M/S MR PRATAP PUBLIC CHARITABLE TRUST, CHENNAI V. ADIT,CPC, BANGALORE

ITA 83/CHNY/2023

AI Insights

The case involves M/s. M R Pratap Public Charitable Trust, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal arose from an intimation under section 143(1) of the Income Tax Act, 1961, by the CPC, Bengaluru, disallowing expenses amounting to Rs.88,890 for the assessment year 2018-19 due to non-filing of Form No.10B along with the return of income. The assessee argued that the audited accounts and audit report in Form No.10B were filed electronically within the time provided under section 139(9). The Tribunal decided to keep the legal issues and the issue on merits open for re-adjudication by the Assessing Officer after the CBDT's decision on the condonation petition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127463 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 26-02-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 24-01-2023
• Other Referred Cases: Jayant Patel case, Wipro Finance Ltd case
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

आयकर अपील य अ धकरण, ‘सी’/ SMC यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘C’ /SMC BENCH, CHENNAI ी महावीर संह, उपा य के सम BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT आयकरअपीलसं./I. T. A. No. 8 3/ Ch n y/ 2 02 3 ( नधा रणवष / A s se s sm ent Y ea r : 2 01 8- 19 ) M/s. M R Pratap Public Charitable Trust No.3, Villa Enchantrees, Ranjit Road Kotturpuram, Chennai-600 085. V s The ADIT, CPC , Bengaluru P AN: A AB T M 1 7 8 9 R (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओरसे/ Appellant by : Mr. R.Vijayaraghavan, Advocate यथ क ओरसे/Respondent by : Mr. AR.V.Sreenivasan, Addl.CIT स ु नवाईक तार ख/D a t e o f h e a r i n g : 27.02.2023 घोषणाक तार ख /D a t e o f P r o n o u n c e m e n t : 27.02.2023 आदेश / O R D E R This appeal filed by the assessee is arising out of order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi vide appeal No. ITBA/NFAC/S/250/2022-23 / 1048258865(1) dated 27.12.2022. The impugned intimation u/s.143(1) of the Income Tax Act, 1961 (hereinafter ‘the Act’) was passed by order dated 21.05.2019 for the relevant assessment year 2018-19 by the CPC., Bengaluru, by disallowing expenses amounting to Rs.88,890/-. 2. For this issue, the assessee has raised various grounds, including that the assessee has not filed Form No.10B along 2 ITA No. 83/Chny/2023 with return of income. The assessee has raised various issues vide ground no.2, which reads as under:- “1. The Commissioner of Income tax (Appeals), National Faceless Appeal Centre (NFAC) is contrary to law, facts and circumstances of the Act. 2. The Commissioner of Income tax (Appeals) erred in confirming the disallowance of charitable expenses amounting to Rs.88,890/-and adding to the total income of the appellant for not filling the Form-10B along with the return of Income. 2.1 The Commissioner of Income tax (Appeals) ought to have appreciated that during the course of appellate proceeding the appellant has filed the audited accounts and audit report in form no- 10B electronically on 11.12.2022, with in the time as provided u/s 139(9). 2.2 The Appellant had not been given an opportunity to rectify any defects in filing of the return as per Section 139(9) read with Explanation thereto. As this is a rectifiable defect u/s.139(9), the return and report should not have been rejected by the Commissioner of Income tax (Appeals). 2.3 The Commissioner of lncome tax (Appeals) ought to have appreciated that the jurisdictional High Court in the case of Jayant Patel has held that Audit Report can be filed in the course of Appellate proceedings. 2.4 The Commissioner of Income tax (Appeals) ought to have appreciated that as held by the Apex Court itself the decision of the Apex Court in Wipro Finance Ltd (rendered in the context of Section 10A), is not applicable to cases of belated filing of Audit Reports. 2.5 The Commissioner of Income tax (Appeals) ought to have accepted the Audit Report and should have decided the case on merits.” 3. Now, at the time of hearing, learned counsel for the assessee stated that he is ready to go back to the Assessing Officer, in case, other issues on merits are kept open for adjudication by the Assessing Officer, as the assessee has 3 ITA No. 83/Chny/2023 moved a petition before the CBDT for condonation of delay in filing Form No.10B. When this fact was pointed out to the learned Senior DR, he raised no objection. 4. After hearing both the sides, I am keeping the issues legal as well as issue on merits as open and the Assessing Officer will re-adjudicate the same after decision of the CBDT, whether condoning delay in filing Form No.10B or not. The Department will also take steps to get decision of CBDT at the earliest on the assessee’s condonation petition in Form No. 10B. The assessee will also pursue the matter with CBDT. In terms of above, order of the CIT(A) and that processing by CPC u/s.143(1) are set aside and matter is remanded back to the file of the Assessing Officer. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 27 th February, 2023 Sd/- (महावीर संह) (Mahavir Singh) उपा य / Vice-President चे$नई/Chennai, %दनांक/Dated 27.02.2023 DS 4 ITA No. 83/Chny/2023 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 न0ध/DR 6. गाड फाईल/GF.