Secretary UP Sainik Purasvas Nidhi Vs DCIT (Exemptions)
Assessee, a society registered under the Societies Registration Act, 1860 engaged in welfare of retired Army personnel & their families, filed return of income on 06/02/2018 declaring NIL income. CPC while processing the return u/s 143(1) disallowed claim of exemption u/s 11. CIT(A) also dismissed appeal of Assessee.
Before Tribunal, there was no representation from Assessee. However, on perusal of record, Tribunal found that Assessee had contended that filing of Form-9A was not required as accumulated income was below 15% of gross receipts. This contention was neither examined by CPC nor by CIT(A).
Tribunal held that this crucial aspect needed verification. Accordingly, the issue was restored to AO with direction to verify whether accumulated income was indeed below 15% of gross receipts & decide afresh in accordance with law after giving Assessee due opportunity.
FULL TEXT OF THE ORDER OF ITAT LUCKNOW
This appeal vide I.T.A. No.270/Lkw/2024 has been filed by assessee for assessment year 2017-18 against impugned appellate order dated 29/02/2024 (DIN & Order No.ITBA/APL/S/250/2023-24/1061710188(1) passed by learned Addl/JCIT(A), Bengaluru [“Addl/JCIT(A)” for short].
2. The facts of the case, in brief, are that the assessee society is registered under the Societies Registration Act, 1860 and engaged in welfare of retired Army personnel and their families. The assessee filed its return of income on 06/02/2018 declaring total income at NIL. The case of the assessee was processed by Central Processing Cell and the claim u/s 11 of the Act was disallowed. Being aggrieved, the assessee went in appeal before the CIT(A), who has dismissed the appeal of the assessee. Aggrieved further, the assessee has filed the present appeal before the Income Tax Appellate Tribunal.
