TIRUPUR VISION ROTARY TRUST,TIRUPUR V. ACIT, EXEMPTIONS, COIMBATORE

ITA 1102/CHNY/2025

AI Insights

The case involves the Tirupur Vision Rotary Trust, which appealed against the order of the Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Kolkata. The appeal arose from an intimation under section 143(1) of the Income-tax Act, 1961, issued by the Centralized Processing Center, Bengaluru, which disallowed the Trust's claim of corpus donations and denied exemptions under sections 11 & 12 of the Act due to the non-filing of the audit report in Form 10AB within the prescribed time. The Tribunal considered additional grounds regarding the adjustment of investments claimed under section 11(5) without providing an opportunity to the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777353 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2022-2023
• Appeal Filed On: 21-04-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: S. SRIDHAR; ERODE
• Keywords: Condonation of delay; Set aside
• Section: 147; 11; 12; 119(2)(b); 10B

Judgement Text

" आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग र, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम' BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1102/Chny/2025 िनधा 7रण वष7 /Assessment Year: 2022-23 Tirupur Vision Rotary Trust, SF 147 M. Pudhupalayam, Dhrapuram Road, Muthampalayam, Tirupur – 641 665. PAN: AACTT 7874M Vs. The Asst. Commissioner of Income Tax (Exemptions), Coimbatore. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथD की ओर से/ Appellant by : Shri S. Sridhar, Advocate(Erode) FGथD की ओर से /Respondent by : Shri R. Anitha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 25.09.2025 घोषणा की तारीख /Date of Pronouncement : 29.09.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2022-23 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Kolkata [hereinafter “Addl. CIT(A)”] dated 25.03.2025 vide intimation u/s. 143(1) of the Income-tax Act, 1961 (hereinafter “the Act”) issued by Centralized Processing Center, Bengaluru [AO] dated 31.03.2023. Printed from counselvise.com ITA No.1102/Chny/2025 Tirupur Vision Rotary Trust :- 2 -: 2. The assessee is a Trust and filed its return of income at Nil after claiming exemption of Rs.12,84,457/-. In the intimation issued u/s. 143(1) of the Act, the CPC disallowed the assessee’s claim of corpus donations of Rs. 29,57,595/-, and did not allow exemption u/s. 11 & 12 of the Act , on the ground that the assessee had not filed the audit report in Form 10AB within the prescribed time. Aggrieved, the assessee preferred an appeal before the Ld. Addl. CIT(A) who dismissing the appeal by confirming the adjustments. 3. The learned Authorized Representative (AR) of the assessee submitted additional ground that the CPC has made adjustment of Rs.29,57,595/- in respect investment claimed u/s 11(5) without providing any opportunity and therefore adjustment needs to be set aside. The Ld. AR in respect of denial exemption u/s 11 and 12 for not filling audit report in time has submitted that assessee has filed a petition u/s. 119(2)(b) of the Act before the Ld. CCIT, Coimbatore, seeking condonation of delay in filing the return of income, and the said petition is still pending. The Ld. A.R thus prayed that the order of the Ld. Addl. CIT(A) be set aside and the matter remitted to be decided for providing proper opportunity and after considering the outcome of the condonation petition filed before the CCIT, Coimbatore. Printed from counselvise.com ITA No.1102/Chny/2025 Tirupur Vision Rotary Trust :- 3 -: 4. On the other hand, the Ld. Departmental Representative (DR) relied upon the orders of the lower authorities. 5. We have heard the rival submissions and perused the material available on record. The CPC has disallowed the assessee’s claim of exemption towards corpus donations without providing adequate opportunity to the assessee and as regards to denial of exemption under sections 11 & 12 of the Act for the reason that audit report in Form 10B has not been filed within the prescribed date, the Ld. AR has brought to our notice that the assessee has filed a petition for condonation of delay in filing the return of income u/s. 119(2)(b) of the Act, which is presently pending before the learned CCIT, Coimbatore. Accordingly, we set aside the impugned orders and restore the matter to the file of the A.O, with a direction to decide the assessee’s claim afresh after providing proper opportunity to the assessee and awaiting the decision of the Ld. CCIT, Coimbatore, on the condonation petition. Thus, the appeal filed by the assessee is allowed for statistical purposes only. Printed from counselvise.com ITA No.1102/Chny/2025 Tirupur Vision Rotary Trust :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 29th day of September, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार िग र) (Manu Kumar Giri) \u0011ाियक सद / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 29th September, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "