SHEVAROYS VIRUTHAMBAL CHARITABLE TRUST,SALEM V. ITO, EXEMPTION WARD, SALEM

ITA 1066/CHNY/2025

AI Insights

The case involves the Shevaroys Viruthambal Charitable Trust, which appealed against the order of the Commissioner of Income Tax (Appeals), Delhi, concerning the assessment year 2017-18. The Trust, registered under section 12A of the Income Tax Act, filed a return claiming exemption under sections 11 and 12, which was initially denied by the Assessing Officer due to the belated filing of the return. The CIT(E) later condoned the delay in filing Form-10B, but the CIT(A) dismissed the Trust's appeal ex-parte without considering this order. The Tribunal found merit in the Trust's argument and remitted the matter back to the Assessing Officer to reconsider the exemption claim in light of the CIT(E)'s order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708877 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Keywords: Charitable institution
• Section: 144; 11; 12A; 12; 119(2)(b); 10B

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1066/Chny/2025 िनधा9रण वष9 /Assessment Year: 2017-18 Shevaroys Viruthambal Charitable Trust, 1, Hospital Road Yercaud, Salem – 636 601. [PAN: AAATS 8481R] Vs. The Income Tax Officer, Exemptions Ward, Salem. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : None HIथ की ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 18.06.2025 घोषणा की तारीख /Date of Pronouncement : 16.07.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 17.03.2025 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 of the Income-tax Act,1961 (hereinafter “the Act”) on 31.12.2019. ITA No.1066/Chny/2025 Shevaroys Viruthambal Charitable Trust :- 2 -: 2. The assessee is a registered trust u/s. 12A of the Act. The assessee has filed its return of income along with Form-10B on 30.07.2019 showing total income Nil after claiming exemption u/s. 11 & 12 of the Act. The Assessing Officer in the assessment order has made an addition of Rs. 1,51,43,413/- towards excess of income over expenditure denying exemption u/s 11 & 12 of the Act, as the return was filed belatedly. Aggrieved, the assessee filed an appeal before the Ld. CIT(A) on 31.01.2020. The Ld. CIT(A) dismissed the appeal ex- parte. 3. The Ld. Authorized Representative (A.R) of the assessee has submitted that the A.O has denied the exemption u/s 11 &12 as the return was filled belatedly, but subsequently the Ld. CIT(E) has condoned the delay in filing Form-10B u/s. 119(2)(b) of the Act vide order dated 30.03.2024. The Ld AR submitted that the Ld. CIT(A) has not considered the order of Ld CIT(E) , therefore requested that one more opportunity may be granted in the interests of justice to substantiate its claim. 4. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. ITA No.1066/Chny/2025 Shevaroys Viruthambal Charitable Trust :- 3 -: 5. We have heard the rival submissions, and perused the materials available on record. It is noted that the A.O has denied the exemption u/s. 11 and 12 of the Act solely on the ground that the return along with Form 10B was filed belatedly. The Ld. A.R has submitted a copy of the order passed by the Ld. CIT(E) condoning the delay in filing Form 10B. Considering the above and in the interest of justice, we deem it appropriate to remit the matter back to the file of the A.O to give effect to the order of the Ld. CIT(E) and allow the claim u/s. 11 and 12 in accordance with law. We also direct the assessee to appear before the A.O on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 16th day of July, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 16th July, 2025. EDN/- ITA No.1066/Chny/2025 Shevaroys Viruthambal Charitable Trust :- 4 -: आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Salem 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "