STEPPING STONE EDUCATIONAL SOCIETY,GORAKHPUR V. ADDL/JOINT/DEPUTY/ASSTT. CIT/ITO, NEAC, DELHI

ITA 124/VNS/2024

AI Insights

The case involves Stepping Stone Educational Society, which appealed against the order of the National Faceless Assessment Centre (NFAC), Delhi, denying them exemption under section 11 of the Income Tax Act for the Assessment Year 2018-19. The AO had denied the exemption due to late filing of the income tax return and the audit report. The CIT(A) upheld this decision as the assessee failed to respond to notices. The Tribunal set aside the matter to the AO to verify the due date of filing and the status of the condonation of delay petition.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473601 (ITAT-VARANASI)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Next Hearing Date: 12-09-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 03-07-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA MEENA
• Assessee Lawyers: ASHISH BANSAL
• Keywords: Condonation of delay; Set aside
• Section: 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, VARANASI BEFORE: SHRI B.R. BASKARAN, ACCOUNTANT MEMBER & SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA No.124/VNS/2024 (Assessment Year :2018-19) Stepping Stone Educational Society Netaji Subhash Road Surajkund Gorakhpur-273015 Vs. Additional/Joint/Deputy/ Assistant Commissioner Of Income Tax / Income Tax Officer National e-Assessment Centre, Delhi PAN/GIR No.AGGTS5273D (Appellant) .. (Respondent) Assessee by Shri Ashish Bansal, Advocate Shri Pankaj Shukla, Advocate Revenue by Smt. Kavita Meena, Sr.DR Date of Hearing 12/09/2024 Date of Pronouncement 29/11/2024 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 07/05/2024 passed by NFAC, Delhi for the quantum of assessment passed u/s.143(3) for the A.Y.2018-19. 2. In the grounds of appeal assessee has challenged denying the exemption u/s.11 and assessing the income at Rs.3,11,22,290/- made up as under:- Rs. a) Repayment of term loan 98,60,147 ITA No.124/VNS/2024 Stepping Stone Educational Society 2 b) Cash credit due 77,94,395 c) Misc. fixed assets 81,26,995 d) Purchase of bus/car 13,40,758 e) Expenditure on school project 40,00,000 3,11,22,285 (say Rs.3,11,22,290) 3. The assessee is a society which has been granted registration u/s.12A by the Pr. CIT Varanasi vide certificate dated 10/12/2021. The ld. AO during the course of assessment proceedings noted that assessee has e-filed return of income for A.Y.2018-19 on 20/03/2019 which according to him was after due date of furnishing of income for A.Y.2018-19. Further, assessee has also furnished audit report belatedly alongwith return of income for the year under consideration. Since assessee had claimed the capital expenses amounting to Rs.3,11,22,285/- and assessee did not file audit report in Form 10B on web portal within time, he therefore, denied the exemption u/s.11. One of the contention raised by the assessee before the AO was that it has filed a petition for condonation of delay before the Ld.CIT however, AO observed that nothing has been brought on record that such delay has been condoned. Accordingly, AO computed income at Rs.3,11,22,190/- denying the exemption u/s.11. 4. The ld. CIT(A) too has confirmed the addition as assessee could not reply to the notice sent through e-mail. ITA No.124/VNS/2024 Stepping Stone Educational Society 3 5. Before us it has been stated that assessee is engaged in imparting education to the children for which it was granted registration u/s.12A. Assessee had filed Form 10B alongwith return of income. It has been stated that due date of filing of return was extended up to 31/03/2019 by the CBDT for that year, whereas assessee has filed return of income on 23/02/2019 and the audit report was uploaded on the same date i.e.,on 23/02/2019. It was further submitted that for A.Y.2016-17and 2017-18 there was a delay in filing of the return and also audit report and in those years Ld. CIT (exemption) has condoned the delay in view of the CBDT Circular No.10/2019. Further,assessee has also filed condonation of delay for this year vide letter dated 02/04/2021, the fate of which is not available. 6. In view of the aforesaid facts and circumstances, this matter is set aside to the file of the ld. AO to examine, whether the due date of filing of return for A.Y.2018-19 was extended upto 31/03/2019 and if that is so, then filing of audit report on 20/03/2019 was well in time and consequently exemption u/s. 11 has to be given. Else, in case the date was not extended then whether the CIT has condoned the delay or not? If not so then assessee may approach Ld. CIT(E) to decide its petition at the earliest. In any case, if the delay is condoned or return of income was filed within the extended time, then exemption u/s.11 should be granted. 7. In the result, appeal of the assessee is allowed for statistical purposes. ITA No.124/VNS/2024 Stepping Stone Educational Society 4 Order pronounced on 29/11/2024. Sd/- (B.R. BASKARAN) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Varanasi; Dated 29/11/2024 KARUNA, sr.ps Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Varanasi 1. The Appellant 2. The Respondent. 3. The CIT(A), Varanasi. 4. CIT 5. DR, ITAT, Varanasi 6. Guard file. //True Copy// "