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Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA
Before: SRI RAJPAL YADAV & SRI RAJESH KUMAR
order
: November 19th, 2024 ORDER
Per Rajpal Yadav, Vice-President:
The assessee is in appeal before the Tribunal against the order of the Commissioner of Income Tax (Appeals)-1, Gurugram [hereinafter referred to as ld. 'CIT(A)'] dated 15.07.2024 passed for AY 2022-23. 1.1. The assessee has taken 7 grounds of appeal but its grievances revolve around a single issue namely ld. CIT(A) has erred in upholding the determination of gross income at Rs. 5,73,24,801/-. This figure was determined by the Assessing Officer-NFAC (hereinafter referred to as ld. 'AO')
I.T.A. No.: 1908/KOL/2024 Assessment Year: 2022-23 Institute for Steel Development and Growth. in an assessment u/s 143(1) of the Income Tax Act, 1961 (in short the 'Act') by CPC, Bangalore. The ld. AO did not grant benefit of Section 11 of the Act on the ground that report in Form-10B was not submitted by the assessee before the due date of filing of the income tax return which was a mandatory condition. 1.2. It is pertinent to note that assessee is a society established by the Govt. of India (Ministry of Steel) and the major steel companies are its members. It has filed its return of income. However, it failed to file the report in Form-10B before filing of the return. The CPC while processing this return has disallowed the exemption claimed u/s 11 of the Act by the assessee. 1.3. The assessee has filed an application u/s 119(2)(b) of the Act for condonation of delay in filing alleged audit report in Form-10B. Such application has been placed on the record. As per the ld. Counsel for the assessee this application is still pending.
With the assistance of ld. representatives, we have gone through the record carefully. A perusal of paragraph no. 4.1.6 of ld. CIT(A)’s order would indicate that ld. CIT(A) has also apprise the assessee to pursue its case with the jurisdictional Commissioner of Income Tax (Exemption). The observations in this paragraph read as under: “4.1.6 The appellant has already filed its request for the condonation of the delay in filing Form 10B, it is requested to pursue the same with the jurisdictional Commissioner of Income Tax, (Exemption), for the condonation to claim the benefits of Sections 11 and 12 of the IT Act.”
When we confront the above observation of the ld. CIT(A), ld. D/R was unable to controvert it. On due consideration of the above aspect, we deem it appropriate to set aside both the orders and remit this issue to the file of ld. AO. Ld. AO shall ascertain the status of assessee’s application for condonation of delay in filing the report in Form-10B and thereafter re-determine the income after providing due opportunity of hearing to the assessee.