Case Number: ITA 2425/DEL/2022
Appellant: Fortis Healthcare Ltd Provident Fund Trust, New Delhi
Respondent: ACIT, Circle 7(1), C.R. Building, I.P. Estate, New Delhi
Assessment Year: 2018-19
Case Filed on: September 30, 2022
Order Type: Final Tribunal Order
Date of Order: January 23, 2023
Pronounced on: January 23, 2023
The case concerns an appeal by Fortis Healthcare Ltd Provident Fund Trust against the decision of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC). The dispute centers on the denial of a tax exemption under section 10(25)(ii) of the Income Tax Act, 1961, which the appellant argues was unjustly refused for the assessment year 2018-19.
The primary issue in this appeal is the CPC’s failure to grant exemption under section 10(25)(ii) for the AY 2018-19, despite such exemptions being granted in both prior and subsequent assessment years. This inconsistency led to the appellant’s challenge of the decision, highlighting procedural oversights and legal inconsistencies in the handling of their tax exemption claim.
The appellant argued that their fund is registered under section 12A, qualifying it for tax exemption under section 10(25)(ii), which had been recognized in other assessment years. The appeal emphasizes the arbitrary nature of the CPC’s decision for the specific year in question and seeks redressal for what is perceived as an error affecting the fund’s financial interests.
During the hearing, it was observed that the CIT(Appeals) did not address the appellant’s concerns directly, instead focusing on unrelated issues. This oversight led to the Tribunal’s decision to remand the case back to the CIT(Appeals) for a proper review of the substantive issues initially raised by the appellant. The Tribunal highlighted the need for consistent application of tax laws and ensuring that entities are not arbitrarily denied exemptions they are duly entitled to.
The decision to remand the case underscores the importance of administrative accuracy and the impact of procedural lapses on tax justice. The case is a significant example of how administrative bodies must adhere to principles of consistency and fairness in tax assessments, particularly when dealing with exemptions that have substantial financial implications.
The case’s resolution will be closely watched by tax professionals and entities managing provident funds, as it highlights critical aspects of compliance and the interpretation of tax exemption provisions under Indian tax law.
The order was pronounced in open court, signifying the importance of the issues addressed and the tribunal’s commitment to ensuring that justice is served in the administrative processing of tax claims.
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