SIMON INDIA LTD STAFF SUPERANNUATION FUND,DELHI V. AO RANGE-47,CIRCLE EXEMPT-1(1), DELHI

ITA 2706/DEL/2025

AI Insights

The case involves Simon India Ltd. Staff Superannuation Fund, a trust registered under the Income Tax Act, 1961, which provides gratuity benefits to employees of Simon India Ltd. The trust sought exemption under section 10(25)(iv) of the Act for the Assessment Year 2018-19 but inadvertently claimed a deduction under section 11 instead. The Centralized Processing Centre (CPC) rejected this claim, leading the trust to file a rectification petition under section 154, which was also rejected. The trust's subsequent appeal to the CIT(A) was dismissed ex-parte due to non-appearance. The Tribunal found that despite multiple notices, the trust did not appear before the CIT(A), leading to the dismissal of their appeal. However, considering the circumstances, the Tribunal decided to set aside the CIT(A)'s order and remand the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708329 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Keywords: Set aside; Revised return; Wrong claim
• Section: 154; 11

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.2706/िदʟी/2025 (िन.व. 2018-19) ITA No.2706/DEL/2025 (A.Y.2018-19) Simon India Ltd. Staff Staff Superannuation Fund, A-36, Mehtab House, Mathura Road, Mohan CO Operative Industrial Estate, New Delhi 110044 PAN: AANTS-1979-D ...... अपीलाथᱮ/Appellant बनाम Vs. Assessing Officer No. 1, Range-47, Circle Exempt 1(1), Delhi 110052 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : None ŮितवादीȪारा/Respondent by : Shri Manoj Kumar, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 16/07/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 16/07/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against an ex-parte order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 17.12.2024, for Assessment Year 2018-19. 2. The appeal is time barred by 55 days. The assessee has filed an application supported by an affidavit citing reasons causing delay in filing of appeal. After perusal of the same, I am satisfied that delay in filing of appeal is not intentional, the delay has been caused for the reasons stated in application which appears to 2 ITA No.2706/Del/2025 (AY 2018-19) be bonafide. Thus, delay of 55 days in filing of appeal is condoned and appeal is admitted for decision on merits. 3. The brief facts of the case as emanating from records are: The assessee is a Trust registered under Income Tax Act, 1961(hereinafter referred to as ‘the Act’). The main object of the trust is to provide gratuity benefits to the employees of Simon India Ltd. in accordance with the Trust Deed. Purportedly, the assessee is eligible for exemption u/s.10(25)(iv) of the Act. The assessee filed its return of income for AY 2018-19 declaring total income of Rs.12,31,715/-. Inadvertently, the assessee claimed deduction u/s. 11 of the Act instead of exemption u/s. 10(25)(iv) of the Act. The assessee’s claim was rejected by Centralized Processing Centre (CPC). Thereafter, the assessee filed rectification petition u/s. 154 of the Act. However, that to was rejected by the CPC. The assessee carried the issue in appeal before the CIT(A). Since, despite notices none appeared on behalf of the assessee before the First Appellate Authority, the CIT(A) in an ex-parte proceedings dismissed appeal of the assessee. 4. Shri Manoj Kumar, representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. The ld. DR submitted that the assessee has itself admitted that wrong claim was made in the return of income, the CPC has rejected the same. The assessee thereafter filed rectification petition u/s. 154 of the Act claiming exemption u/s. 10(25)(iv) of the Act, the same was rightly rejected by the CPC as the said claim have either have been made in return of income or revised return of income. Instead, the assessee filed application for rectification u/s. 154 of the Act. In First Appellate proceedings 3 ITA No.2706/Del/2025 (AY 2018-19) none appeared to represent the assessee despite service of several notices. Therefore, no further opportunity should be allowed to the assessee now. 5. Submissions made by ld. DR heard and written submissions filed on behalf of the assessee considered. A perusal of the impugned order shows that the CIT(A) had issued as many as 10 notices to the assessee, no reply or any submissions were furnished by the assessee before the CIT(A). Considering entire facts of the case and in the interest of justice, I deem it appropriate to restore this appeal back to the CIT(A) for denovo adjudication on merits after affording reasonable opportunity of making submissions to the assessee, in accordance with law. 6. The CIT(A) shall serve notice to the assessee on the email address provided in Form No. 35. If the assessee wishes to receive notice on any other email id, the same shall be provided to the CIT(A) within 45 days from the date of receipt of this order. 7. The assessee shall respond to the notice(s) served by the CIT(A), without fail. 8. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Wednesday the 16th day July, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 16.07.2025 4 ITA No.2706/Del/2025 (AY 2018-19) NV/- ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "