Ultra Corpotech P L Employee Group Gratuity Cum Life Assurance Scheme Vs ITO (ITAT Pune)
Mistaken Claim u/s 10(23AAA) Instead of 10(25)(iv) – ITAT Restores Matter for Verification- Approved Gratuity Trust Entitled to Exemption – Technical Error in Return Not Fatal
Assessee, a Group Gratuity Trust approved by CIT on 20.09.2013 & later renewed by PCIT (Central), Pune on 14.10.2022 effective from 23.03.2022, had filed return claiming exemption of Rs. 6,51,82,342/-. However, in the return, exemption was mistakenly claimed u/s 10(23AAA) instead of u/s 10(25)(iv).
CPC, in intimation u/s 143(1)(a) dated 23.08.2024, denied exemption & computed total income at Rs. 6,51,82,342/-.
On appeal, CIT(A) upheld denial on the ground that Form 10B audit report was not filed. Assessee contended before Tribunal that exemption u/s 10(25)(iv) does not require Form 10B & that approval for gratuity fund was validly in force. It admitted the error of mentioning the wrong section in return.
Tribunal noted that in earlier years AY 2021-22 & 2022-23 as well as subsequent year AY 2024-25, exemption was consistently allowed to the Assessee u/s 10(25)(iv) since its gratuity fund stood duly approved. The mistake of quoting wrong section in ITR was only a technical lapse. Tribunal held that income of an approved gratuity fund is clearly exempt u/s 10(25)(iv) & remitted the matter to AO to verify details & allow exemption if found correct. Accordingly, appeal was allowed for statistical purposes.
