DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS) LUCKNOW, LUCKNOW vs. BIOVED RESEARCH SOCIETY, ALLAHABAD

Revenue for assessment year 2011-12 against impugned appellate order dated 21/07/2023 (DIN & Order No.ITBA/NFAC/S/250/2023-24/1054526066(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. In this appeal Revenue has raised the following grounds:

(1) “That the learned CIT(A) has erred in deleting the addition of Rs.38,68,650/- made by the Assessing Officer.

(2) That the learned CIT(A) has erred in law as well as fact by allowing the appeal of the assessee despite the order of withdrawal of approval u/s 35(1)(ii) of the IT Act in the case of the assessee.

(3) That the assessee has misrepresented the facts in front of learned CIT(A) by not disclosing that CBDT has withdrawn its approval u/s 35(1)(ii) of the IT Act.

(4) That the order of learned CIT(A) is ultra vires the order of CBDT issued vide notification no. 15/2008 dated 25/01/2019, which is bad in law and falls under exception mentioned in point 10(b) of Circular no. 03/2018 dated 11/07/2019.

(5) That the order of learned CIT(A) be cancelled and the order of Assessing Officer be restored.”

(B) The facts of the case, in brief, are that the assessee society is duly registered under the Society Registration Act, 1856 which has been renewed at regular intervals. The assessee society is also registered with the Commissioner of Income Tax, Allahabad under section 12AA of the Act. The assessee society is approved u/s 35(1)(ii) of the Act from prescribed authority of Central Government. The Assessing Officer completed the assessment at a total income of Rs.38,68,650/- and the same was added to the income of the assessee on the ground that since certificate of registration u/s 12A of the Act has not been produced by the assessee, hence benefit of section 11 is not being allowed and amount of Rs.38,68,650/- was treated as total income and taxed accordingly. Aggrieved, the assessee carried the matter in appeal before the learned CIT(A) who, allowed relief to the assessee observing that since the assessee’s registration have been restored by the ITAT, the assessee society’s income is to be assessed as provided u/s 11/12A of the IT Act . The present appeal has been filed by Revenue against the aforesaid impugned appellate order.

(C) At the time of hearing before us, it was observed, on perusal of Form- 36 in which the appeal has been filed, that the total tax effect is stated to be Rs.10,45,880/-. The aforesaid amount of Rs.10,45,880/- is below the minimum limit of Rs.60,00,000/-, as instructed by Central Board of Direct Taxes, for filing the appeal in Income Tax Appellate Tribunal against order of the learned CIT(A). Representatives of both sides, the learned Sr. D.R. for Revenue and the learned A.R. for the assessee were in agreement that the tax effect being below the minimum prescribed limit of Rs.60,00,000/-, this appeal is not maintainable and should be dismissed.

(D) In view of foregoing and as representatives of both sides are in agreement on this, this appeal is dismissed in limine without admitting the appeal and without going into the merits of the case.

(E) In the result, the appeal filed by the Revenue is dismissed as not maintainable.

(Order pronounced in the open court on 21/11/2024)