COMMUNITY ACTION FOR RURAL DEVELOPMENT,PUDUKKOTTAI V. ITO, WARD-1, PUDUKOTTAI

ITA 2342/CHNY/2024

AI Insights

The case involves Community Action for Rural Development, which appealed against the order of the CIT(A) dismissing their appeal due to the non-filing of Form 10B within the prescribed due date for the Assessment Year 2016-17. The CPC, Bengaluru, had earlier not allowed the claim of exemption under section 11 of the Income Tax Act, citing the same reason. The assessee sought condonation for the delay in filing Form 10B, which was still pending at the time of the tribunal's decision. The tribunal decided to provide another opportunity for the assessee to substantiate its case before the CIT(A), emphasizing the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472185 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G. SARATHA
• Assessee Lawyers: SALAI VARUN ISAI AZHAGAN
• Keywords: Condonation of delay; Set aside; Principle of natural justice
• Section: 11; 10B

Judgement Text

" आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी एबी टी. वक\u001e, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2342/Chny/2024 िनधा8रण वष8 /Assessment Year: 2016-17 Community Action for Rural Development, No.1930, Samathuvapuram, Pulivalam Post. Thirumayam Taluk, Pudukkottai District-622 507. Vs. The Income Tax Officer Ward-1, Pudukottai. [PAN: AAATC 0237F] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ\u001e की ओर से/ Appellant by : Shri Salai Varun Isai Azhagan, Advocate HIथ\u001e की ओर से /Respondent by : Mrs. G. Saratha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 21.11.2024 घोषणा की तारीख /Date of Pronouncement : 31.01.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2016-17 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 09.06.2022. ITA No.2342/Chny/2024 :- 2 -: 2. There is a delay of 760 days in filing the appeal by the assessee. The assessee has filed condonation petition stating the reasons for delay in filing the appeal. We have considered the petition of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is condoned accordingly. 3. The only ground in this appeal of assessee is against the order of Ld. CIT(A) in dismissing the appeal on the ground that the assessee has not filed Form 10B within due date. 4. The CPC, Bengaluru in the order passed u/s. 154/153(1) has not allowed the claim of exemption u/s. 11 of the Act as the assessee has not filed Form-10B within due date prescribed. The Ld. CIT(A) has dismissed the appeal as the as was required to file condonation of delay in Form 10 before Ld. CIT(A). 4. At the outset, The Ld. Authorized Representative (A.R) of the assessee has requested that the assessee has filed petition before Ld. CIT(E) to condone the delay and therefore, one more opportunity be provided in the interests of justice. ITA No.2342/Chny/2024 :- 3 -: 5. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. On perusal of orders of Ld. CIT(A), we find that the Ld. CIT(A) has dismissed the appeal for claim of exemptions u/s.11 of the Act for the reason that the assessee has not filed Form- 10B within the prescribed due date. The Ld. AR has submitted assessee has filled application for condonation of delay in filing the audit report before Ld. CIT(E) which is pending . We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate its cases before the Ld. CIT(A). Accordingly, we set aside the orders Ld. CIT(A) and remit the matter back to the file of Ld. CIT(A) for denovo adjudication after receipt of decision of Ld. CIT(E) for condonation of delay. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. ITA No.2342/Chny/2024 :- 4 -: 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31st January, 2025. Sd/- Sd/- (एबी टी. वक\u001e) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 31st January, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. \t थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय \tितिनिध/DR 5. गाड\u0019 फाईल/GF "