ITO, EXEMPTION WARD-3, CHENNAI V. THE PROPERTY ASSOCIATION OF BAPTIST CHURCHES PVT. LTD., CHENNAI

MA 101/CHNY/2025

AI Insights

The case involves the Income Tax Officer (Exemptions), Ward-3, Chennai as the appellant and The Property Association of Baptist Churches Pvt. Ltd. as the respondent. The core issue was the disallowance of exemption under section 11 of the Income-tax Act, 1961, due to the non-filing of the audit report in Form-10B within the prescribed due date for the assessment years 2016-17 & 2017-18. The ITAT had previously restored the matter to the file of the CIT(A) for de novo adjudication pending a decision on the condonation of delay by the CIT(E). However, it was later brought to notice that no condonation petition had been filed, leading to the Revenue's MAs to rectify this oversight.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707144 (ITAT-CHENNAI)
• Duration Of Justice: 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-07-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 20-06-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: A. NIKITHA
• Keywords: Condonation of delay
• Section: 11

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। N THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER M.A Nos.101 & 102/Chny/2025 (Arising out of ITA Nos.2355 & 2356/Chny/2024) िनधा*रण वष* /Assessment Years: 2016-17 & 2017-18 The Income Tax Officer (Exemptions), Ward-3, Chennai. Vs. The Property Association of Baptist Churches Pvt. Ltd., 903, Tower E2 Ekanta North Town, Stephension Road, Perambur, Chennai – 600 012. [PAN: AABCT 2815J] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/Assessee by : Ms. A. Nikitha, Advocate ./थ की ओर से /Revenue by : Ms. Gouthami Manivasagam,JCIT सुनवाई की तारीख/Date of Hearing : 04.07.2025 घोषणा की तारीख /Date of Pronouncement : 10.07.2025 आदेश / O R D E R PER JAGADISH, A.M : By way of these Miscellaneous Applications (MAs), the Revenue seeks to restore the orders of Ld CIT(A) passed by the Tribunal in ITA Nos.2355 & 2366/Chny/2025 dated 31.01.2025. 2. The Ld. Departmental Representative (D.R) has submitted that the Hon’ble ITAT has passed common order in ITA Nos.2355 & 2366/Chny/2025 dated 31.01.2025 and the main issue under M.A Nos.101 & 102/Chny/2025 The Property Association of Baptist Churches Pvt. Ltd., :- 2 -: consideration was disallowance of exemption u/s. 11 of the Income-tax Act, 1961 (hereinafter “the Act”) due to non filing of audit report in Form-10B within the prescribed due date for A.Y 2016-17 & 2017-18. The Ld. DR has further submitted that the Hon’ble ITAT in the appeal order passed, at para 6 has observed that the assessee has filed petition for condonation of delay in filing the audit report before the Ld. CIT(E) which is pending before Ld. CIT(E) and accordingly restored the matter to the file of Ld. CIT(A) for denovo adjudication after decision of Ld. CIT(E) on condonation of delay. The Ld. DR has submitted that as per record of Ld CIT(E), the assessee has not filed condonation petition before Ld. CIT(E) and therefore there is a mistake apparent from the record in the order of Hon’ble ITAT and the order may be rectified by restoring the order of Ld CIT(A). On being confronted, the Ld AR stated that condonation petition has not been filed by the assessee before the Ld. CIT(E), therefore there is mistake apparent from the record in the order of Hon’ble ITAT and the order may be recalled and the appeals be re-fixed for hearing. 3. We have heard the rival submissions, and perused the materials available on record. We find that the two cases were listed as simple issues on 21.11.2024. The main issue under consideration was disallowance of exemption u/s. 11 of the Income-tax Act, 1961 M.A Nos.101 & 102/Chny/2025 The Property Association of Baptist Churches Pvt. Ltd., :- 3 -: (hereinafter “the Act”) due to non filing of audit report in Form-10B within the prescribed due date for A.Y 2016-17 & 2017-18. The ITAT in the appeal order passed, in para 6 has observed that the assessee has filed petition for condonation of delay in filing the audit report before the Ld. CIT(E) which is pending before Ld. CIT(E) and accordingly restored the matter to the file of Ld. CIT(A) for denovo adjudication after decision of Ld. CIT(E) on condonation of delay. The Department by way of the MAs, has brought in our notice that no condonation petition has been filed by the assessee before the Ld. CIT(E). Therefore, there is a mistake apparent from record in the order of ITAT. We accordingly recall the order dated 31.01.2025 in ITA Nos. 2355 & 2366/Chny/2025 and direct the Registry to list both appeals for fresh hearing in the regular course. In light of above, both the MAs filed by the Revenue are allowed. 5. In the result, both the MAs filed by the Revenue are allowed. Order pronounced on 10th July, 2025. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 10th July, 2025. EDN/- M.A Nos.101 & 102/Chny/2025 The Property Association of Baptist Churches Pvt. Ltd., :- 4 -: आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "