income u/s 143(3) of the I.T. Act, 1961. Issue Notice of demand and challan. Charge interest as per law, if any. Sd/- (Neeta Aggarwal) Dy. Commissioner of Income Tax(OSD) Range-1, Dehradun Copy to the assessee.

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