P.KESAVADEV TRUST,TRIVANDRUM V. ITO, EXEMPTION WARD, TRIVANDRUM

ITA 871/COCH/2024

AI Insights

The case involves P. Kessvadev Trust, a charitable trust registered under the Trust Act and under section 12A of the Income Tax Act, 1961, which filed an appeal against the order of the Commissioner of Income Tax (Appeals)-1, Chandigarh. The dispute arose from the Income Tax Officer's (AO) decision to deny exemption under section 11 of the Income Tax Act for certain expenditures related to a Diabetes Convention, which the AO deemed not to be incurred on medical relief. The CIT(A) had dismissed the trust's appeal for non-prosecution, which was due to the personal issues faced by the Managing Trustee's wife, who managed the trust's affairs.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315695 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: VARSHA NAMBIAR
• Keywords: Condonation of delay; Set aside; Reasonable cause; Charitable institution
• Section: 143(3); 11; 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI GEORGE GEORGE K., VP AND SHRI INTURI RAMA RAO, AM ITA No. 871 /Coch/2024 Assessment Year: 2016-17 P. Kessvadev Trust .......... Appellant Lakshmi Nilayam, P. Kesavadev Road Mudavanmugal, Thiruvananthapuram 695012 [PAN: AABTP0563E] vs. The Income Tax Officer (Exemption) .......... Respondent Thiruvananthapuram Appellant by: Ms. Varsha Nambiar, Advocate Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 08.04.2025 Date of Pronouncement: 13.05.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-1, Chandigarh [CIT(A)], dated 01.03.2024 for Assessment Year (AY) 2016-17. 2. Brief facts of the case are that the appellant is a charitable trust registered under the Trust Act. The appellant trust is formed with the objects of rendering medical relief to the public. The appellant trust is also registered u/s. 12A of the Income Tax Act, 1961 (the Act). The return of income for AY 2016-17 was filed on 2 ITA No. 871/Coch/2024 P. Kessvadev Trust 08.10.2016 disclosing Nil income. Against the said return of income, the assessment was completed by the Income Tax Officer (Exemption), Thiruvananthapuram (hereinafter called \"the AO\") vide order dated 22.12.2018 passed u/s. 143(3) of the Act at a total income of Rs. 21,88,668/-. While doing so, the AO had denied exemption u/s. 11 of the Act in respect of expenditure incurred on travel and accommodation of the doctors who attended the meeting relating to Diabetes Convention at Jyodidev Research Centre. The AO was of the opinion that this expenditure cannot said to be incurred on medical relief. Accordingly denied exemption and brought to tax the net of the income over expenditure of Rs. 17,51,427/-. 3. Being aggrieved, an appeal was filed before the CIT(A) challenging the findings of the AO that the activity of the appellant is not charitable in nature. The learned CIT(A) had dismissed the appeal for non prosecution on merits. 4. At the outset, we find that there is a delay of 169 days in filing the present appeal. The appellant filed a petition along with an affidavit seeking condonation of delay in filing the appeal, wherein it is stated that wife of the Managing Trustee was looking after the affairs of the trust including correspondence with Income Tax Department. Owing to certain family related issues she was undergoing stress resulting into depression. Consequently the emails from the Income Tax Department were missed. It is submitted that 3 ITA No. 871/Coch/2024 P. Kessvadev Trust the delay had occurred on account of factors beyond the control of the appellant. Therefore it is prayed that the delay in filing the appeal may be condoned and the appeal may be admitted for adjudication. On a perusal of the averments made in the condonation petition, it is evident that the appellant is prevented by reasonable cause from filing the appeal. Therefore, we condone the delay and admit the appeal for adjudication. 5. The learned counsel for the assessee submits that the appellant could not put in appearance before the CIT(A) because of the wife of the Managing Trustee, Smt. Sunitha Jothydev, who was looking after the affairs of the appellant trust was undergoing stress following depression and consequently the emails received from the CIT(A) could not be responded to. Therefore, it is prayed that the exparte order passed by the CIT(A) may be set aside. 6. On the other hand, the ld. Sr. DR had no serious objection for remand of the matter to the CIT(A). 7. We have heard rival contentions and perused the material available on record. We find that the CIT(A) had passed exparte order for non persecution. We are satisfied with the reasons given for non prosecution before the CIT(A). Therefore, we are of the considered opinion that in the interest of justice the matter may be remanded back to the file of CIT(A) for fresh disposal in accordance with law after affording reasonable opportunity of hearing to the appellant. 4 ITA No. 871/Coch/2024 P. Kessvadev Trust 8. In the result, appeal filed by the assessee stands partly allowed. Order pronounced in the open court on 13th May, 2025. Sd/- Sd/- GEORGE GEORGE K. VICE PRESIDENT (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 13th May, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin "