The Pune Bench of Income Tax Appellate Tribunal (ITAT) has quashed the income tax proceeding as the non-compliance with communication under Section 143(1)(A) of Income Tax Act 1961 due to technical glitches in income tax portal was unintentional.
The appellant assessee, Kokan Kala Shikshan Vikaas Sanstha is a Trust engaged in charitable activities in the field of education, cultural, social, medical relief and woman empowerment etc., and registered u/s 12AA of the Act, had for assessment year 2018-19 filed its return of income under Section 139(4D) on 13/07/2018 declaring total income after a claim of exemption from the voluntary contribution received.
The AO, after putting assessee to notice under Section143(1)(a) of the Income Tax Act 1961, the ITR was processed under Section 143(1) of the Act denying the claim of exemption for non-submission of audit report in Form 10B along with or before filing the ITR and determined the total income. Assessee filed appeal, accompanying proof of filing of audit report.
Sarvesh Khandelwal, on behalf of the assessee submitted that, the appellant failed to attend the notice 143(1)(a) on account of IT-website technical glitches, which could not allow the appellant to download the notice / communication and vouch the contents therefore and for the reasons it remained non-complied. He further contended that, the ultimate compliance of submission of audit report was brought which was rejected and caused injustice.
Ramnath Murkunde, on behalf of the submitted that, when the assessee failed to file Form 10B along with return of income, the assessee would not be eligible for exemption Section 11 of the Act as per the amendment in Finance Act, 2015.
The Bench of S.S. Godara,(Judicial Member) and G. D. Padmahshali, (Accountant Member) observed that “ the appellant got its books audited, prior to filing of ITR for the impugned and the non-compliance with communication u/s 143(1)(a) of the Act due to IT Website technical glitches was unintentional and beyond the control of the appellant t is sufficient to form a reasonable cause for non-compliance and since the procedural compliance has been duly made good by fling the audit report on record, we see no reason to deny the exemption.”
The Bench set aside the impugned order and granted the claim of exemption.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
