Shree Rajendrapark Swetamber Murtipujak Sangh, Ahmedabad V. The ITO, Ward-2 (Exemp.), Ahmedabad

ITA 323/AHD/2023

AI Insights

The case involves Shree Rajendrapark Swetamber Murtipujak Sangh, a Public Charitable Trust, appealing against the order of the National Faceless Appeal Centre (NFAC), which upheld the disallowance of exemptions amounting to Rs. 45,81,698 under Sections 11 & 12 of the Income Tax Act due to the belated filing of income tax return and Form 10B. The Trust argued that the delay was caused by the critical illness and demise of the Managing Trustee, which was a sufficient cause for the delay. The Tribunal noted that the delay in filing Form 10B had been condoned by the CIT(Exemption) and found the reasons for the delay in filing the income tax return and Form 10B to be genuine, thus condoning the delay in filing the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131575 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 11-10-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 01-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Condonation of delay
• Section: 11; 10B; 143(1); 250; 43

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before: Ms. Suchitra Kamble, Judicial Member Rajendrapark Swetamber Murtipujak Sangh, 12-13-14 Amarjyot Society, Rajendrapark Road, Odhav, Ahmedabad-382415 PAN: AAOTS0456J (Appellant) Vs The ITO, Ward-2 (Exem), Ahmedabad (Respondent) Assessee by: Shri S.N. Divetia, A.R. & Shri Samir Vora, A.R. Revenue by: Ms. Saumya Pandey Jain, Sr. D.R. Date of hearing : 12-10-2023 Date of pronouncement : 18-10-2023 आदेश/ORDER This is an appeal filed against the order dated 28-11-2022 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2020-21. 2. The grounds of appeal are as under:- “1.1 The order passed by U/s. 250 on 28.11.2022 by NFAC (CIT(A), Delhi upholding the disallowance of exemptions aggregating to Rs. 45,81,698/- u/s 11 & 12 of the Act by CPC Bengaluru on account of ITA No. 323/Ahd/2023 Assessment Year 2020-21 I.T.A No. 323/Ahd/2023 A.Y. 2020-21 Page No. Shree Rajendrapark Swetamber Murtipujak Sangh vs. ITO 2 belated filing of return of income and Form 10B is wholly illegal, unlawful and against the principles of natural justice. 2.1 The ld. NFAC has grievously erred in law and or on facts in disallowing the exemptions aggregating to Rs. 45,81,698/- u/s 11 & 12 of the Act by CPC Bengaluru on account of belated filing of return of income and Form 10B, though there was a sufficient cause for the delay and CIT(A) had powers to consider and condone such delay. 2.2 That the in the facts and circumstances of the ld, NFAC ought not to have disallowed the exemptions aggregating to Rs. 45,81,698/- u/s 11 & 12 of the Act by CPC Bengaluru on account of belated filing of return of income and Form 10B, though there was a sufficient cause for the delay and CIT(A) had powers to consider and condone such delay. 2.3 The ld. NFAC has grievously erred in law and or on facts in holding that there was no power with him for condoning the delay in filing the return. It is, therefore, prayed that the disallowance of the exemptions aggregating to Rs. 45,81,698/- upheld by the CIT(A) may kindly be deleted.” 3. The assessee is a Public Charitable Trust registered u/s 12A(1)(ac)(i) of the Income Tax Act, 1961. The assessee trust filed its Return of Income for A.Y. 2020-21 in ITR-7 on 30.03.2021 alongwith an audit report in Form No. 10B dated 30.03.2021 declaring total income at Rs. Nil. The assessee received an intimation u/s 143(1) of the Income Tax Act, 1961 on 30.11.2021 with a demand of Rs. 15,47,010/-. 4. Being aggrieved by the intimation order dated 30.11.2021, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that due to critical illness and demise of the Managing Trustee, there was delay of 43 days in filing the return of I.T.A No. 323/Ahd/2023 A.Y. 2020-21 Page No. Shree Rajendrapark Swetamber Murtipujak Sangh vs. ITO 3 income and Form 10B. The due date was 15.02.2021, but the return of income and Form 10B were filed on 30.03.2021. Due to the delay, the Assessing Officer considered the Trust as unregistered and denied exemption of Section 11 of the Income Tax Act, 1961 to the assessee. The CIT(A) dismissed the appeal on the said ground vide order dated 28.11.2022. The Ld. AR submitted that the assessee also filed application dated 11.08.2023 requesting the condonation of delay of 74 days in filing of Form 10B for A.Y. 2020-21, the said application is disposed off by the CIT(Exemption) vide order dated 22.09.2023 thereby condoning the delay. Therefore, the Ld. AR requested that the Assessing Officer be directed to grant the exemption under Section 11 of the Income Tax Act, 1961 and the demand raised by the Assessing Officer should be deleted. 6. The Ld. DR relied upon the Intimation order dated 30.11.2021, order of the CIT(A) and the order of the CIT(Exemption). 7. Heard both the parties and perused all the relevant material available on record. There is a delay of 95 days in filing the present appeal for which the assessee has filed the condonation of delay application. The reasons stated therein appears to be genuine, hence the delay is condoned. It is pertinent to note that the delay in filing the Form No. 10B along with the return of income has been condoned by the CIT(Exemption). Therefore, it will be appropriate to direct the Assessing Officer to grant the exemption to the Assessee under Section 11 of the Act and as per the provisions of the Income Tax Act, 1961 after verifying the same. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. I.T.A No. 323/Ahd/2023 A.Y. 2020-21 Page No. Shree Rajendrapark Swetamber Murtipujak Sangh vs. ITO 4 8. In result, appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open court on 18-10-2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad : Dated 18/10/2023 आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील य अ धकरण, अहमदाबाद