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TMI Blog2024 (12) TMI 1534X X X X Extracts X X X X X X X X Extracts X X X X ..... against the order dated 09.05.2022 for assessment year 2018-19 order dated 26.03.2022 and for assessment year 2019-20 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. 2. At the very outset, it is observed that appeals in both the assessment years i.e., 2018-19 and 2019-20 are late by 691 and 671 days respectively. The ld. Counsel for the Assessee has filed a written submissions explaining the reasons for delay along with an affidavit which is reproduced as under:- 3. The ld. Counsel of the Assessee has also brought it on record that it was only when a recovery letter dated 09.04.2024 for the Assessment Year 2019-20 and another recovery letter dated 24.05.2024 for Assessment years 2018-19 and 2019-20 was received from the DCIT (Exemption), Chandigarh for the pending demand that the assessee confronted this fact to their C.A., D.P. Singh with the factual issues and then he hurriedly filed the appeal for both the years and thereafter, his services was terminated and new Counsel was engaged and all this happened because of the fact that the accounts branch and Comptroller office were not having any knowledge of the Income Tax mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cerned of the university at that time had misled them that their appeals were pending and it is only when the recovery notices were received by the PAU, from the DCIT (Exemption), Chandigarh in April and May, 2024 that the university authorities came to know that the appeals have not been filed by their C.A., D.P. Singh and, also considering the facts and circumstances of the case that the officials of the universities have no tax background and they were made to believe by the C.A., D.P. Singh that there appeals are pending. Reference was also made to the judgment of Hon'ble Supreme Court in the case of 'Esha Bhattacharya vs. Managing Committee of Raghunathpur Nafar Academy and Others' in Civil Appeals Nos. . 8183-8184 of 2013 order dated 13.09.2013, wherein, it has been held as under: The expression "sufficient cause" employed by the legislature is adequately elastic to enable the courts to apply the law in a meaningful manner which sub serves the ends of justice, for that is the life-purpose for the existence of the institution of courts. The learned Judges emphasized on adoption of a liberal approach while dealing with the applications for condonation of delay as ordinar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of 10(23C) and, therefore, the CPC vide order dated 20.03.2020 disallowed the exemption claimed by the assessee and thereafter, the case was taken up under scrutiny and during the course of scrutiny assessment, the assessee by way of letter dated 27.01.2021 has contended that the assessee's income is unconditionally exempt from Income Tax under Section 10 (23C)(iiiab) of the Income Tax Act, 1961 but the Assessing Officer based on the order u/s 143(1) confirmed the disallowance as made by the Assessing Officer. 11. The same issue was there before the ld. CIT (A) and the ld. CIT (A) in a detailed order at page 10 of the order mentioned that the assessee is entitled to claim the exemption u/s 10(23C) (iiiab) but then he upheld the disallowance as made u/s 143(3) and 143(1) even though in the last line of the order, he mentioned that the appeal is allowed. 12. The ld. Counsel of the assessee argued vehemently that it is just a bonafide error on the part of the counsel of the assessee who did not mention correct section/sub-clause for the purpose of claiming the exemption which the assessee is otherwise entitled to and relied upon the judgment of Hon'ble Delhi High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Habrol Cooperative Agricultural Society as cited supra wherein, wrong sub clause namely 80P(2)(c) was mentioned in the return form for claiming the deduction instead of deduction to be claimed u/s 80P(2)(a)(i) and by following the same facts & circumstances as in the present case, it was held as under: 10. Further, we have considered the case laws brought on record by the Id. Counsel of the Assessee and we find that there are number of case laws supporting view that in case there is a mistake by Assessee for claiming legitimate deduction, the Assessing Officer is duty bound to consider such legitimate deduction to the Assessee even if it was 7 not claimed or claimed under wrong sections. Accordingly, we do not find any justification in the findings given by the Addl/JCIT (A) and so it cannot be sustained, thus Assessee's appeal on this issue is allowed. 17. Thus, following the above said judgment, the assessee's appeal for claim of deduction u/s 10(23C)(iiiab) of the Income Tax Act, 1961 stands allowed. ITA No. 492/Chd/2024: ( A.Y. 2019-2020) 18. The assessee has taken the following grounds of appeal for assessment year 2019-20: 1. That the Ld. Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that for claiming of deduction u/s 10(23C)(vi), the tax audit report as well as the registration u/s 12A is required and since the assessee has not produced the copy of 12AA registration certificate and has further mentioned that the deduction under sub clause (iiiab) of Section 10(23C) is only available if it is substantially financed by the Government for any previous year, thus, the exemption was disallowed. The Ld. Counsel of the assessee argued that as per facts brought on record that the assessee is substantially financed which is evident from the grants received in the year under consideration to the tune of Rs. 421.44 crore out of Rs. 530.26 crore receipts and thus, it is a substantially financed university and for substantially financed university there is no requirement of audit as per tenth proviso which specifically excludes conducting of audit/report u/s 44AB and the report of such audit in prescribed form if the claim of the exemption falls u/s 10(23)(iiiab). 21. We have gone through the facts and the arguments as advanced by both the parties and though the facts & circumstances are the same as in appeal for AY 2018-19 and we have also gone through the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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