Swiss India Trust, CHENNAI V. ADIT, CHENNAI

ITA 2078/CHNY/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81237 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 06-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: R VIJAYARAGHAVAN
• Section: 143(3); 12AA

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHE NNAI . , . ! ! ! ! , ' ' ' ' # # # # BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI V. DURGA RAO, JUDICIAL MEMBER ./ I.T.A.NO.2078/MDS/2014 ' ! $! / ASSESSMENT YEAR :2010-11 M/S. SWISS INDIA TRUST, E-3, BOUGAIN VILLA APARTMENTS, 6 TH AVENUE, ANNA NAGAR, CHENNAI 600 102. [PAN: AAACT7755J] VS. THE ASSISTANT DIRECTOR OF INCOME TAX (EXEMPTIONS) IV, CHENNAI 600 034. ( %& %& %& %& /APPELLANT ) ( '(%& '(%& '(%& '(%& / RESPONDENT ) %& ) * / APPELLANT BY : SHRI R. VIJAYARAGHAVAN, ADVOCATE '(%& ) * / RESPONDENT BY : SHRI S. DAS GUPTA, JCIT ) + / DATE OF HEARING : 29.10.2014 ,$ ) + /DATE OF PRONOUNCEMENT : 30.10.2014 - - - - / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) VII, CHENNAI, DATED 29.05.2014 RELEVANT TO THE ASSESSMENT YEAR 2010-11. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A TRUST REGISTERED UNDER SECTION 12AA OF THE INCOME TAX ACT. THE ASSESSEE TR UST FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2010-11 ON 15.03.201 1 ADMITTING NIL INCOME. THE CASE WAS SELECTED FOR SCRUTINY AND NOTI CE UNDER SECTION 143(2) I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.2078 2078 2078 2078/M/ /M/ /M/ /M/1 11 14 44 4 2 OF THE ACT WAS ISSUED AND CALLED VARIOUS DETAILS FR OM THE ASSESSEE. IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS OBSERVE D THAT THE ASSESSEE HAD FILED FORM NO.10 FOR ACCUMULATION OF INCOME OF .18,00,000/- ALONG WITH COPY OF RESOLUTION ON 10.03.2011. FORM NO.10 FOR AC CUMULATION OF INCOME UNDER SECTION 139(1) OF THE ACT WAS TO BE FILED ON OR BEFORE 30.09.2010. IN THIS CASE, FORM NO.10 WAS FILED ONLY ON 10.03.2011, WHICH IS NOT IN TIME. THE ASSESSING OFFICER HAS NOT ALLOWED FORM NO.10 FI LED BY THE ASSESSEE AND ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF TH E ACT BY NOT CONSIDERING ACCUMULATION OF INCOME UNDER SECTION 11 (2) OF THE ACT OF .18,00,000/-. 3. ON APPEAL, THE LD. CIT(APPEALS) HAS OBSERVED TH AT THE ASSESSEE HAS FAILED TO FILE FORM NO.10 WITHIN TIME AND NO REASON S WERE GIVEN. RULE 17 OF THE INCOME TAX RULES PRESCRIBES TIME LIMIT FOR FILI NG OF FORM NO.10 AND THE ASSESSEE HAS NOT FILED FORM NO.10 AS PER THE ABOVE RULE. ACCORDINGLY, HE CONFIRMED THE ORDER OF THE ASSESSING OFFICER. 4. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. THE ASSESS EE HAD FILED FORM NO.10 FOR ACCUMULATION OF INCOME OF .18,00,000/- DATED 10.03.2011. AS PER RULE 17 OF THE INCOME TAX RULES, THE ASSESSEE HAS TO FIL E FORM NO.10 ON OR BEFORE 30.09.2010, THE TIME LIMIT ALLOWED UNDER THE RULE. THIS IS A FACT THAT THE ASSESSEE HAS NOT FILED FORM NO.10 AS PER RULE 1 7. IT APPEARS FROM THE I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.2078 2078 2078 2078/M/ /M/ /M/ /M/1 11 14 44 4 3 RECORDS THAT THE ASSESSEE HAS NOT GIVEN ANY REASON FOR NON-FILING OF FORM NO.10 AS PRESCRIBED UNDER RULE 17. IT IS THE DUTY O F THE ASSESSEE TO GIVE REASONS AS TO WHY HE WAS NOT ABLE TO FILE THE FORM IN TIME. AT THE SAME TIME, THE DEPARTMENT SHOULD ALSO CONSIDER THE EXPLANATION AS MAY BE OFFERED BY THE ASSESSEE IN JUDICIOUS MANNER. IN VIEW OF THE MA TTER, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE ORDER OF THE LD. CIT(APPE ALS) AND REMIT THE MATTER BACK TO THE FILE OF ASSESSING OFFICER TO CONSIDER T HE ISSUE AFRESH AND WE ALSO DIRECT THE ASSESSEE TO EXPLAIN THE REASONS FOR DELA Y OF NON-FILING OF FORM NO.10 AS PER RULE 17 OF THE INCOME TAX RULES. ACCOR DINGLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THURSDAY, THE 30 TH OF OCTOBER, 2014 AT CHENNAI. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER CHENNAI, DATED, THE 30.10.2014 VM/- - ) ''+./ 0/$+ /COPY TO: 1. %& / APPELLANT, 2. '(%& / RESPONDENT, 3. 1 ( ) /CIT(A), 4. 1 /CIT, 5. /2 ''+' /DR & 6. 3! 4 /GF.