PATRIA SURAKSHAA TRUST,CHENNAI V. CIT(EXEMPTION), CHENNAI

ITA 2304/CHNY/2024

AI Insights

The case involves Patria Surakshaa Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Chennai, which had rejected the Trust's application for condoning the delay in filing the Audit Report in Form 10B for the assessment year 2021-22. The Trust argued that the delay was due to the trustee being bedridden with medical complications from the COVID-19 pandemic. The Tribunal considered the Supreme Court's relaxation of statutory compliance deadlines during the pandemic and the Trust's history of timely compliance, ultimately deciding in favor of the Trust.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107151 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KEERTHI NARAYANAN
• Keywords: Condonation of delay
• Section: 10B

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u000eा यपीठ, चे\u0013ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0016ी एबी टी. वक\u001a, \u000eा ियक सद\u001d एवं \u0016ी अिमता भ शु$ा , लेखा सद\u001d क े सम& BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2304/Chny/2024 िनधा (रण वष(/Assessment Year: 2021-22 Patria Surakshaa Trust, No.9, Chockalingam Nagar, Teynampet, Chennai – 600 086. [PAN: AADTP 4062E] Vs. The Commissioner of Income Tax (Exemption), Chennai. (अपीला थ\u001a/Appellant) (+,थ\u001a/Respondent) अपीला थ\u001a की ओर से/ Appellant by : None +,थ\u001a की ओर से /Respondent by : Shri Keerthi Narayanan, JCIT सुनवा ईकीता रीख/Date of Hearing : 23.12.2024 घोषणा कीता रीख /Date of Pronouncement : 05.02.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal filed by the assessee trust against the order of the Ld. Commissioner of Income Tax (Exemption), Chennai (hereinafter in short “CIT(E)\") dated 22.06.2024 for assessment year 2021-22 (hereinafter in short “AY\"). 2. At the outset, we note that the appeal was filed with a delay of 12 days. On perusal of the petition filed for condonation of delay and after hearing the Ld. DR, we find that there was sufficient cause, which ITA No.2304/Chny/2024 (AY 2021-22) Patria Surakshaa Trust :: 2 :: prevented the assessee from filing the appeal in time. Thus, the delay of 12 days in filing the appeal is condoned and admit the appeal for adjudication. 3. The main grievance of the assessee is against the action of the Ld.CIT(E) rejecting the application for condoning the delay u/s.119(2)(b) of the Income Tax Act, 1961 [herein after “Act”] filed in Form 10B for the AY 2021-22. 4. Brief facts are that the assessee trust was registered u/s.12A/12AA of the Act vide order dated 31.01.2018. After the amendment made in the Act, the assessee renewed its registration by an order dated 23.09.2021 with effect from AY 2022-23 to AY 2026-27 and thus got provisional registration u/s.80G of the Act on 23.09.2021 for the same period, supra. According to the assessee trust, it carried out philanthropic/charitable activities towards poor people, disbursing scholarship and school fees to college students and provide books and study materials to them as well as charity to bring down crime and accident control measures and other public charitable activities. In the year under consideration, the assessee had filed return of income u/s.139(1) of the Act on 28.12.2021 but belatedly filed the audit report in Form 10B on 18.10.2022 (due date was 15.02.2022). ITA No.2304/Chny/2024 (AY 2021-22) Patria Surakshaa Trust :: 3 :: Since the audit report in Form 10B was belatedly filed, the assessee filed an application dated 30.11.2022 before Ld.CIT(E) praying for condoning the delay in filing of Form 10B. However, the Ld.CIT(E) after going through the reasons submitted by the assessee Trust being not satisfied has rejected the ibid application seeking condonation of delay. Aggrieved by the aforesaid action of Ld.CIT(E), the assessee is before us. 5. None appeared for the assessee trust. However, after going through the records and after hearing Ld.DR of the Department, we take note of the fact that the assessee had brought to the notice of the Ld.CIT(E) that the assessee’s trust was formed on 14.06.2017 and it always complied with the statutory requirement of filing in time the return of income as well as audit reports. However in the year under consideration, the assessee could not file the audit report because Trustee was bed-ridden due to medical complications arising out of the Covid-19 pandemic. However, the Ld.CIT(E) was not convinced, since the assessee didn’t produce any material to substantiate its claim, so, he rejected the application for condonation of delay in filing of audit report in Form 10B. We do not countenance the impugned action of the Ld.CIT(E) and take judicial notice of the “Taxation and other laws (Relaxation and Amendment of certain Provisions of the Act, 2020)” and the Hon’ble Supreme Court orders (suo ITA No.2304/Chny/2024 (AY 2021-22) Patria Surakshaa Trust :: 4 :: motto taken considering Covid-19 Pandemic) wherein the Hon’ble Supreme Court has relaxed the compliance of provisions of the Act from 20.03.2020 to 28.03.2022 and extending it to 90 more days i.e., upto 28.05.2022; and further note that the TOLA was seen extended upto 30.03.2023 for compliance of different statutory provisions by the Department. In the light of the same, as well as the past history of the assessee and considering the reasons stated by assessee for belated filing of audit report, we are of the view that these are adequate to excuse the delay. Thus, going by the operation of TOLA and suo-motto orders of the Hon’ble Supreme Court, we are of the considered view that the delay caused for belated filing of Audit Report on 18.10.2022 needs to be condoned and we order so. Therefore, we direct the Ld.CIT(E) to condone the delay in filing of Audit Report - Form 10B. . 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 05th February, 2025 at Chennai. Sd/- (अिमताभ शु ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक\u0012) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER ITA No.2304/Chny/2024 (AY 2021-22) Patria Surakshaa Trust :: 5 :: चे\u0003ई/Chennai, \u0005दनांक/Dated: 05th February, 2025. RSR आदेश की +ितिलिप अ0ेिषत/Copy to: 1. अपीला थ\u001a/Appellant, 2.+,थ\u001a/ Respondent, 3. आयकर आयु1/CIT, Chennai 4. िवभा गीय +ितिनिध/DR & 5. गा ड( फा ईल/GF. "