THE SOUTH INDIANS ORGANISATION (REGD),MUMBAI V. COMISSIONER OF INCOMETAX (EXEMPTION) WARD 2(4), MUMBAI

ITA 6054/MUM/2024

AI Insights

The case involves The South Indians Organisation, a charitable trust, appealing against a revision order passed by the Commissioner of Income Tax (Exemptions) under section 263 of the Income Tax Act, 1961. The revision order was issued on 14-03-2022, and the assessee filed the appeal on 22-11-2024, which was beyond the allowable time frame. The tribunal found that the assessee's reasons for the delay, citing a misunderstanding of the need to appeal the section 263 order directly, were insufficient. Consequently, the tribunal dismissed the appeal in limine, without considering the merits of the case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471400 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ALOK KUMA R
• Assessee Lawyers: M. SUBRAMANIAN
• Keywords: Set aside; Bonafide belief; Period of limitation; Principle of natural justice; Charitable institution; Time period of passing order
• Section: 143(3); 263

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B”, MUMBAI BEFORE JUSTICE (RETD.) SHRI C.V. BHADANG, PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA No. 6054/Mum/2024 Assessment Year : 2017-18 The South Indians Organisation (Regd), Vani Vidyalaya, Jawaharlal Nehru Road, Mulund (West), Mumbai-400080 PAN : AAATT3708L vs. The Commissioner of Income Tax(Exemptions), Ward-2(4), Mumbai-400026 (Appellant) (Respondent) For Assessee : Shri M. Subramanian For Revenue : Shri Alok Kumar, CIT-DR Date of Hearing : 11-03-2025 Date of Pronouncement : 13-03-2025 O R D E R PER B.R. BASKARAN, A.M : The assessee has filed this appeal challenging the revision order dated14-03-2022 passed by the Ld. Commissioner of Income Tax (Exemptions)-Mumbai [‘Ld.CIT(E)’] u/s. 263 of the Income Tax Act, 1961 (‘the Act’). 2 ITA No. 6054/Mum/2024 2. At the outset, we notice that the present appeal is barred by limitation by 894 days. The assessee filed an affidavit explaining the reasons for the delay as under:- AFFIDAVIT I, P.V. Jayaraman, Hon. Secretry of The South Indians’ Organization residing at 601, Shreeram Apartments, 90 Ft Road, Mulund East, Mumbai 400081, solemnly declare that: 1. I say, that the assessee is a charitable trust regularly assessed to tax under PAN AAATT3708L. 2. I say, that I was under a bonafide belief that the assessee has to file an appeal only against A.O.’s order giving effect to the CIT’s 263 order and there is no need to challenge the order passed u/s. 263 as the CIT has set aside the assessment order for the limited purpose carrying out verification and inquiry of certain claim made and that too duly following the principles of natural justice. 3. I say that my C.A. also endorsed the view that I need file appeal only against the order giving effect to the C.I.T.’s order and not against C.I.T.’s 263 order. 4. I state that the delay was not intentional or deliberate and therefore it is my earnest request that the same may please be condoned. Whatever stated by me above, is true and correct to the best of my knowledge and belief. Solemnly affirmed and declared on oath at Mumbai, on this 5th day of December, 2024. For The South Indians’ Organisation P V JAYARAMAN Hon Secretary DEPONENT 3. We heard the parties on this preliminary issue and perused the record. We notice that the revision order passed by the Ld.CIT(E) came to 3 ITA No. 6054/Mum/2024 be served on the assessee on 14-03-2022. However, the assessee has filed appeal only on 22-11-2024. It was submitted by the Ld.AR that CA of the assessee did not advise the assessee to file the appeal against the revision order. In the meantime, the AO passed the order u/s. 143(3) r.w.s. 263 of the Acton 24-12-2022 in order to give effect to the above said revision order, wherein the AO has made certain additions. The Ld A.R submitted that the assessee had filed appeal against the assessment order. 4. We notice that the AO had passed the order on 24-12-2022 and the assessee has filed the present appeal challenging the revision order after expiry of almost two years. The assessee should have taken advice of the tax counsel in December, 2022 and it is not discernible as to why the assessee should wait for almost two years to file the present appeal. In any case, the assessee has not explained proper reasons for the delay. It is well settled proposition of law that the assessee should give proper reasons for the delay in filing appeal beyond the limitation period. In the instant case, we are of the view that the assessee did not explain proper reasons for filing appeal in November, 2024, even though the assessment order u/s 143(3) r.w.s 263 came to be passed in December, 2022 itself. Accordingly, we decline to condone the delay in filing the appeal before the Tribunal. Accordingly, we dismiss the appeal in limine. 5. In the result, the appeal filed by the assessee is dismissed as un- admitted. Order pronounced in the open court on 13-03-2025 Sd/- Sd/- (JUSTICE (RETD.) C.V. BHADANG) PRESIDENT (B.R. BASKARAN) ACCOUNTANT MEMBER Mumbai, Date: 13-03-2025 TNMM 4 ITA No. 6054/Mum/2024 Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, ITAT, Mumbai 5) Guard file By Order Dy./Asst. Registrar I.T.A.T, Mumbai "