ST. THOMAS CHURCH,MUMBAI vs. INCOME TAX OFFICER (EXEMPTION) WARD 2(3), MUMBAI, MUMBAI
Income Tax Appellate Tribunal, Mumbai “E” Bench, Mumbai.
Before: Smt. Beena Pillai (JM) & Shri Omkareshwar Chidara (AM) St. Thomas Church 1, Church Road, Goregaon-E Mumbai-400 063. Vs. ITO(E), Ward 2(3) 6th Floor, MTNL Bldg, Peddar Road Mumbai-400 026. PAN : AAATT4878R
Per Omkareshwar Chidara (AM) :-
The appellant Trust has contested that the benefits under section 11
of the Income Tax Act were denied to them by CPC under section 143(1) of the Act due to the reason that the Trust filed Audit Report in Form 10BB with a delay of 23 days. The denial of benefits under section 11 of the Act resulted in the disallowance of accumulation benefit of 15% of income, surplus claimed as “Application of Income” and capital expenditure claimed as “Application of Income”. Apart from the above disallowances, an addition of Rs. 10,58,000/- was also made by the CPC as deemed income under section 11(3) of the Act, without even calling for explanation. The Ld. CIT(A) had confirmed all the additions without adjudicating on the main issue of whether such adjustments can be done under section 143(1) of the Act and that too without giving an opportunity to the appellant.
The Ld. AR of the appellant has pointed out before the ITAT that Ld. CIT(A) should have first adjudicated the issue of whether such adjustments are permissible under section 143(1) of the Act, as all the issues are St. Thomas Church
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debatable and on merits too, there are several decisions in favour of the appellant Trust. The Ld. AR of the appellant has filed a time line chart before
ITAT which is reproduced below :-
B. Details of Filing Audit Report in Form No. 10BB
1. Due Date of Filing Form No. 1OBB
30th September 2023
Extended Due Date of Filing Form No. 1OBB
31st November 2023
(as per circular no. 16/2023 dated 18/09/2023)
Date of Filing of Form No. 1OBB
(Delay of 29 days)
C. Details of Filing Return of Income (ITR 7)
4. Due Date of Filing Return of Income
31st October 2023
Extended Due Date of Filing Return of Income 30th November 2023 (as per circular no. 16/2023 dated 18/09/2023)
Date of Filing Return of Income.
30th November 2023
In similar circumstances, the Ld. AR had submitted that Hon'ble Coordinate Bench in appellant’s own case condoned small delay for A.Y. 2022-23 and remitted the issue back to Juri ictional AO with the following observations:-
Respectfully following the decisions of the coordinate benches cited hereinbefore, we hold that firstly the impugned adjustment could not have been made without providing the mandatory opportunity to the assessee u/s. 143(1) of the Act. Moreover on merits also, the assessee's case is covered by the numerous decisions of the coordinate benches some which have been cited hereinabove and therefore, respectfully following the same, we hereby restore the matter to the Juri ictional Assessing Officer for considering the Form 10B filed by the assessee and to decide the issue on merits after giving due opportunity to the assessee.
The Ld. DR relied on the order of Ld. CIT(A) and argued that the additions be upheld.
Heard both sides. In view of the fact that the Coordinate Bench has already taken a decision in the earlier year in appellant’s own case to remit the issue back to juri ictional AO (JAO) to adjudicate all these issues, for this year also, the issue is remitted back to JAO to do the St. Thomas Church
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same. The Ld. JAO is directed to give an opportunity to the appellant
Trust and pass the order afresh after taking into account all the submissions made by appellant Trust.
The appeal of appellant is allowed for statistical purposes.
Order pronounced in the open Court on 03/12/2025. (BEENA PILLAI)
ACCOUNTANT MEMBER
Copy of the Order forwarded to :
The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file.
BY ORDER,
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