KALAIMAGAL EDUCATIONAL SOCIETY , CUDDALORE V. ADIT , CPC , BANGALORE

ITA 971/CHNY/2022

AI Insights

The case involves the Kalaimagal Educational Society, which appealed against the denial of deduction under sections 11 and 12 of the Income Tax Act, applicable to charitable trusts. The initial denial by the CPC was due to the non-filing of the Audit Report in Form No.10B by the due date. The CIT(A) upheld this decision, referencing the amended provisions of Sec.80AC. The appellant argued that the outcome of a condonation petition filed with the CBDT, which was still pending, would directly affect their claim. The Tribunal decided to set aside the CIT(A)'s order and remand the case for re-adjudication after the decision on the condonation petition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134407 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 30-05-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 16-11-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12; 11; 119(2)(b); 10B; 143(1)

Judgement Text

आयकर अपीलीय अिधकरण “सी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय +ी वी. द ु गा1 राव, ाियक सद2 एवं माननीय +ी मनोज कु मार अ7वाल ,लेखा सद2 के सम9। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ITA No.971/Chn y/2022 (िनधा1रणवष1 / Assessment Year: 2019-20) KALAIMAGAL EDUCATIONAL SOCIETY 58, Valayalkara Street, Kattumannarkoil Post, KattumannarkoilTaluk, Cuddalore-608 301. बनाम/ V s . ADIT CPC Bengaluru. थायीले खासं ./जीआइआ रसं ./PAN/GI R No.A AAT K -71 58- D (अ पीलाथ /Appellant) : ("#थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Ms. N.V.Lakshmi (Advocate) - Ld AR "#थ कीओरसे/Respondent by : Shri P.Sajit Kumar (JCIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 31-05-2023 घोषणाकीतारीख/Date of Pronouncement : 01-06-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by denial of deduction u/s 11 / 12 as applicable to a charitable trust, the assessee is in further appeal before us. From the record, it could be seen that CPC has denied the deduction while processing the return of income u/s 143(1) in view of the fact that the assessee did not file Audit Report in Form No.10B before due date of return of income. During appellate proceedings, the assessee erroneously mentioned Sec.80P in the grounds of appeal. The Ld. 2 ITA No. 971/Chny/2022 CIT(A), considering amended provisions of Sec.80AC, upheld the disallowance. Aggrieved, the assessee is in further appeal before us. 2. The Ld. AR, at the outset, clarified that the assessee had claimed deduction u/s 11 / 12 and the same has been denied since Form 10B was not filed within due date. The assessee, vide petition dated 03.04.2021, has sought condonation of delay from CBDT u/s 119(2)(b) which is stated to be pending for disposal. The Ld. AR submitted that the outcome of the same would have direct bearing on the assessee’s claim. The copy of petition filed before CBDT has been placed on record. The Ld. Sr. DR submitted that default in filing the requisite form as per statutory provisions has led to denial of deduction which is in accordance with law. 3. The bench formed an opinion that since the assessee’s petition before CBDT would have direct bearing on assessee’s claim, we set aside the impugned order and restore the appeal back to the file of Ld. CIT(A) who shall await the outcome of the aforesaid condonation petition and re-adjudicate the appeal de novo. The assessee is directed to intimate the outcome of the petition as and when the same is disposed- off. 4. The appeal stand allowed for statistical purposes. Order pronounced on 01 st June, 2023. Sd/- Sd/- (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) ाियक सद2/JUDICIAL MEMBER लेखासद2 / ACCOUNTANT MEMBER चे6ईChennai; िदनांकDated : 01-06-2023 DS आदेश की Xितिलिपअ 7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant2. यथ /Respondent 3. आयकरआय ु त/CIT4. वभागीय त न ध/DR 5. गाड फाईल/GF