Shahu Shikshan Prasarak Mandal Vs ACIT (Exmp) (ITAT Pune)
ITAT Pune held that denial of exemption under section 10(23C) of the Income Tax Act for bonafide mistake of filing ITR-5 instead of correct ITR-7 not justifiable since the same is just a procedural technical mistake.
Facts- The assessee trust is registered under Bombay Public Trust Act as educational trust. AO noted that the assessee did not file any documents indicating grant of approval u/s 10(23C)(vi) or section 12AA of the Act and hence not eligible to claim its receipts/income as exempt from taxation. CIT(A) confirmed the addition made by AO. Being aggrieved, the present appeal is filed.
Conclusion- It is the contention of the Ld. AR that this is a procedural technical mistake that could have been rectified by filing the correct ITR in Form-7. He submitted that though Form-5 has been processed by CPC vide intimation u/s 143(1) of the Act dated 29.03.2021, it has neither cause any loss to the Revenue nor resulted in any undue benefit to the assessee. All the particulars filed in ITR-5 have been filed in ITR-7 without any differentiation therein. No new data has been furnished in Form-7 which demonstrated that there is only a technical mistake that has occurred in filing Form-5. The Ld. AR referred to various judicial precedents in support of his above arguments which have been duly considered by us. We find force in the arguments advanced by the Ld. AR and in our view there was a bonafide mistake on the part of the assessee in filing Form-5 in place of Form-7. Therefore, the assessee should not be penalized for the same.
