THE CONGREGATION OF BROTHERS OF ST.MICHAEL,COIMBATORE V. ACIT, EXEMPTIONS, COIMBATORE

ITA 1122/CHNY/2025

AI Insights

The case involves The Congregation of the Brothers of St. Michel, a charitable trust, appealing against the decision of the Commissioner of Income Tax (Appeals), which upheld the disallowance of capital expenditure by the Assistant Commissioner of Income Tax (Exemptions), Coimbatore. The disallowance was initially due to the non-filing of Form 10B (Audit Report) within the stipulated time. The assessee argued that the form was indeed filed on time, specifically on 12.10.2023, and provided evidence of the same. The Tribunal, after reviewing the submissions and the evidence provided, directed the Assessing Officer to verify the claim and adjust the assessment accordingly if the claim was found to be true.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706062 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: VIJAY NARAYANAN; C.A
• Keywords: Revenue expenditure; Capital expenditure; Charitable institution
• Section: 12A; 10B

Judgement Text

" आयकर अपीलीय अधिकरण, ’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI माननीय श्री मनु क ुमार धिरर ,न्याधयक सदस्य एवं माननीय श्री अमिताभ शुक्ला, लेखा सदस्य क े सिक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1122/Chny/2025 Assessment Years: 2023-24 The Congregation of the brothers of St.Michel, P.B.No.6 Bishop House, Big Bazaar Street, Coimbatore, Tamil Nadu-641 001. [PAN: AAATT3652K] Assistant Commissioner of Income Tax (Exemptions), Coimbatore (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.Vijay Narayanan, C.A, प्रत्यर्थी की ओर से /Revenue by : Ms.Anitha, Addl.CIT सुनवाई की तारीख/Date of Hearing : 18.06.2025 घोषणा की तारीख /Date of Pronouncement : 30.06.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), ADDL/JCIT [CIT(A)-1 Mumbai dated 25.02.2025. The assessment was framed by the CPC, AO for the assessment year 2023-24 u/s.143(1) of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 05.12.2024. 2. Brief facts of the case are that the assessee is a charitable trust registered u/s 12A of the Act. During the AY 2023-24, the assessee ITA No.1122 /Chny/2025 Page - 2 - of 3 had a gross income of Rs.3,70,50,099/- and had applied Rs.94,16,815/- towards revenue expenditure and Rs.2,76,33,284/- restricting the total application towards charitable activities to Rs.3,70,50,099/-. However, in the intimation u/s 143(1) dated 05.12.2024, the AO, CPC has disallowed capital expenditure of Rs.2,76,33,284/- for the reason that the assessee has not filed Form 10B (Audit Report). On further appeal to CIT(A), the ld. CIT(A) upheld the order of the AO, CPC. Aggrieved, assessee is in appeal before us. 3. Before us, ld. AR submitted that the Form 10B has been filed on 12.10.2023 within the due date of 31.10.2023. He also referred the copy of the Form 10B. 4. Per Contra, the ld. DR, Ms. Anitha, Addl. CIT submitted that in the light of the submissions of the ld.AR, the matter may be verified by the AO. 5. We have gone through the orders of the lower authorities and submission addressed by the parties. We have also perused the copy of the Form 10B filed on 12.10.2023 vide acknowledgment Number:403951980121023. However, we direct the AO to verify the ITA No.1122 /Chny/2025 Page - 3 - of 3 contentions of the assessee that the Form 10B has been filed on 12.10.2023 vide acknowledgment Number:403951980121023. If the contentiona of the assessee is found true then AO is directed to allow the capital expenditure of Rs.2,76,33,284/- as an application of funds towards charitable activities. 6. In the result, appeal filed by the assessee is allowed in terms above order. Order pronounced in the open court on 30th day of June, 2025 Sd/- Sd/- (अमिताभ शुक्ला) ( िनु क ुिार गिरर) ( Amitabh Shukla ) ( Manu Kumar Giri) लेखा सदस्य / Accountant Member न्याययक सदस्य/ Judicial Member चेन्नई/Chennai, धदनांक/Dated: 30th , June-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "