V.C. MEDICAL, EDUCATIONAL AND CHARITABLE TRUST,PALANI V. ITO, WARD-1, DINDIGUL

ITA 1114/CHNY/2025

AI Insights

The case involves V.C. Medical, Educational and Charitable Trust, which appealed against the order of the Addl/JCIT(A)-3, Mumbai, for the assessment year 2021-22. The primary issue was the denial of exemption under section 11 of the Income Tax Act, 1961, due to non-filing of Form 10B. The assessee argued that the delay in filing the form was condoned by the CIT(E), Chennai, based on a CBDT circular. The Tribunal found merit in the assessee's arguments and remanded the case to the Assessing Officer to verify the exemption claim.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711859 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.ANITA
• Assessee Lawyers: T.S. LAKSHMI VENKATARAMAN; F
• Keywords: Condonation of delay; Charitable institution
• Section: 154; 11; 119(2)(b); 10B

Judgement Text

"आयकर अपीलीय अिधकरण, ’सी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. No.1114/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2021-22 V.C. Medical, Educational and Charitable Trust, 72-B, Dindugal Road, Palani 624 601. [PAN:AAATV4282H] Vs. The Income Tax Officer, Ward 1, Dindigul. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri T.S. Lakshmi Venkataraman, F.C.A. ŮȑथŎ की ओर से/Respondent by : Ms. R. Anita, Addl. CIT सुनवाई की तारीख/ Date of hearing : 03.07.2025 घोषणा की तारीख /Date of Pronouncement : 25.07.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 10.01.2025 passed by the Addl/JCIT(A)-3, Mumbai for the assessment year 2021-22. 2. We find that this appeal is filed with a delay of 21 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really Printed from counselvise.com I.T.A. No.1114/Chny/25 2 prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication. 3. The assessee raised 4 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the addition made by the Assessing Officer in denying exemption under section 11 of the Income Tax Act, 1961 [“Act” in short] for non-filing of Form 10B in the facts and circumstances of the case. 4. The ld. AR Shri T.S. Lakshmi Venkataraman, F.C.A. submits that the CPC, Bangalore denied the exemption under section 11 of the Act by stating that the objectives of the assessee includes activities of general public utility involved in business activity. The assessee filed rectification application under section 154 of the Act. However, without considering the same, the exemption under section 11 of the Act was denied. The ld. AR submits that the ld. CIT(A) confirmed the same. The ld. AR drew our attention to the written submissions and submits that the delay condonation petition dated 16.11.2024 was allowed by the ld. CIT(E) condoning the delay in filing Form 10B under section 119(2)(b) of the Act and referred to enclosure 1. He submits that the assessee is entitled for Printed from counselvise.com I.T.A. No.1114/Chny/25 3 exemption under section 11 of the Act and prayed to remand the matter to the file of the Assessing Officer. 5. The ld. DR Ms. R. Anita, Addl. CIT reported no objection. 6. We find the order dated 25.06.2025 passed by the ld. CIT(E), Chennai in condoning the delay by placing reliance of Circular issued by CBDT vide para 4.1 of his order. Therefore, we find force in the arguments of the ld. AR that the assessee is entitled to claim exemption under section 11 of the Act in view of condonation of delay in filing Form 10B by order of the ld. CIT(E) referred herein above. Thus, it is appropriate to remand the matter to the file of the Assessing officer for verification of the claim of the exemption under section 11 of the Act. Thus, the grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 25th July, 2025 at Chennai. Sd/- Sd/- (JAGADISH) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 25.07.2025 Printed from counselvise.com I.T.A. No.1114/Chny/25 4 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "