MRS WEBBS MEMORIAL ORPHANAGE, CHENNAI V. ITO, EXEMPTION WARD-2, CHENNAI

ITA 1295/CHNY/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7280 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 07-05-2024
• Assessment Year: misc
• Appeal Filed On: 16-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A R V SRINIVASAN
• Section: 10B; 143(1)

Judgement Text

आयकर अपीलीय अिधकरण ‘ए’’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय ŵी मनोज कु मार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु कु मार िगįर, Ɋाियक सद˟ के समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ ITA No.1295/Chny/2023 (िनधाŊरणवषŊ / Assessment Year: 2021-22) Webbs Memorial Orphanage, 41 Main Road, Saint Thomas Mount, Chennai 600 016. [PAN: AADTM 7709H] Vs. The Income Tax Officer, Exemption Ward 2, Chennai. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : None Ĥ×यथȸ कȧ ओर से /Respondent by : Shri. ARV Srinivasan, IRS, Addl. CIT स ु नवाई कȧ तारȣख/Date of Hearing : 08.05.2024 घोषणा कȧ तारȣख /Date of Pronouncement : 10.05.2024 आदेश / O R D E R MANU KUMAR GIRI (Judicial Member) The instant appeal filed by the assessee is directed against the order dated 22.09.2023 passed by the ADDL./JCIT (A)-12, Office of the Commissioner of Income Tax, Mumbai, arising out of the order dated 08.12.2022 passed by the DCIT, CPC, Bangalore, under section 143(1) of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2021-22. 2 ITA No.1295 /Chny/2023 2. The issue before us is that whether the delay of 3 days in filing the audit report in Form 10B could lead to denial of deduction u/s.11/12 of the Act. 3. The brief facts leading to the case is that the appellant filed its return of income (ITR 7) for 2021-22 on 18.02.2022 alongwith Form 10B dated 11.02.2022. The CPC, Bangalore, issued intimation under Section 143(1) of the Act dated 08.12.2022 wherein in tax demand of Rs.35,62,110/- was raised by denying exemption u/s.11/12 of the Act on the ground of delay in filing of form No.10B. The actual last date for filing of return of income & Audit report, in present case, was 15.02.2022. 4. Aggrieved with the order u/s 143(1) of the Act dated 08.12.2022, the appellant filed an appeal before CIT(A). Ld. CIT(A) confirmed the action of CPC. Aggrieved, the assessee is in further appeal before us. 5. At the time of hearing, none appeared for the Assessee. In grounds of appeal, the main contention raised by the asessee is that the appellant was not allowed exemption as a Charitable Trust and its entire receipts were treated as income and consequently demand of Rs.35,62,110/- was raised by CPC, Bengalore for the sole reason that Audit Report in Form 10B dated 18.02.2022 was filed with a delay of 3 days. The assessee is otherwise eligible to claim such deduction . 3 ITA No.1295 /Chny/2023 6. We are of the considered opinion that filing of Audit Report is a substantive requirement but the mode and stage of filing is a procedural one, particularly when there is minor delay of three days. The same could be a procedural omission but it could not jeopardise the assessee’s claiming deduction when it was eligible for the same. Therefore, we direct the ld. Assessing Officer to allow impugned deduction/ exemption to the assessee and recompute its income. 7. In the result, the appeal filed by the assessee in ITA No.1295/CHNY/2023 for assessment year 2021-22 is allowed. Order pronounced on 10th day of May, 2024 at Chennai. Sd/- Sd/- (मनोज कु मार अŤवाल) (मनु कु मार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated :10 -05-2024 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF