The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the department can’t advantageous of the ignorance of the assessee in securing relief and restored the issue to the file of AO.
The assessee challenged the order of Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 20-122021 in the matter of an intimation issued by Centralized Processing Center (CPC), Bangalore u/s. 143(1) of the Act on 30-03-2018.
The assessee,Kongu Educational Trustis aggrieved by the fact that deduction u/s. 10(23C)(iiiad) of the Income Tax Act,1961 has been denied to the assessee in an intimation issued by CPC, Bengaluru on 30-03-2018.
It was observed that the reason for the denial of the deduction is the fact that the assessee has filed a return of income under the wrong provisions. The assessee has filed a return of income u/s. 139(4A) which applied to a Trust which was registered u/s. 12AA of the Act. The assessee is not a registered trust but claims to be an educational trust eligible for deduction u/s 10(23C)(iiiad) of the Act.
A Coram of Shri Manoj Kumar Aggarwal, AM and Shri SonjoySarma, Judicial Memberrestored the issue of deduction to the file of jurisdictional AO to examine the claim u/s. 10(23C)(iiiad) of the Act.
The Tribunal viewed that the officers of the department must not take advantage of the ignorance of the assessee about his rights and they must assist the taxpayer in every reasonable way, particularly in the matter of claiming and securing reliefs. The appeal stands allowed statistical purposes.
The assessee was represented by Shri S. Sridhar, Erode (Advocate) and the respondent was represented by M.S. Deeptha (JCIT).
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