Income Tax Appellate Tribunal - Patna
Dwarika Nath Social Welfare Society, ... vs Acit, Central Processing Centre, ... on 18 June, 2019
iiii= Eiitiiiiife I. IN THE INCOME TAI APPELLATE TRIBUNAL PATNA BENCH, PATNA ch ErEtr Jrf, ± qqq ri ch ".TIT.HE, am tlaq aTmaT I BEFORE SHRICHANDRAMOHAN GARG,JM `AND SHRI L.P. SAHU, AM 3ITFT 3rfu ri.;ITA NO.248;PAT/201 8 f} qfr /Assessee by Shri N. Maitin, AR ©flrfutr/Revenuebygivrfurfu/DateofHearing Shri Supriya Bjswas, DFt 17/06/2019 / 18/06/2019 Date of Pronouncement EatL.P.Sah± This is an appeal filed by the assessee against the order of Commissioner of Income Tax (Appeals), Patna, dated 06.07.2018 for the assessmentyear2015-2016ont`hefollowinggroundsofappeal:-
1. That on thrennff£#nhan?hc^jro%:T_3f_a.?.C_3_S_ _Of tpe. Ca.Se, the ld. CIT(A)-I erred in confirming the disallowance of tr=-ai;6 -.;isJi{s-.:f\nt'[± appel,ant.
2- Tehr::rd :nn rtDf oerf.,ancnts+haandn^:.I-I+r.\C^u^m^SLt£Ln_Ce_S_ _Pf .,the. 9.?SP, the ld. CIT(A)-I I enr:e®d®ajAn hr:,j=hc!i?Ag ^th^e Petition of the ap;6li=-;t f-ikgJ'ag#n\sut. thv: I:%J:r passed by the ld.AO.
3. TehITaetd :nn nthhteafnanc:=^:.n+:n„C-I+r:u^T^S!fnL:fs_P_f, _the.C?SP, tpe ld. CIT(A)-I =^%.e.drijann:b°^t;^at9^Pnr?.:fa_tiTg_.t_h_e_fa.ct.the-cli.-iwi.5f-ida;dal{i3n'uohva`c`c`on:-n't wasdeprec.Iationwasb6meoutoftheri{irin-fill:i-wit-if.V€E8. 1 ITA No.248/PAT/2018
4. Tahma^tA 3nn.t^h,e_f_a_Ct_S_3_nLg_ _:ifgum,St?n.Pe? .Pf the Ce_Se, the ld. CIT(A)-I e_pe.I_ _ip not gppr_e.pi_aprg.. th_e fact that the appella;t via;-€nti{I=d .'f;r d^erd::^C^t!3^n_ :u_l_S..:.1.9.!_2.3C)(iliad) of the act b;. virtui -6F-it-.i:.i;6 .-a; education institution.
2. Brief facts of the case are that the assessee filed return of income on 04.03.2016 declaring total loss of Rs.3,24,347/-. The returh of income was filed u/s.139(4C) of the Income Tax Act. The assessee has declared gross annual receipt of Rs.65,47,320/-and clainied` exemption u/s.10(23C)(iiiad) of the Act. The return was processed u/s.143(1) of the ` Act on 04.03.2016 and the Centralized Processing Centre (CPC) determined aggregate income of the assessee at Rs.9,52,355/- on which tax was determined at Rs.1,50,680/-including interest. Aggrieved from the intimation generated by the Centralized Processing Centre u/s.143(1)(a) of the Act, the assessee filed appeal before the CIT(A) u/s.154 of the Act for rectification of additions. The ld. CIT(A) dismissed the appeal of the assessee observing that there is no mistake apparent from the record. Feeling aggrieved from the order of CIT(A), the assessee is in further appeal before the Income Tax Appellate Tribunal.
3. Ld. AR submitted that the total receipt of the assessee for the impugned year was below Rs.1 crore, therefore, assessee's income is exempt as per Section 10(23C)(iiiad) of the Act and the assessee has \ also not claimed any exemption u/s.11 of the Act. The intimation generated by the CPC is added back to the total depreciation claimed by the assessee which was a clear mistake apparent from the record. The assessee's total incorfie is below Rs.1crore, therefore, disallowance of depreciation is not correct and it is a mistake apparent from the record of aL ITANo.248/PAT/2018 the revenue. Ld. CIT(A) has also wrongly dism.issed the appeal of the assessee.
4. On the other hand, ld. DR relied on the orders of lower authorities and submitted that the CIT(A) has rightly dismissed the appeal of the assessee because there was no mistake apparent from the record. The assessee has claimed exemption twice one is at the time of purchase of assets and next by claiming depreciation thereon as application of income u/s.11(i)(a) of the Act. To plug the loopholes the CBDT has issued Circular for claiming double deduction.
5. Having considered the rival submissions of both the sides and the orders of authorities below, we notice from the income and expenditure account of the assessee that the total receipts is Rs.65,47,553/- and the assessee has filed return of income claiming exemption u/s.10(23C)(iiiad) I of the Act. The total receipts of the assessee is below Rs.1 crore, therefore, the income of the assessee is exempt as per the provisions of the Income Tax Act. The intimation generated by the Centralized Processing Centre in which the amount of depreciation has been adjusted and enhanced the total income of the assessee, is a mistake apparent from the record. The ld.CIT(A) wrongly dismissed the appeal of the assessee. In view of the peculiar facts of the present case, the case law relied on by the CIT(A) is not applicable. Ld.CIT(A) was also referred to Section 11(6) of the Act which is effective from 01.04.2015 and also not applicable because the entire income js exempt as per the provisions of aL, ITANo.248/PAT/2018 Section 10(23C)(ijjad) of the ActE Hence, the grounds of appeal of the assessee are allowed.
6. In the result, appeal of the assessee is allowed.
Order pronounced in the open court on 18/06/2019.
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qEFT/Patna; fair Dated 18/06/2019 '
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n+irEEE-n-EfflEH`EEFHIT.H.mITEmhEmmH]RIEITHE± Dwarika Nath Social Welfare Society, At-Mathurapur, PO-gogri, Djstt-Khagarja(Bihar)
2. qEqth/The Respondent-
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6. ndtry/Guard file.
tlErfugfu/ITruecopy// anaqu/ By ORDER,
(Senior Private Secretary)
3IiFT tltfrrfu 3rffro, lan ; iTAT, patna