Case Law Details
Good Shepherd Church Vs ITO (ITAT Mumbai)
The dispute between Good Shepherd Church and the Income Tax Officer (ITO) reached the Mumbai Income Tax Appellate Tribunal (ITAT) over the reassessment for the assessment years 2010-11 and 2011-12. The core issue revolved around the validity of the reassessment initiated by the ITO.
The case stemmed from the ITO’s decision to reopen the assessment under Section 147 of the Income Tax Act, 1961, citing the non-filing of income tax returns by Good Shepherd Church for the assessment year 2010-11. However, it was later revealed that the church had indeed filed its returns within the stipulated time frame. Despite this, the ITO proceeded with the reassessment based on erroneous grounds.
During the assessment proceedings, it was also noted that the church’s claim for depreciation was not contested. However, the ITO raised concerns regarding the filing of returns beyond the prescribed deadline. The church argued that the delay was unintentional and sought condonation, emphasizing its compliance with audit requirements and its longstanding registration under Section 12A of the Act.
The Commissioner of Income Tax (Appeals) upheld the ITO’s decision, citing a judgment that seemed to justify denying exemptions for belatedly filed returns. However, this decision was based on an amendment introduced in the assessment year 2018-19, which was not applicable to the case at hand.
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