VINAYAGA EDUCATIONAL TRUST,NAMAKKAL V. INCOME TAX OFFICER, EXEMPTION WARD, SALEM, SALEM

ITA 3007/CHNY/2024

AI Insights

The case involves Vinayaga Educational Trust appealing against the order of the Learned Commissioner of Income Tax (Appeals) for the assessment year 2022-23. The primary contention was the non-adjudication of the assessee's plea to tax net receipts instead of gross receipts, which was inadvertently omitted by the CIT(A). The Tribunal noted a precedent from the Madras High Court supporting the assessee's position and directed a re-evaluation of the appeal by the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312855 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2022-2023
• Other Referred Cases: ITA 2169-70 / Chny 2024 Dt. 13/12/2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMANTHA MULLAMUDI
• Assessee Lawyers: V.MEENAKSHI SUNDAR; C.A
• Keywords: Set aside; Opportunity of being heard; Competent authority; Benefit of exemption
• Section: 119(2)(b)

Judgement Text

" आयकर अपीलीय अधिकरण, ‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ 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.3007/Chny/2024 Assessment Years: 2022-23 Vinayaga Educational Trust, No.1, Vinayaga Nagar, Jedarpalayam, Namakkal, Tamil Nadu-637 213. [PAN: AABTV5859K] Income Tax Officer, Exemption Ward, Salem (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri.V.Meenakshi Sundar, C.A प्रत्यर्थी की ओर से /Revenue by : Smt.Samantha Mullamudi, Addl.CIT सुनवाई की तारीख/Date of Hearing : 26.03.2025 घोषणा की तारीख /Date of Pronouncement : 30.04.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / APL / S / 250 / 2024-25 / 1069503082(1) dated 07.10.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), for the assessment years 2022-23. 2.0 The only issue challenged by the assessee through its grounds of appeal numbers 1 to 3 is regarding the non-adjudication of its alternate plea by the Ld. First Appellate Authority. The Ld. Counsel for the assessee submitted that the CPC had denied it benefit of exemption u/s ITA No.3007/Chny/2025 Page - 2 - of 3 11 & 12 of the act as form-10B was not filed. It was stated that a request for condonation was pending before the CCIT. It is the case of the assessee that the Ld.CIT(A) has not adjudicated its above grounds of appeal wherein request was made to alternatively tax the net receipt and not the gross receipts. The Ld Council for the assessee drew our attention to the order of this tribunal in ITA 2169-70 / Chny 2024 Dt. 13/12/2024 wherein placing reliance upon decision of Hon’ble Madras High Court relief was accorded to the assessee and net receipts were directed to be taxed. 3.0 The Ld. DR relied upon the order of lower authorities. 4.0 We have heard rival submissions in the light of material available on records. We have noted that in the appellate order on page 2, the Ld. CIT(A) has reproduced assessee’s grounds. Through ground of appeal no.2 the assessee had contested assessment of gross receipts. The Ld. CIT(A) as evident from para 5.3 of his order merely emphasized upon delayed submission of Form-10B and the powers of competent authority under section 119(2)(b) to condone it. The ground of appeal no.2 was inadvertently omitted to be adjudicated by the Ld. CIT(A). Accordingly, we set aside the order the Ld. CIT(A) and direct him to adjudicate de novo all the grounds of appeal contested by the assessee before him by giving due opportunity of being heard and through a speaking order. The assessee shall comply with all statutory notices ITA No.3007/Chny/2025 Page - 3 - of 3 issued by the Ld. CIT(A) and any non-compliance shall be adversely viewed. Accordingly, all the grounds of appeal raised by the assessee are allowed for statistical purposes. 5.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 30th , April-2025 at Chennai. Sd/- (मनु क ुमार धिरर) (MANU KUMAR GIRI) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 30th , April-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Salem 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "