ANNAI VELANKANNI EDUCATIONAL TRUST,TIRUNELVELI V. ITO, EXEMPTION WARD, TIRUNELVELI, TRIUNELVELI

ITA 2185/CHNY/2024

AI Insights

The case involves the Annai Velankanni Educational Trust, which operates several educational institutions, and the Income Tax Officer, Exemptions Ward, Tirunelveli. The dispute arose from the trust's failure to comply with notices under section 142(1) of the Income Tax Act, 1961, leading to an assessment under section 144, which determined the trust's income at \\u20b91,33,78,262. The trust appealed against this assessment, which was initially delayed by 129 days but later condoned. The Tribunal noted the trust's lack of representation and compliance at various stages but acknowledged the potential for the trust to substantiate its claims for tax exemptions if given another opportunity.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107377 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R. RAGHUPATHY
• Assessee Lawyers: T.VASUDEVAN
• Keywords: Condonation of delay
• Section: 144; 142(1); 11; 12AA; 119(2)(b); 10B

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी मनोज क ुमार अŤवाल, लेखा सद˟ क े समƗ । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member आयकर अपील सं./I.T.A. No.2185/Chny/2024 िनधाŊरण वषŊ/Assessment Year: 2017-18 Annai Velankanni Educational Trust, 262A, Thiruchendur Road, Palayamkottai, Tirunelveli, Palayamkottai H.O. Tirunelveli 627 002. [PAN:AAETA3416A] Vs. Income Tax Officer, Exemptions Ward, Tirunelveli. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri T. Vasudevan, Advocate ŮȑथŎ की ओर से/Respondent by : Shri R. Raghupathy, Addl. CIT सुनवाई की तारीख/ Date of hearing : 19.12.2024 घोषणा की तारीख /Date of Pronouncement : 31.12.2024 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 12.02.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2017-18. 2. We find that this appeal is filed with a delay of 129 days. The assessee filed an affidavit for condonation of delay explaining reasons I.T.A. No.2185/Chny/24 2 for the said delay and prayed for condonation of that delay. On perusal of the condonation petition and upon hearing both the parties, we find that the reasons explained by the assessee are bonafide and therefore, the delay is condoned and admitted the appeal for adjudication. 3. At the outset, we note that the assessee is a trust running educational institutions under the name and style as M/s. Little Flower Matriculation Higher Secondary Trust, Little Flower Model School and Little Flower English School. The Assessing Officer found cash deposit in assessee’s account in Axis Bank, Tirunelveli and since no return of income filed, issued notice under section 142(1) of the Income Tax Act, 1961 [“Act” in short]. According to the Assessing Officer the assessee- trust has not complied with the said notice and again show-cause notice issued to furnish objection, if any, on a proposal to complete the assessment under section 144 of the Act. On perusal of the assessment order, there was no representation on behalf of the assessee in completing assessment, which is clear from para 7.3, 8 & 9 of the assessment order. Having no option, the Assessing Officer determined the total income of the assessee at ₹.1,33,78,262/- vide his order dated 24.12.2019 under section 144 of the Act. We find no I.T.A. No.2185/Chny/24 3 representation made by the assessee before the first appellate authority, which is clear from para 4.1 of the impugned order. The ld. CIT(A) confirmed the order of the Assessing Officer for having no evidence substantiating the grounds challenging the action of the Assessing Officer. 4. Before us, the ld. AR Shri T. Vasudevan, Advocate submits that, the ld. CIT(E) condoned the delay in filing audit report in Form 10B as well as delay in filing return of income vide his order under section 119(2)(b) of the Act dated 08.10.2020 & 26.11.2024 respectively and placed a copy of the same on record. He further submits that the assessee is ready to prosecute its case if this Tribunal affords an opportunity in remanding the matter to the file of the Assessing Officer. He also submits that the assessee has a fair case in succeeding before the Assessing Officer by furnishing all the relevant details in support of claiming exemption under section 11 of the Act. 5. The ld. DR Shri R. Raghupathy, Addl. CIT opposed the same and argued that the Assessing Officer and the ld. CIT(A) given ample opportunity to the assessee, but, the same were not utilized in completing the assessment. The ld. DR drew our attention to the I.T.A. No.2185/Chny/24 4 orders of the Assessing Officer and the ld. CIT(A) in support of his arguments. 6. Having heard both the parties, we note from the assessment order that there was no compliance by the assessee against the notice issued under section 142(1) of the Act, but, it was contended that the assessee is eligible to claim deduction under section 11 of the Act and a copy of grant of registration under section 12AA of the Act was furnished before the Assessing Officer, which is clear from para 2 of the assessment order. On perusal of para 7.3 of the assessment order, we note that having no valid return of income and audit report in Form 10B filed, the Assessing Officer treated the assessee as AOP and the excess of income over expenditure was disallowed. We have perused the orders of the ld. CIT(E) passed under section 119(2)(b) of the Act dated 08.10.2020 in condoning the delay in filing audit report in Form 10B as well as condoning the delay filing the return of income vide order dated 26.11.2024. Taking into consideration the submissions of the ld. AR that the assessee is ready with all the relevant documents in claiming exemption under section 11 of the Act, we deem it proper to remand the matter to the file of the Assessing Officer for fresh consideration. The Assessing Officer shall verify all the details and I.T.A. No.2185/Chny/24 5 pass order in accordance with law. The assessee is at liberty to file evidences in support of its claim. Thus, the grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31st December, 2024 at Chennai. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 31.12.2024 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "