Tax appeal allowed, deduction granted under ITA, CIT(A) decision set aside.

The Tribunal allowed the appeal in ITA No. 323/Kol/2021, directing the deletion of the addition and setting aside the ld. CIT(A)'s finding regarding the denial of a deduction of Rs. 11,60,122 under section 11 of the Income Tax Act, 1961. Another appeal, ITA No. 471/Kol/2021, became infructuous due to the decision in the first appeal.

---

---

Issues:
Appeal against order of ld. Commissioner of Income-tax (Appeals) regarding deduction u/s 11 of the Income Tax Act, 1961.

Analysis:
1. The appeals filed by the assessee were against the orders of the ld. Commissioner of Income-tax (Appeals) related to the Assessment Year 2018-19, arising from assessment orders framed under sections 154 and 143(1) of the Income Tax Act, 1961 by DCIT, Ward-CPC, Bengaluru.

2. The assessee raised identical grounds challenging the actions of the ld. CIT(A), NFAC, including not adjudicating the raised grounds on merits, directing the AO to pass a fresh order, and not allowing deductions claimed for charitable purposes.

3. The grievance of the assessee primarily revolved around the non-allowance of a deduction of Rs. 11,60,122/- under section 11 of the Act, claimed to have been incurred for charitable purposes.

4. The assessee, a charitable Trust registered under section 12AA of the Act, was engaged in providing medical relief to the poor. The initial return for AY 2018-19 did not claim the deduction in the prescribed format, leading to rejection of the claim in subsequent orders.

5. The ld. CIT(A) partly allowed the appeal against the order under section 154, directing the AO to pass a fresh order due to lack of discussion on reasons for denial of exemptions. The appeal against the order under section 143(1) was held as infructuous.

6. The assessee contended that the deduction was rightly claimed and should be allowed, while the ld. D/R supported the order of the ld. CIT(A).

7. After hearing the contentions and examining the records, the Tribunal noted the assessee's grievance against the denial of the deduction under section 11 and the setting aside of the issue for fresh examination.

8. The Tribunal found merit in the assessee's claim for the deduction of Rs. 11,60,122/-, as the denial was due to a mistake in filing the return, which was rectified by the assessee. The ld. CIT(A) erred in not deciding the issue on merit and directing a fresh examination.

9. Consequently, the Tribunal allowed the appeal, directing the deletion of the addition made and setting aside the ld. CIT(A)'s finding. Another appeal related to denial of deduction became infructuous due to the decision in the first appeal.

10. As a result, the appeal in ITA No. 323/Kol/2021 was allowed, while ITA No. 471/Kol/2021 was dismissed as infructuous.

---