THE PROPERTY ASSOCIATION OF BAPTIST CHURCHES PVT. LTD.,CHENNAI V. ITO, EXEMPTION WARD-3, CHENNAI

ITA 2356/CHNY/2024

AI Insights

The case involves two appeals by The Property Association of Baptist Churches Pvt. Ltd. against the orders of the Learned Commissioner of Income Tax, National Faceless Appeal Centre, Delhi, which denied exemption under section 11 of the Income-tax Act, 1961 for the Assessment Years 2016-17 and 2017-18. The primary issue was the late filing of Form 10B, required for claiming exemptions. The Tribunal noted the delay in filing the appeals and the condonation petitions submitted by the assessee. It was argued that the CIT(A) dismissed the appeals without waiting for the decision on the condonation of delay from CIT(E). The Tribunal, emphasizing the principles of natural justice, decided to provide another opportunity for the assessee to present its case before the CIT(A), subject to the payment of costs.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 39057 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G. SARATHA
• Assessee Lawyers: A. NIKITHA
• Keywords: Condonation of delay; Set aside; Principle of natural justice; Non compliance
• Section: 119; 11; 10B

Judgement Text

" आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी एबी टी. वक\u001e, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.2355 & 2356/Chny/2024 िनधा<रण वष< /Assessment Year: 2016-17 & 2017-18 The Property Association of Baptist Churches Pvt. Ltd., 903, Tower E2 Ekanta North Town, Stephension Road, Perambur, Chennai – 600 012. Vs. The Income Tax Officer (Exemptions), Ward-3, Chennai. [PAN: AABCT 2815J] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ\u001e की ओर से/ Appellant by : Ms. A. Nikitha, Advocate KLथ\u001e की ओर से /Respondent by : Mrs. G. Saratha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 21.11.2024 घोषणा की तारीख /Date of Pronouncement : 31 .01.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid two appeals filed by the assessee for Assessment Years (AYs) 2016-17 & 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] / CIT, Appeal, Addl/JCIT(A)-4, Bengaluru dated 14.03.2024 & 28.02.2024, respectively. ITA Nos.2355 & 2356/Chny/2024 :- 2 -: 2. There is a delay of 119 days for A.Y 2016-17 and 134 days for A.Y 2017-18 in filing the appeal by the assessee. The assessee has filed condonation petitions stating the reasons for delay in filing the appeals. We have considered the petitions of delay in filing the appeals and satisfied that there was sufficient cause for not filing the appeals within the prescribed time limit. Hence, the delay is condoned accordingly. 3. The only effective ground in this appeal of assessee is against the confirming the denial of exemption claimed u/s. 11 of the Income- tax Act, 1961 (hereinafter “the Act”) by CPC, Bengaluru on the ground that Form-10B was not filed within the due date prescribed. Aggrieved by this, the assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) passed ex-parte order dismissing assessee appeals as there was non-compliance by the assessee. 4. At the outset, The Ld. Authorized Representative (A.R) of the assessee has submitted that the assessee has filed petition before Ld. CIT(E) for condonation of delay in filling form 10B , therefore, Ld CIT(A) was not justified to dismiss appeal without waiting for Ld CIT(E) order. ITA Nos.2355 & 2356/Chny/2024 :- 3 -: 5. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. On perusal of orders of Ld. CIT(A), we find that the Ld. CIT(A) has dismissed the appeals for claim of exemptions u/s.11 of the Act for the reason that the assessee has not filed Form- 10B within the prescribed due date. The Ld. AR has submitted assessee has filed Form-10B for condonation of delay in filing the audit report before Ld. CIT(E) which is pending . We find that assessee has been non compliant before Ld CIT(A) .However ,keeping in view the principles of natural justice, We are of opinion , the assessee be provided with another opportunity of hearing to substantiate its cases before the Ld. CIT(A) subject to payment of costs of Rs.5,000/- each. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the Ld. CIT(A). Accordingly, we set aside the orders Ld. CIT(A) and remit the matters back to the file of Ld. CIT(A) for denovo adjudication after receipt of decision of Ld. ITA Nos.2355 & 2356/Chny/2024 :- 4 -: CIT(E) for condonation of delay. In view of the above, both the appeals filed by the assessee are allowed for statistical purposes only. 7. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced on 31st January, 2025. Sd/- Sd/- (एबी टी. वक\u001e) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 31st January, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. \t थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय \tितिनिध/DR 5. गाड\u0019 फाईल/GF "