POOMAGAL EDUCATIONAL AND SOCIAL TRUST,TIRUPUR V. ACIT, EXEMPTIONS, COIMBATORE

ITA 1194/CHNY/2025

AI Insights

The case involves Poomagal Educational and Social Trust, which appealed against the decision of the Assistant Commissioner of Income Tax (Exemptions), Coimbatore, regarding the denial of exemption under section 10(23C)(vi) of the Income-tax Act, 1961 for the Assessment Year 2016-17. The exemption was initially denied because the audit report in Form 10BB was not filed within the stipulated time. The Trust argued that the report was filed along with the return under section 139(4), which does not require a condonation petition as per the precedents cited. The Tribunal agreed with the Trust's position, referencing decisions from the Madras High Court and the ITAT Pune Bench, and reversed the decision of the lower authorities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706075 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2016-2017
• Other Referred Cases: Chandraprabhuji Maharaj Jain v. DCIT [2019] 110 taxmann.com 11 (Mad), ACIT v. Nanded Sikh Gurudwara Sachkhand Hazur Sahib [2025] 174 taxmann.com 1116 (Pune-Trib.)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR
• Assessee Lawyers: SURAJ NAHAR; C.A
• Section: 154

Judgement Text

" आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1194/Chny/2025 िनधा :रण वष: /Assessment Year: 2016-17 Poomagal Educational and Social Trust, 2nd Street, No.7, Sheriff Colony, Tirupur – 641 604. [PAN: AAATP 4505B] Vs. The Asst. Commissioner of Income Tax (Exemptions), Coimbatore. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थH की ओर से/ Appellant by : Shri Suraj Nahar, C.A JKथH की ओर से /Respondent by : Shri Vijay Kumar, JCIT सुनवा ई की ता रीख/Date of Hearing : 17.06.2025 घोषणा की ता रीख /Date of Pronouncement : 30 .06.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2016-17 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 20.02.2025. ITA No.1194/Chny/2025 Poomagal Educational and Social Trust :- 2 -: 2. The only issue involved in this case is that the CPC, Bengaluru, in the order passed u/s 154 r.w.s 143(1) of the Income-tax Act, 1961 (hereinafter “the Act”), has not allowed the exemption claimed u/s. 10(23C)(vi) of the Act, on the ground that the assessee did not file the audit report in Form 10BB within the stipulated time. 3. At the outset, the Learned Authorized Representative (AR) of the assessee submitted that the return of income was filed on 31.03.2018 along with the audit report in Form-10BB. It was further stated that the return was processed on 12.12.2018, but the claim of exemption u/s. 10(23C)(vi) of the Act was not allowed. The Ld. AR submitted that, as per section 10(23C)(vi) of the Act, the requirement is to furnish the audit report along with the return of income, and there is no stipulation that it must be filed within the due date prescribed u/s 139(1) of the Act. It was contended that since the return, along with the audit report, was filed u/s 139(4) of the Act, there was no requirement to file a condonation petition, as held by the Ld. CIT(A). In support of this contention, the Ld. AR relied on the judgment of the Hon’ble Madras High Court in Chandraprabhuji Maharaj Jain v. DCIT [2019] 110 taxmann.com 11 (Mad) and the decision of the ITAT Pune Bench in ITA No.1194/Chny/2025 Poomagal Educational and Social Trust :- 3 -: ACIT v. Nanded Sikh Gurudwara Sachkhand Hazur Sahib [2025] 174 taxmann.com 1116 (Pune-Trib.). 4. The Ld. Departmental Representative (DR), relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. The assessee has filed the return of income along with the audit report in Form 10BB on 31.03.2018 u/s 139(4) of the Act. The CPC and the Ld. CIT(A) denied the exemption claimed u/s 10(23C)(vi) of the Act on the ground that the audit report was not filed within the due date, i.e., 17.10.2016. We agree with the submission of the Ld. AR that, for claiming exemption u/s 10(23C)(vi) of the Act, the requirement is that the assessee must get its accounts audited by an accountant, as defined in the Explanation below sub- section (2) of section 288, and furnish the audit report in the prescribed form, duly signed and verified, along with the return of income. We are of the view that assessee has complied with the provision of section 10(23) as it has filed the return along with the audit report. Accordingly, we direct the A.O to allow the exemption claimed u/s ITA No.1194/Chny/2025 Poomagal Educational and Social Trust :- 4 -: 10(23C)(vi) of the Act. In view of the above, the appeal filed by the assessee is allowed. 6. In the result, the appeal filed by the assessee is allowed. Order pronounced on 30th day of June, 2025 at Chennai. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 30th June, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Coimbatore 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "