SKI STAR FOUNDATION , CHENNAI V. ACIT , BANGALORE

ITA 923/CHNY/2022

AI Insights

The case involves SKI Star Foundation, which appealed against the order of the Commissioner of Income Tax, National Faceless Appeal Centre, Delhi, concerning the denial of deduction under section 11 of the Income Tax Act for the Assessment Year 2019-20. The denial was due to the late filing of Form No.10B, which is mandatory for claiming exemption under section 11. The Income Tax Appellate Tribunal (ITAT) found that while the filing of Form No.10B was indeed mandatory, the CIT(A) should have awaited the decision on the assessee's condonation application before dismissing the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134027 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 06-02-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 01-11-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE. HOWEVER LD
• Keywords: Condonation of delay
• Section: 11; 10B

Judgement Text

आयकर अपीलीय अिधकरण ‘सी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा01 एवं माननीय +ी मनोज कु मार अ6वाल ,लेखा सद9 के सम1। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.923/Chny/2022 (िनधाBरण वषB / Assessment Year: 2019-20) SKI Star Foundation No.52, Sarangapani Street, T. Nagar, Chennai – 600 017. बनाम/ V s. ACIT CPC, Bengaluru. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AAU TS -0 2 9 9 - R (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : None थ की ओरसे/Respondent by : Shri P. Sajit Kumar (JCIT) –Ld. DR सुनवाई की तारीख/Date of Hearing : 07-02-2023 घोषणा की तारीख /Date of Pronouncement : 07-02-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019- 20 arises out of the order of learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 06-08- 2022 in the matter of an rectified intimation issued by CPC, Bengaluru u/s. 154 on 17-05-2021. The assessee is aggrieved by denial of deduction u/s 11 for want of filing of Form 10B in time. 2. At the time of hearing, none appeared for assessee. However Ld. Sr. DR supported the impugned order and submitted that filing of Form ITA No.923/Chny/2022 - 2 - No.10B along with return of income was mandatory requirement. After perusal of case records, the appeal is disposed-off as under: - 3. The assessee filed its return of income claiming exemption u/s. 11. However, the assessee did not file Audit Report in Form No.10B along with the return of income and it was filed belatedly. Accordingly, in an intimation u/s. 143(1), CPC denied the exemption claimed by the assessee u/s. 11 of the Act. The rectification request u/s. 154 of the Act filed by the assessee was also rejected. Consequently, the assessee filed application with the CIT (Exemptions) seeking condonation of delay in filing of Form No.10B. 4. In the meanwhile, the assessee preferred further appeal against intimation issued u/s 154 and submitted that filing of Form 10B was only directory and not mandatory requirement and belated filing of audit report should not have resulted in denial of exemption u/s. 11 of the Act. The Ld. CIT(A) observed that CBDT has delegated the power of condonation of delay to CIT(Exemptions) or Chief Commissioners of Income tax. The assessee already filed condonation of application before CIT (Exemptions), Chennai on 07.03.2021 which was pending for disposal. Nevertheless, the action of CPC was correct on the facts of the case and the assessee was free to follow up with CIT (Exemptions) for condonation of delay. Accordingly, the appeal was dismissed against which the assessee is in further appeal before us. 5. We concur with the findings that filing of Audit Report in Form No.10B was mandatory requirement to claim exemption u/s 11. However, since the assessee’s application for condonation was already pending before appropriate authority, Ld. CIT(A) should have waited for disposal of the same before rejecting the assessee’s appeal ITA No.923/Chny/2022 - 3 - since the same would have direct bearing on assessee’ claim. Therefore, we restore the appeal back to the file of Ld. CIT(A) with a direction to pass the appellate order after considering the outcome of assessee’s condonation application. 6. The appeal stand allowed for statistical purposes. Order pronounced on 07 th February, 2023. Sd/- (MAHAVIR SINGH) उपा01 /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद9 / ACCOUNTANT MEMBER चे*ई / Chennai; िदनांक / Dated : 07-02-2023 EDN/- आदेश की Vितिलिप अ 6ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु /CIT 5. िवभागीय ितिनिध/DR 6. गाड फाईल/GF