SAM Women Upliftment Trust, Chennai V. CIT (Appeals)-NFAC, Delhi, NFAC, Delhi

ITA 19/CHNY/2023

AI Insights

The case involves SAM Women Upliftment Trust, a charitable trust, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The primary issue was the disallowance of exemption claimed under section 11 of the Income Tax Act, 1961, by the Assessing Officer due to the late submission of the audit report in Form No. 10B. The Tribunal considered the circumstances of the one-day delay, attributed to a technical glitch, and referenced a CBDT circular that allowed for the admission of belated applications under certain conditions. The Tribunal found the cause of the delay reasonable and thus condoned it, allowing the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127454 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 29-03-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 05-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: J.SERMAKANI; F.C.A
• Keywords: Charitable institution
• Section: 154; 12A; 119(2)(b); 10B

Judgement Text

आयकर अपील य अ धकरण, ‘सी’ यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘C’ BENCH, CHENNAI ी महावीर संह, उपा य एवं ी जी. मंज ु नाथ, लेखा सद&य के सम BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I. T. A. No. 1 9/ Ch n y/ 2 02 3 ( नधा रणवष / A s s e s sm e nt Yea r : 2 0 1 9- 2 0 ) SAM Women Upliftment Trust, 5/3, Periamalaiappan Street, Royapettah, Chennai-600 014. V s The ADIT., Centralized Processing Center, Bengaluru. P AN: A AK TS 19 6 6 R (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओरसे/ Appellant by : Mr. J.Sermakani, F.C.A यथ क ओरसे/Respondent by : Mr. P.Sajit Kumar, JCIT स ु नवाईक तार ख/D a t e o f h e a r i n g : 30.03.2023 घोषणाक तार ख /D a t e o f P r o n o u n c e m e n t : 30.03.2023 आदेश / O R D E R PER MAHAVIR SINGH, VP: This appeal by the assessee is arising out of order passed by the Commissioner of Income Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi vide appeal No. ITBA/NFAC/S/250/2022-23 / 1047329993(1) dated 15.11.2022. The assessment was completed by the ADIT., CPC., Bengaluru, for the relevant assessment year 2019-20 and issued intimation u/s.143(1) of the Income Tax Act, 1961 (hereinafter “the Act”) vide order dated 30.10.2020. 2 ITA No. 19/Chny/2023 2. The only issue in this appeal of the assessee is as regards to order of the CIT(A) confirming action of the Assessing Officer in disallowing exemption claimed u/s.11 of the Act, the assessee being charitable trust. 3. We have heard rival contentions and gone through facts & circumstances of the case. Brief facts of the case are that the assessee is a charitable trust registered u/s 12A of the Income Tax Act, 1961. The assessee filed its return of income on 04.09.2019 but submitted Form No. 10B on 05.09.2019. While processing the return of income, the AO omitted to consider the income applied during the year for charitable purpose and accumulation of 15 per cent of the total income. The ADIT., CPC issued an order u/s 154 of the Act on 30.10.2020 has disallowed exemption claimed by the assessee u/s.11 of the Act in the absence of audit report. 4. Admittedly, the assessee filed return of income for the relevant assessment year 2019-20 on 04.09.2019 and filed audit report in Form No.10B on 05.09.2019 i.e., a day after 3 ITA No. 19/Chny/2023 filing of return of income. We noted that the CBDT has issued circular No. 2/2020 dated 03.01.2020, wherein vide para 4(ii) the Board has given power to admit belated application filed in Form No.10B or for subsequent assessment years as per para 5, which read as under:- “4. Accordingly, ...... (i) ...... (ii) In all other cases of belated applications in filing Form No. l0B for years prior to AY. 2018-19, The commissioner of Income-tax are authorized to admit and dispose off by 31-3-2020 such applications for condonation of delay u/s 119(2)(b) of the Act. The Commissioner will while entertaining such belated applications in filing Form No. 1OB shall satisfy themselves that the assessee was prevented by reasonable cause from filing such application within the stipulated time. 5. In addition to the above, it has also been decided by the CBDT that where there is delay of upto 365 days in filing Form No. l0B for Assessment Year 2018-19 or for any subsequent Assessment Years, the Commissioners of Income-tax are hereby authorized· to admit such belated applications of condonation of delay under section 119(2) of the IT Act and decide on merits.” 5. We noted that there is delay of only one day and that also as claimed by the assessee due to technical glitches in the system, delay has occurred. Having considered there being 4 ITA No. 19/Chny/2023 reasonable cause, we condone delay in filing Form No.10B and direct the Assessing Officer to allow application of income u/s.11 of the Act and accordingly, deduction is to be allowed. We direct the Assessing Officer accordingly. 6. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 30 th March, 2023 Sd/- Sd/- ( जी. मंज ु नाथ ) ( महावीर संह ) ( G.Manjunatha ) ( Mahavir Singh ) लेखा सद%य / Accountant Member उपा य / Vice-President चे(नई/Chennai, )दनांक/Date: 30.03.2023 DS आदेश क त+ल,प अ-े,षत/Copy to: 1. Appellant 2. Respondent 3. आयकर आय ु .त (अपील)/CIT(A) 4. आयकर आय ु .त/CIT 5. ,वभागीय त न2ध/DR 6. गाड फाईल/GF.