The case involves Arya Samaj G.K.-II (Regd), a registered charitable organization, which filed an appeal against the order of CIT(A) concerning the assessment year 2014-15. The appeal was heard before Shri Amit Shukla, Judicial Member at the Income Tax Appellate Tribunal, Delhi Bench ‘SMC’.
Arya Samaj G.K.-II filed its return declaring ‘Nil’ income after claiming deductions under Sections 11(1), 11(2), and 12A. The deductions were initially disallowed in the processed return, leading to a dispute over the correct entry of deductions in the filed return and the entitlement to claim these deductions under the Income Tax Act.
Deduction Disputes: The tribunal addressed disputes concerning the disallowances of deductions claimed under various sections meant for charitable trusts. The main contention was the incorrect entry of ‘No’ in the form where ‘Yes’ was intended, leading to wrongful disallowance during processing.
Typographical Errors: The appellant argued that typographical errors made during the electronic filing of the return led to the wrongful disallowance of claims that were otherwise legally permissible.
The tribunal, emphasizing the importance of natural justice and the rectification of clerical errors, directed the Assessing Officer to verify the claims afresh and compute the income in accordance with the provisions applicable to charitable organizations under Sections 11 to 13 of the Act. The decision highlighted the judiciary’s recognition of the potential for human error in electronic filings and the need to correct such errors to ensure fair treatment under the law.
The case underscores the challenges faced by charitable organizations in tax filings and the importance of accuracy in electronic submissions. It also highlights the tribunal’s role in ensuring that minor procedural lapses do not unjustly penalize entities entitled to tax exemptions. The judgment serves as a crucial reference for similar cases involving electronic filing errors and the interpretation of tax exemptions for registered charities.
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