ST. ANN'S PUBLIC SCHOOL,CHERTHALA V. ITO,EXEMPTION WARD, ALAPPUZHA

ITA 849/COCH/2024

AI Insights

The case involves St. Ann's Public School, a trust providing educational services, which did not initially file a return of income for the Assessment Year 2015-16. The Income Tax Officer (AO) issued a notice under section 148 of the Income Tax Act, 1961, upon suspecting income escape due to cash deposits in the school's bank account. The AO later assessed the income at Rs. 37,64,086, adding Rs. 36,53,000 from these deposits as unexplained money. The school appealed this assessment, but the CIT(A) dismissed the appeal due to a 5-day delay in filing, which the school attributed to the unavailability of their Chartered Accountant and the Easter season. The Tribunal found the CIT(A)'s refusal to condone the delay without sufficient reasoning to be inappropriate and thus remanded the case for a decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23444 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: C.J. ROMID
• Section: 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 849/Coch/2024 Assessment Year: 2015-16 St. Ann's Public School .......... Appellant Muttom, Cherthala 688524 [PAN: AALAS0476N] vs. The Income Tax Officer .......... Respondent Exemption Ward, Alappuzha Appellant by: Shri C.J. Romid Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 05.02.2025 Date of Pronouncement: 10.02.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 05.08.2024 for Assessment Year (AY) 2015-16. 2. Brief facts of the case are that the appellant is a trust rendering educational services. The appellant had not filed the return of income for AY 2015-16. However, based on the information that the appellant made cash deposits in the SB Account, the Income Tax Officer, Exemption (hereinafter called \"the AO\") formed an opinion the income escaped assessment to tax. Accordingly, a notice u/s. 148 of the Income Tax Act, 1961 (the Act) was issued on 07.04.2022. In 2 ITA No. 849/Coch/2024 St. Ann's Public School response to the notice the appellant filed return of income on 06.01.2024. Against the said return of income, the assessment was completed by the AO at total income of Rs. 37,64,086/- by making addition of cash deposits in the bank of Rs. 36,53,000/- as explained money. 3. Being aggrieved, an appeal was filed before the CIT(A) with a delay of 5 days. The CIT(A) dismissed the appeal in limine without condoning the delay of 5 days. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. I heard the rival contentions of both the parties and perused the material available on record. The only issue that arise for my consideration in the present appeal is whether the CIT(A) is justified in refusing to condone the delay of 5 days in filing the appeal before him. The appellant had offered an explanation that the delay had occurred as the Chartered Accountant of the appellant was out of station for two weeks. The appellant was busy with Easter season. However, the CIT(A) refused to condone the delay. Accordingly, dismissed the appeal in limine. I carefully perused the order passed by the learned CIT(A) and find that the CIT(A) has not given any cogent reason as to how the explanation given by the appellant trust does not constitute sufficient cause. In the absence of any material in contrary, the CIT(A) ought to have condone the delay and decided 3 ITA No. 849/Coch/2024 St. Ann's Public School the issues in the appeal on merits. I, therefore, remand the matter back to the CIT(A) with a direction to condone the delay of 5 days and decide the issues in appeal, in accordance with law after affording reasonable opportunity of hearing to the appellant. 6. In the result, appeal filed by the assessee stands allowed for statistical purposes. Order pronounced in the open court on 10th February, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 10th February, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "