SAINT. THOMAS EDUCATIONAL TRUST,JHARSUGUDA vs. ITO(EXEMPTION), SAMBALPUR

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ITA 169/CTK/2022Status: HeardITAT Cuttack18 January 2022AY 2018-193 pages
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What did the Tribunal hold?

The Tribunal held that it is the duty of the subordinate authority (CIT(E)) to give effect to the order of a superior authority (Tribunal), not the assessee's responsibility to pursue it. The Tribunal restored the issues to the AO for a fresh assessment after the CIT(E) gives effect to the prior Tribunal order.

What were the facts?

The assessee trust was granted registration under Section 10(23C)(vi) of the Income Tax Act by a Tribunal order. However, the Assessing Officer (AO) completed the assessment for AY 2018-2019 without granting this exemption, stating the jurisdictional CIT(E) had not given effect to the Tribunal's order. The CIT(A) dismissed the appeal, holding it was the assessee's duty to approach the CIT(E).

What were the issues?

Whether the AO and CIT(A) were justified in not granting the exemption under Section 10(23C)(vi) when a prior Tribunal order directed the CIT(E) to grant it, and whose responsibility it is to ensure effect is given to such an order.

Which sections of the Income-tax Act were involved?

Section 10(23C)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI ARUN KHODPIA

Hearing: 18/01/2023Pronounced: 18/01/2023

ननधााररती की ओर से /Assessee by : Shri Mahendra Kumar Kedia, CA राजस्व की ओर से /Revenue by : Shri S.C.Mohanty, Sr. DR सुनवाई की तारीख / Date of Hearing : 18/01/2023 घोषणा की तारीख/Date of Pronouncement : 18/01/2023 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 14.09.2022, passed in DIN & Order No.ITBA/NFAC/S/250/2022- 23/1045482061(1) for the assessment year 2018-2019.

2.

It was submitted by the ld. AR that the assessee has been granted registration u/s.10(23C)(vi) of the Act w.e.f. assessment year 2016-2017 vide an order dated 19.03.2018, passed by this Tribunal in ITA No.204/CTK/2017. It was the submission that the assessment in the case of the assessee came to be completed for the impugned assessment year on 23.02.2021 without granting the benefit of the exemption u/s.10(23C)(vi) of the Act to the assessee on the ground that the ld. CIT(E) has not given effect to the order of the Tribunal granting the assessee the benefit of the exemption u/s.10(23C)(vi) of the Act. It was the submission that the ld. CIT(A), NFAC has also held that it is the duty of the assessee to approach the jurisdictional CIT(E) to give effect to the order of the Tribunal and has dismissed the assessee’s appeal. It was the submission that the assessee has the benefit of registration u/s.10(23C)(vi) of the Act as granted by the Tribunal but the effect has not been given by the ld. CIT(E), therefore, the Tribunal may be pleased to direct the AO to redo the assessment after considering the exemption u/s.10(23C)(vi) of the act.

3.

In reply, ld. Sr. DR vehemently supported the order of the ld. CIT(A) and the AO.

4.

We have considered the rival submissions. It is surprising that the ld. CIT(A), NFAC has taken a stand that it is the duty of the assessee to approach the jurisdictional CIT(E) to give effect the order of the Tribunal. Once the superior judicial authority has passed an order modifying the order of a subordinate authority, then it is the duty of the subordinate authority to give effect to the order of the superior authority. It is not the duty of an assessee to run from pillar to post to get the authorities to give effect to the order of the superior authority. If the subordinate authority has an objection to the findings of the superior authority, it is very much open to the subordinate authority to file an appeal against such order. The subordinate authority does not have the authority to disregard or override a clear cut direction given by the superior authority. The facts in the present case clearly show that the coordinate bench of this Tribunal has

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