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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE
आयकर अपीलीयअधिकरण, विशाखापटणम SMC पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री दुव्िूरु आर एल रेड्डी, न्याययक सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER (Through Hybrid Hearing) आयकर अपील सं./ (निर्धारण वर्ा / Assessment Year : 2021-22) Chaitanya Sravanthi, Vs. The Income Tax Officer, Visakhapatnam. Exemption Ward, PAN: AACTS 3227 K Visakhapatnam. (अपीलधर्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधर्थी की ओर से/ Appellant by : Sri GVN Hari, AR प्रत्यधर्थी की ओर से / Respondent by : Dr. Aparna Villuri, Sr. AR सुिवधई की तधरीख / Date of Hearing : 04/03/2024 घोर्णध की तधरीख/Date of : 14/03/2024 Pronouncement O R D E R PER DUVVURU RL REDDY, Judicial Member :
This appeal filed by the assessee is against the order of the Ld. CIT(A)-9, Mumbai in DIN & Order No. ITBA/APL/S/250/2023- 24/1059090534(1), dated 21/11/2023 arising out of the order passed U/s. 143(1) of the Income Tax Act, 1961 for the AY 2021- 22.
2 2. Briefly stated relevant facts of the case are that the assessee is stated to be a Trust being registered U/s. 12A of the Act, filed its return of income for the AY 2021-22 on 4/1/2022 admitting NIL income after claiming exemption U/s. 11 of the Act. Thereafter, the assessee’s return of income was processed by the CPC and Intimation U/s. 143(1) of the Act was issued on 23/08/2021 wherein the Ld. AO disallowed the exemption U/s. 11 of the Act and the total income of the assessee was determined at Rs. 27,86,845/- thereby raising a demand of Rs. 8,23,200/- which includes interest U/s. 234B and 234C of the Act. While disallowing the exemption claimed by the assessee, the Ld. AO observed that while filing the return of income the assessee did not provide the details of new registration / approval obtained U/s. 12AB of the Act. Thereafter, the assessee filed rectification petition and the same was dispose of by the Ld. AO by passing order U/s. 154 of the Act wherein the Ld. AO sustained the disallowance made in the Intimation U/s. 143(1) of the Act and determined the same total income at Rs. 27,86,845/-. Aggrieved by the Intimation passed U/s. 143(1) as well as the rectification order of the Ld. AO passed U/s. 154 of the Act, the assessee preferred an appeal before the Ld. CIT(A)-9, Mumabi with a delay of 99 days. On appeal, the Ld. Addl/JCIT (A), Mumbai dismissed the appeal filed by the assessee.
3 On being aggrieved, the assessee is in appeal before the Tribunal by raising the following grounds of appeal:
“1. The order of the Ld. CIT(A) is contrary to the facts and also the law applicable to the facts of the case.
The Ld. CIT(A) is not justified in dismissing the appeal filed against the Intimation dated 23/08/2022 U/s. 143(1) of the Act as not maintainable on the ground that the appellant also filed appeal against the rectification order passed on 5/12/2022 U/s. 154 of the Act.
3. The Ld. CIT(A) ought to have held that the disallowance of exemption of Rs. 27,86,845/- claimed by appellant U/s. 11 of the Act is outside the scope of adjustments that can be made U/s. 143(1) of the Act.
Without prejudice to the above, the Ld. CIT(A) ought to have directed the Assessing Officer to allow the exemption of Rs. 27,86,845/- claimed by the appellant U/s. 11 of the Act.
5. Without prejudice to Ground No.3 and Ground No.4, the Ld. CIT (A) ought to have directed the Assessing Officer to allow the expenditure of Rs. 27,86,845/- actually incurred by the appellant.
6. Any other ground may be urged at the time of hearing.”
At the outset, the Ld. Authorized Representative [AR] reiterated the submissions made before the Ld. Revenue Authorities. The Ld. AR further drawn my attention to page No.51 of the paper book filed before the Tribunal and submitted that the assessee got new approval of Registration in Form No.10AC of the Act, dated 8/2/2022 and therefore prayed to remit the matter back to the file of the Ld. AO to consider the registration and to allow the claim made by the assessee in its return of income.
4 4. On the other hand, the Ld. Departmental Representative [DR] strongly relied on the orders of the Ld. Revenue Authorities and supported the decision taken by them.
I have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities. It is an undisputed fact that the assessee has claimed exemption U/s. 11 of the Act being a Trust registered U/s. 12A of the Act. But while filing the return of income it was observed by the Ld. AO / CPC that the assessee has not filed the details of new registration / approval obtained U/s. 12AB of the Act. On appeal, the Ld. CIT(A) dismissed the appeal of the assessee as inadmissible. Now, before the Tribunal, the assessee has filed a copy evidencing the new approval for registration U/s. 12AB of the Act vide page No. 51 of the paper book. Therefore, considering the facts and circumstances of the case as well as considering the prayer of the Ld. AR, I hereby remit the matter back to the file of the Ld. AO to examine the new approval filed before the Tribunal (Form 10AC, Page 51 of the paper book) and decide the issue afresh after affording a reasonable opportunity of being heard to the assessee as per the principles of natural justice and in accordance with law.
5 Accordingly, grounds raised by the assesse are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes as indicated herein above.
Pronounced in the open Court on 14th March, 2024.