Income Tax Appellate Tribunal - Bangalore
The Income Tax Officer (Exemptions) ... vs M/S Isidore Colaco Memorial Charitable ... on 14 August, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
'B' BENCH, BENGALURU
BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER
and
SHRI JASON P BOAZ, ACCOUNTANT MEMBER
ITA No.1099/Bang/2018
(Assessment year: 2015-16)
Income-tax Officer (Exemptions),
Ward-1,
Mangalore. ... Appellant
Vs.
M/s.Isidore Colaco Memorial Charitable Hospital Trust,
No.15-23-1421, Bendoor,
Mangalore-575002. ... Respondent
PAN:AAATI 0765 Q
Appellant by : Miss. Nandini Das, JCIT(DR).
Respondent by : Shri V.K.Gurunathan, Advocate.
Date of hearing : 06/08/2018
Date of pronouncement : 14/08/2018
O R D E R
Per JASON P BOAZ, AM :
This appeal by Revenue is directed against the order of the CIT(A), Mangalore, dated 09/01/2018 for assessment year 2015-
16.
2. Briefly stated, the facts relevant for disposal of this appeal are as under:-
2.1 The assessee is a Trust registered u/s 12A of the Income-
tax Act, 1961 [in short 'the Act']. For assessment year 2015-16, the assessee filed the return of income on 23/09/2015 declaring NIL income after setting aside for accumulation a sum of Rs.1,15,00,000/- for future development of the Hospital run by the ITA No.1099/Bang/2018 Page 2 of 7 Trust. The Central Processing Centre of the Depart ['CPC'], while processing the return of income u/s 143(1) of the Act, vide intimation dated 21/10/2016, disallowed the accumulation of Rs.1,15,00,000/- claimed by the assessee and recomputed the assessee's income at Rs.1,17,41,751/-.
2.2 Aggrieved by the intimation u/s 143(1) of the Act dated 21/10/2016 for assessment year 2015-16, the assessee filed an application u/s 154 of the Act before the Assessing Officer (AO) seeking rectification of the aforesaid intimation u/s 143(1); along with a copy of Form No.10. According to the assessee, attempts were made to file Form No.10 electronically, but due to technical reasons, the same could not be uploaded. Form No.10 was duly filed before the AO on 30/09/2015, as per the acknowledgment of the O/o ITO Exemption, Ward-1, Mangalore. The AO rejected the assessee's rectification application vide order dated 22/02/2016.
2.3 Aggrieved by the order of the AO dated 22/02/2016 rejecting its rectification application for assessment year 2015-16, the assessee trust filed an appeal before the CIT(A), Mangalore. The ld.CIT(A) vide the impugned order dated 09/01/2018 allowed the assessee's appeal for accumulation of Rs.1,15,00,000/- u/s 11(2) of the Act, taking into account the CBDT Circular No.(XL-35) dt.11/04/1955 and the decision of the Hon'ble Apex Court in the case of CIT vs. Nagpur Hotel Owners Association (2001) 114 Taxman 255 (SC).
3.1 Revenue, being aggrieved by the order of the CIT(A), Mangalore dated 09/01/2018 for assessment year 2015-16 has filed this appeal, wherein it has raised the following grounds:-
ITA No.1099/Bang/2018 Page 3 of 73.2 The sum and substance of the grounds of appeal raised (supra) challenge the action of the ld.CIT(A) allowing the assessee's claim of accumulation u/s 11(2) of the Act. In this context, revenue contends that the ld. CIT(A) ought not to and was not empowered to allow the assessee's claim as it did not comply with the provisions of section 11(2) of the Act r/w Rule 17 of the Income-tax Rules, 1962 [in short 'the Rules'] which required the assessee to file Form No.10 electronically along with the return of income and which the assessee failed to do. The ld. DR emphatically supported the order of the AO in the matter.
3.3 Per contra, the ld. AR for the assessee supported the impugned order of the ld.CIT(A) and reiterated the submissions put forth before the ld.CIT(A) vide letter dated 08/01/2018 which is extracted at para 5.2 of the impugned order.
3.4.1 We have heard the contentions of both parties and perused and carefully considered the material on record, including the provisions of section 11(2) of the Act and Rule 17 of the Rules. There is no dispute with respect to the fact that the assessee had ITA No.1099/Bang/2018 Page 4 of 7 claimed and was entitled for accumulation of Rs.1,15,00,000/- u/s 11(2) of the Act , but was denied this claim solely on the ground that Form No.10 was not filed electronically. According to the assessee, attempts were made to upload the same electronically, but due to technical glitches, was unable to do so, and therefore, since it was left with no other option, Form No.10 was filed before the AO manually on 0/09/2015 and receipt thereof was duly acknowledged. In these undisputed circumstances, we are of the view that the assessee was left with no other option than to file Form No.10 manually with the AO when it became impossible to e file Form 10 electronically due to glitches and had reasonable cause to do so.
All above facts are neither controverted nor disputed by Revenue. The ld.CIT(A) has recorded that on verification of all documents filed before him; including the copy of return in ITR-7, Form No.10, Audit in Form 10B, computation of income and annexures thereto he has come to the finding that the crucial information/fact of the amount of accumulation as required in Form No.10 is already captured in the ITR-7. The ld.CIT(A)'s decision in the matter at para 5.3 to 5.7 of the impugned order is extracted as under:-
ITA No.1099/Bang/2018 Page 5 of 7 ITA No.1099/Bang/2018 Page 6 of 73.4.2 Except for raising the grounds (supra), Revenue has failed to controvert the findings of the ld.CIT(A) (supra). In the factual matrix of the case as discussed above, we find no reason to interfere with or differ from well-reasoned and cogent finding rendered by the ld.CIT(A) (supra) and therefore, uphold the same. Consequently, the grounds raised by Revenue are dismissed.
4. In the result, Revenue's appeal for assessment year 2015- 16 is dismissed.
Order pronounced in the open court on 14th August, 2018.
Sd/- sd/-
(SUNIL KUMAR YADAV) (JASON P BOAZ)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Place : Bengaluru.
D a t e d : 14/08/2018
srinivasulu, sps
ITA No.1099/Bang/2018
Page 7 of 7
Copy to :
1 Appellant
2 Respondent
3 CIT(A)
4 CIT
5 DR, ITAT, Bangalore.
6 Guard file
By order
Senior Private Secretary
Income-tax Appellate Tribunal
Bangalore