DCIT Vs Jawaharlal Nehru Port Trust (ITAT Pune)
ITAT Pune held that late filing of audit report cannot disentitle trust from availing benefit of section 11 of the Income Tax Act. Accordingly, order of CIT(A) allowing claim of exemption u/s. 11 upheld and appeal of revenue dismissed.
Facts- Vide the present appeal, revenue has contested CIT(A) order by allowing claim of exemption under section 11 of the Income Tax Act. Revenue CIT(A) has not taken into consideration the fact that the assessee had failed to meet the mandatory requirements of Section 11 and 12 of the Act i.e. claiming exemption in the return of income for the relevant assessment year 2003-04 as well as getting its accounts audited.
Conclusion- Held that we find although the Tribunal had rejected the submission of the Revenue, however, the Assessing Officer has denied the claim of the assessee on the very same procedural grounds i.e. not claiming exemption u/s 11 in the return of income and non-filing of audit report along with the return. Therefore, once the Ld. CIT(A) after considering the decision of the Tribunal in assessee’s own case has directed the Assessing Officer to allow the claim on merits, the Revenue in our opinion should not have any grievance. Further, the submissions of the Ld. Counsel for the assessee that the decision of the Tribunal has not been challenged by the Revenue and therefore, the finding of the Tribunal has become final could not be controverted by the Ld. DR. We, therefore, find merit in the arguments of the Ld. Counsel for the assessee that the finding of the Assessing Officer to deny the claim of the assessee on procedural grounds is clearly beyond the scope of his jurisdiction which was circumscribed by the decision of the Tribunal. We further find the Assessing Officer in assessee’s own case for assessment years 2006-07 to 2008-09 has allowed the claim of exemption u/s 11 of the Act. We, therefore, do not find any infirmity in the order of the Ld. CIT(A) allowing the claim of exemption u/s 11 of the Act.
