SADHUBELLA EDUCATION SOCIETY ,MUMBAI V. ITO EXEMPTION 2(3), MUMBAI

ITA 3147/MUM/2025

AI Insights

The case involves Sadhubella Education Society, which appealed against the order of the NFAC, Delhi, pertaining to the assessment year 2015-16. The primary grievance was the confirmation of the addition of Rs. 54,90,510 by disallowing the exemption under Section 11 of the Income Tax Act, on the grounds that registration under Section 12A(2) was only granted from the financial year 2016-17. The Tribunal noted that the CIT(A) had dismissed the appeal in limine without examining the merits or the applicability of the proviso to Section 12A(2). Consequently, the Tribunal restored the matter to the CIT(A) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652858 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: 2015-2016
• Laws Referred To: Section 11 of the Income Tax Act, Section 12A(2) of the Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KAVITA P. KAUSHIK; DR
• Assessee Lawyers: DEEPA KHARE; AR
• Keywords: Opportunity of being heard
• Section: 11; 12A; 12; 10B

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 3147/Mum/2025 Assessment Year: 2015-16 Sadhubella Education Society Near Govt. Dispensary Ulhasnagar, Thane Maharashtra - 421001 [PAN: AAATS0753L] Vs ITO, Exemption – 2(3), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Ms. Deepa Khare, A/R Revenue by : Ms. Kavita P. Kaushik, Sr. D/R सुनवाई की तारीख/Date of Hearing : 16/06/2025 घोषणा की तारीख /Date of Pronouncement: 16/06/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dt. 08/02/2024 by NFAC, Delhi [hereinafter “the ld. CIT(A)”] pertaining to AY 2015-16. 2. The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in confirming the addition of Rs. 54,90,510/- by disallowing the exemption u/s 11 of the Act on the ground that registration u/s 12A (2) of the Act has been granted w.e.f. FY 2016-17 and further erred in no considering the proviso to Section 12A(2) of the Act and provisions u/s 11 and 12 of the Act. 3. There is a delay in filing the appeal. The assessee has filed an affidavit explaining the facts causing the delay. We have carefully considered the contents of the affidavit. We are of the considered view I.T.A. No. 3147/Mum/2025 2 that the assessee was prevented by reasonable and sufficient cause for not filing the appeal in time. Therefore, the delay is condoned. 4. Coming to the facts of the case, the assessee filed its return of income on 16/03/2017 along with income and expenditure account, balance sheet and audit report in Form No. 10B declaring total income at Rs. Nil. The return was selected for scrutiny assessment and accordingly statutory notices were issued and served upon the assessee. The assessee responded to the queries raised from time to time. On perusal of the details furnished by the assessee, the AO found that the assessee has claimed exemption u/s 11 of the Act, however, the AO notice that the ld. CIT(E) has granted the registration only w.e.f. FY 2016- 17. The AO accordingly denied the benefits of Section 11 of the Act and assessed income at Rs. 54,90,510/-. The assessee agitated the matter before the ld. CIT(A) but without any success. In fact on perusal of the order of the ld. CIT(A), we find that the appeal has been dismissed in limine for want of prosecution. 5. We have given a thoughtful consideration to the orders of the authorities below. It is an undisputed fact that the ld. CIT(A) has dismissed the appeal in limine without going into the merits of the case and without examining the applicability of the proviso to Section 12A(2) of the Act. Therefore, in the interest of justice and fairplay, we deem it fit to restore the appeal to the files of the ld. CIT(A) with a direction to decide the appeal afresh after affording a reasonable and adequate opportunity of being heard to the assessee and after considering the proviso to Section 12A(2) of the Act. I.T.A. No. 3147/Mum/2025 3 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 16th June, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 16/06/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0014ितिलिप अ\u0019ेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "