M/S. SOUTH INDIA ARTISTES ASSOCIATION,CHENNAI V. DCIT, EXEMPTIONS, CHENNAI

ITA 3222/CHNY/2024

AI Insights

The case involves the South India Artistes Association appealing against the order of the Additional/Joint Commissioner of Income Tax (Appeals)-4, which had dismissed their earlier appeal due to a significant delay in filing. The delay was attributed to internal governance issues and legal challenges concerning the society's elections, which were not resolved until March 2022. The Tribunal considered the unique circumstances of the society's governance and the lack of a competent authority during the disputed period, leading to the decision to condone the delay and remand the case for a fresh adjudication on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29361 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M. ASWATHY
• Assessee Lawyers: D.ANAND
• Keywords: Competent authority
• Section: 143(1)

Judgement Text

" आयकर अपीलीय अिधकरण ‘सी’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.3222/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2017-2018) M/s. South India Artistes Association, Old No.7, New No.21, G-1, Nanda Apartments, Habibullah Road, T. Nagar, Chennai 600 017. [PAN: AAAAT 6561A] Vs. The Deputy Commissioner of Income Tax (Exemptions) Chennai 600 034. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri D. Anand, Advocate Ĥ×यथȸ कȧ ओर से /Respondent by : Ms. M. Aswathy, JCIT. सुनवाई कȧ तारȣख/Date of Hearing : 24.02.2025 घोषणा कȧ तारȣख /Date of Pronouncement : 24.02.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal by assessee is arising out of the order of the Additional/Joint Commissioner of Income Tax (Appeals)-4, Office of the Commissioner of Income Tax (Appeal), Mumbai in Order No.ITBA/APL/S/250/2024-25/1067153026 (1), dated 30.07.2024 for the assessment year 2017-2018. 2 ITA No. 3222 /Chny/2024 2. The registry has noted delay of 78 days in filing the appeal. Considering the period of delay and reasons stated in the condonation petition which is supported by an affidavit of the assessee, we condone the delay and admit the appeal for adjudication. 3. Brief facts of the case are that the appeal was instituted on 07.03.2023 against the assessment order dated 11.12.2019 passed under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') by the Assessing Officer (in short 'the AO') CPC for the Assessment Year 2017-18. The assessee further challenged the order of assessment u/s 143(1) of the Act before the ld.CIT(A) who dismissed the appeal of the assessee in limine on the ground of delay of 3 years and 2 months days in filing appeal. Aggrieved, assessee is in appeal before us. 4. The ld. Counsel for assessee submitted before us that the Society was founded in the year 1952 and as per the Society By law the Governing Body of the Society shall be elected by their members once in three years. The Last election of the assessee society was held on June 23 2019 and it was challenged before the Madras High Court. The Tamilnadu Government vide its Government Order MS 177 CT and R M1 dated 6th November 2019 appointed a special officer to conduct administration of assessee society. The Counting of votes were put under abeyance and special officer was appointed for assessee society by the Tamilnadu Government to conduct the operation of the Society. Only in February 2022 the 3 ITA No. 3222 /Chny/2024 Madras High Court ruled that the election held in 2019 was valid and ordered initiation of vote counting process Subsequently new team was elected in March 2022. Ld. Authorized Representative further contended that there were no Competent Authority from June 2019 to March 2022 to decide on the process of appeal and further course of action on the intimation under section 143 (1) of the Act. Hence there was delay in filing the appeal before the ld. CIT(A) and requested to condone the delay and remit the file back to the ld. CIT(A) for fresh adjudication. 5. Per contra, the ld. Departmental Representative stated that no lenient view is to be taken in this case and prayed for confirming the orders of the lower authorities. 6. We heard the rival contentions and perused the material available on record. As per the ld. AR there is no Competent Authority from June 2019 to March 2022 to file the appeal before the ld. CIT(A). Further, the ld. CIT(A) has not adjudicated the appeal on merits. To meet the ends of justice, we condone the delay in filing the appeal before the ld. CIT(A) and direct the ld. CIT(A) the adjudicate the appeal on merits. The assessee is directed to substantiate its case with all evidence, confirmations and documents, if any, forthwith without any fail, failing which ld.CIT(A) shall be at liberty to proceed with the disposal of appeal on merits as per law. The appeal of the assessee is allowed for statistical purpose. 4 ITA No. 3222 /Chny/2024 7. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 24th day of February, 2025 Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated :24-02-2025 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "