SHISHU KALYAN SHIKKHA SAMITI, MAHASAMUND,MAHASAMUND V. INCOME TAX OFFICER, EXEMPTION WARD, RAIPUR, RAIPUR

ITA 164/RPR/2025

AI Insights

The case involves Shishu Kalyan Shikkha Samiti, a charitable trust, which appealed against the order of the CIT(Appeals)/NFAC, Delhi, for the assessment year 2014-15. The primary issue was the non-condonation of a 6-day delay in filing the appeal by the CIT(Appeals), which the Tribunal found to be unjustified. The trust, engaged in providing education to underprivileged children, faced a penalty under section 272A(2)(e) of the Income Tax Act, 1961, for not filing its return of income by the due date as required under section 139(4C) of the Act. The Tribunal noted the lack of inquiry by the CIT(Appeals) and the absence of consideration of the merits of the case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314447 (ITAT-RAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Other Referred Cases: Vidya Shankar Jaiswal Vs. ITO, Ward-2, Ambikapur, Inder Singh Vs. the State of Madhya Pradesh
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: DIMPLE WARLYANI
• Keywords: Reasonable cause; Principle of natural justice; Charitable institution

Judgement Text

"आयकर अपीलȣय अͬधकरण Ûयायपीठ रायपुर मɅ। IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.164/RPR/2025 Ǔनधा[रण वष[ / Assessment Year : 2014-15 Shishu Kalyan Shikkha Samiti Panchsheel Nagar, Mahasamund, Chhattisgarh-493 445 PAN: AANTS0821N ........अपीलाथȸ / Appellant बनाम / V/s. The Income Tax Officer, Exemption Ward, Raipur (C.G) ……Ĥ×यथȸ / Respondent Assessee by : Mrs. Dimple Warlyani, CA Shri Bikram Jain, CA Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 06.05.2025 घोषणा कȧ तारȣख / Date of Pronouncement : 07.05.2025 2 Shishu Kalyan Shikkha Samiti Vs. ITO, Exemption, Raipur ITA No. 164/RPR/2025 आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM: This appeal preferred by the assessee emanates from the order of the Ld. CIT(Appeals)/NFAC, Delhi dated 25.01.2025 for the assessment year 2014-15 as per the grounds of appeal on record. 2. At the very outset, it is noted that the Ld. CIT(Appeals)/NFAC had not condoned the delay of 6 days in filing of the appeal before him. That as evident from Para 2 of the order of the Ld. CIT(Appeals)/NFAC, it was explained by the assessee that it is a charitable trust and the primary object is to provide education through Hindi Medium School for under privileged children. The said charitable trust is located at Mahasamund which is small town where the staff are not conversant with the usage of Income Tax portal as well as emails. This is the reason for which the delay of 6 days occurred in filing the appeal before the Ld. CIT(Appeals)/NFAC. That as evident from Para 4 of the order of the Ld. CIT(Appeals)/NFAC, it had dismissed the appeal in limine on the ground of delay itself by holding that the statement of the assessee is not backed by any cogent tenable evidence and are mere assertions. 3. That in so far the facts of the case are concerned, the penalty has been levied as per order u/s.272A(2)(e) of the Income Tax Act, 1961 (for short ‘the Act’) vide order dated 16.03.2022 for the reason that the 3 Shishu Kalyan Shikkha Samiti Vs. ITO, Exemption, Raipur ITA No. 164/RPR/2025 assessee was found in default for not filing return of income on or before the due date as required u/s.139(4C) of the Act. Also, the assessee could not satisfactorily explain as to why the penalty u/s.272A(2)(e) of the Act may not be imposed in its case. 4. Having considered the entire factual matrix and submissions of the parties herein, we are of the considered view that first of all there is meagre delay of 6 days which has been explained by the assessee before the Ld. CIT(Appeals)/NFAC. The Ld. CIT(Appeals)/NFAC had blatantly and summarily dismissed the appeal while not condoning the delay in limine without going into the merits of the case and by stating that no evidence were filed by the assessee in support of its contention but the fact of the matter remains that the Ld. CIT(Appeals)/NFAC also while not condoning the said delay of 6 days has not adhered to mandate of Section 250(4) and (6) of the Act and thereby, has not conducted any further inquiry while arriving at its decision. Taking guidance from the judgment of the Hon’ble Supreme Court in the cases of Vidya Shankar Jaiswal Vs. ITO, Ward-2, Ambikapur, Civil Appeal Nos……………../2025 [Special Leave Petition (Civil) Nos. 26310-26311/2024, dated 31.01.2025 and Inder Singh Vs. the State of Madhya Pradesh, Civil Appeal No…………/2025, Special Leave Petition (Civil) No.6145 of 2024, dated 21st March, 2025, wherein it has been held that a justice oriented and liberal approach ought 4 Shishu Kalyan Shikkha Samiti Vs. ITO, Exemption, Raipur ITA No. 164/RPR/2025 to be adopted while considering the aspect of condoning the delay involved in filing of the appeal, we condone the delay of 6 days in filing of the appeal before the Ld. CIT(Appeals)/NFAC and remand the matter back to its file for denovo adjudication on merits. 5. That while dealing with the issue of penalty u/s.272A(2)(e) of the Act, the Ld. CIT(Appeals)/NFAC may look into that as claimed by the assessee since they are having exemption u/s. 10(23C)(iiiad) of the Act, therefore, they are not supposed to file return of income, whether this claim is tenable as per law. That as per record, the assessee had put the blame on the department for issuing notice after 8 years rather than explaining the reasonable cause that why such penalty should not be levied on the assessee. Therefore, the assessee shall also explain as to why the said penalty should not be levied with reasons and evidences before the Ld. CIT(Appeals)/NFAC. Needless to say, the Ld. CIT(Appeals)/NFAC shall follow the principles of natural justice while adjudicating the matter. 6. As per above terms, the grounds of appeal raised by the assessee stands allowed for statistical purposes. 5 Shishu Kalyan Shikkha Samiti Vs. ITO, Exemption, Raipur ITA No. 164/RPR/2025 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 7th May, 2025. Sd/- Sd/- ARUN KHODPIA PARTHA SARATHI CHAUDHURY (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) रायपुर/ RAIPUR ; Ǒदनांक / Dated : 7th May, 2025. ***SB, Sr. PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ /The Appellant. 2. Ĥ×यथȸ /The Respondent. 3. The CIT(Appeals)-1, Raipur (C.G.) 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, रायपुर बɅच, रायपुर / DR, ITAT, Raipur Bench, Raipur. 5. गाड[ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलȣय अͬधकरण, रायपुर / ITAT, Raipur. "