G.R.D.TRUST, COIMBATORE V. ACIT (EXEMPTIONS), COIMBATORE

ITA 2033/CHNY/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 5117 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 07-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 10B; 143(1)

Judgement Text

आयकर अपीलीय अिधकरण ‘ए’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय ŵी महावीर िसंह, उपाȯƗ एवं माननीय ŵी मनोज कु मार अŤवाल ,लेखा सद˟ के समƗ। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.2033/Chny/2019 (िनधाŊरणवषŊ / Assessment Year: 2015-16) M/s. G.R.D. Trust Kalaikadhir Buildings, 6/48 – Avinashi Road, Coimbatore – 641 037. बनाम/ Vs. ACIT (Exemptions) Coimbatore. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAATT-1480-B (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : ShriJ. Balachander (Advocate) & Ms. S. Indumathi (Advocate) – Ld. ARs ŮȑथŎकीओरसे/Respondent by : Shri ARV Sreenivasan (Addl. CIT) – Ld. DR सुनवाईकीतारीख/ Date of Hearing : 06-04-2022 घोषणाकीतारीख / Date of Pronouncement : 06-04-2022 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2015-16 arises out of the order of learned Commissioner of Income Tax (Appeals)-2, Coimbatore [CIT(A)] dated 26.07.2018 in the matter of intimation issued by CPC, Bengaluru on 24.12.2016. In the said intimation, the amount of Rs.433.17 Lacs as accumulated / set apart by ITA No.2033/Chny/2019 - 2 - the assessee for specified purposes has not been considered as application of income. 2. The Registry has noted a delay of 278 days in the appeal, the condonation of which has been sought by the assessee on the strength of condonation petition dated 25.03.2022 which is accompanied by the affidavit of assessee’s counsel Shri J. Balchander. In the affidavit, it has been submitted that the delay occurred due to the fact that original order got misplaced in the chamber and could not be traced immediately. After considerable efforts, the order was traced on 28.06.2019 and accordingly, the appeal was filed on 08.07.2019 with a delay of 278 days which was neither willful nor wanton. The Ld. Sr. DR vehemently opposed the condonation and submitted that the counsel could obtain true copies by making appropriate application. Considering the fact that the assessee is a charitable trust, we are inclined to condone the delay, however, with a cost of Rs.10,000/-. The cost shall be deposited by the assessee within 15 days from the date of receipt of this order to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras. The receipt / proof shall be furnished to the registry forthwith. Accordingly, the delay is condoned and the appeal is admitted for adjudication on merits. 3. In intimation issued u/s 143(1), the amount of Rs.433.17 Lacs as accumulated / set apart by the assessee for specified purposes has not been considered as application of income. Upon further appeal, Ld. CIT(A) noted that the assessee trust had accumulated the said amount for specified purposes. The Ld. CIT(A) noted that no reason was given for such adjustment and this adjustment was beyond the scope of Sec.143(1) of the Act. The Ld. AO was directed to allow the claim of the ITA No.2033/Chny/2019 - 3 - assessee if Form 10B as provided in Rule 17B was filed by the assessee and it contain the detail of amount set apart as claimed by the assessee. Still aggrieved, the assessee is in further appeal before us. 4. Upon perusal of factual matrix, we find apparently the accumulation has been denied to the assessee for want of Form 10B. The Ld. CIT(A) had rightly noted that this adjustment could not be made u/s 143(1) provided the assessee had filed the requisite Form 10B as per Rules. The impugned order also takes note of the fact that the assessee had accumulated the said amount for specified purposes. Therefore, instead of remitting the issue to Ld. AO, Ld. CIT(A) could have verified filing of Form 10B. This is in in view of the fact that only a processing of the return has been done by CPC, Bengaluru and the assessee is not subjected to scrutiny assessment proceedings. The assessee would have no window to represent his case before CPC, Bengaluru. Therefore, we direct Ld. CIT(A) to verify the aspect of Form 10B and re- adjudicate the issue. 5. The appeal stands allowed for statistical purposes. Order pronounced on 06 th April, 2022. Sd/- (MAHAVIR SINGH) उपाȯƗ /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखासद˟ /ACCOUNTANT MEMBER चेɄई/ Chennai; िदनांक/ Dated : 06-04-2022 JPV आदेशकीŮितिलिपअŤेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकरआयुᲦ (अपील)/CIT(A) 4. आयकरआयुᲦ/CIT 5. िवभागीयᮧितिनिध/DR 6. गाडᭅफाईल/GF