SHREE SUNDER NAGAR JAIN SANGH ,MUMBAI vs. INCOME TAX OFFICER (EXEMPTION) WD 2(3), MUMBAI

Date of Hearing 01.10.2025 Date of Pronouncement 11.11.2025 आदेश / O R D E R PER PRABHASH SHANKAR [A.M.] :- The present appeal arising from the appellate order dated 06.03.2025 is filed by the assessee against the order passed by the Learned Commissioner of Income-tax, Appeal, Addl./JCIT(A) Panaji [hereinafter referred to as “CIT(A)”] pertaining to the intimation order passed u/s. 143(1) of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 30.11.2021 as passed by AO(CPC), Bengaluru for the Assessment Year [A.Y.] 2020-21.

A.Y. 2020-21 Shree Sunder Nagar Jain Sangh 2. The grounds of appeal are as under:-

1. The orders passed by the learned lower authorities are bad in law and bad in facts.

2. The learned lower authorities have grossly erred in upholding the validity of the Intimation issued u/s 143 (1) of the I.T. Act, 1961, even though no intimation, (notice) as provided by the, 1st & 2nd Proviso below Sec. 143 (1) of the I.T. Act, 1961, was issued.

3. The Intimation issued u/s 143 (1) of the I. T. Act, 1961, is ab-initio void, inasmuch as, impugned adjustment of Rs.25,79,098/- without issuing an intimation is contrary to the mandatory provisions of law.

4. The learned lower authorities have grossly erred in not considering the prevalent circumstances emerging out of Covid restrictions and have further erred in adding a sum of Rs. 25,79,098/- to the returned income.

5. The learned lower authorities have grossly erred in not considering, prior to making of impugned addition of Rs.25,79,098/- that the appellant was prevented by a reasonable and sufficient cause in filing return of income belatedly.

2. It is noticed that the instant appeal is delayed by 15 days. In this regard, the assessee has filed a condonation application alongwith affidavit of the trustee Sri Atul Parekh. It is submitted that the appellate order was uploaded on e-portal on 06.03.2025.However,due to lack of familiarity with e-communications modes and lack of computer with the trust,the matter somehow escaped the attention.It is submitted that the delay was unintentional and due to bonafide reasons. Considering the plea of the trustee,we condone the delay.

3. Ground no. 1 being general in nature does not require separate adjudication.

A.Y. 2020-21 Shree Sunder Nagar Jain Sangh 4. Ground no.2 and 3 are related to the issue relating to the addition of Rs.25,79,098/- made by CPC ,whichwas claimed as exempt income by the assessee in the return of income filed for the year under consideration. Facts in brief are that the assessee filed the return of income for the year under consideration declaring total income as Nil claiming exempt income amounting to Rs.25,79,098/- u/s 11/12/10(23C) (iv)/ 10(23C) (v)/ 10(23C)(vi)/ 10(23C)(via) of the Act. However, while processing the return,the Central Processing Center i.e. CPC did not consider the exemption and passed the intimation order u/s.143(1) of the Act raising tax liability of Rs.7,41,637/-. The said order was upheld by the ld.CIT(A) observing that any exemption could be claimed and allowed to the assessee only in the condition that the return of income for the relevant year in which such exemption is claimed has been filed within the ‘due date’ of filing of return of income u/s. 139(1) of the Act.Herethe return of income for the year under consideration was filed after due date of filing of return of income u/s.139(1) of Act on 27.03.2021. Further, for the year under consideration the ‘due date’for filing of return of income had been extended for multiple time and in spite of that the assessee utterly failed to file the return of income within the finally extended due date i.e. 15.02.2021.Considering these facts, he held that the AO/CPC had correctly passed the intimation order by A.Y. 2020-21 Shree Sunder Nagar Jain Sangh disallowing the exemption claimed and the intimation order passed had no infirmity and needed not to be interfered with. Accordingly,he upheld the disallowance.

specifically filed before the ld.CIT(A) wherein it claimed that in absence of any prior notice/show cause as per proviso to section 143(1),no adjustment is permissible.It appears that the ld.CIT(A) has not adjudicated on this ground at all.No factual verification of the records or A.Y. 2020

21. Shree Sunder Nagar Jain Sangh calling for a report from the AO in this regard is mentioned anywhere in the order. Therefore, both these ground nos.2 and 3 raised before us in this regard have not been adjudicated without any reasons though the very validity of the impugned order rests on it.

8.1 The assessee has made a detailed submission dated 27.03.2023 before the ld.CIT(A) which forms part of the appellate order from page-8 to 11 thereof in this regard before him.Apart from this aspect,it is also seen that on the written submission, the assessee had placed reliance on the decision of hon’ble Supreme Court in the case of Cognizance for Extension of Limitation in RE(2022) 441 ITR 722(SC).However,the appellate order is silent on its applicability or otherwise.It is also stated that several courts of law have consistently held that any return filed u/s 139(4) would also be treated to have been filed within the time. Reliance has been placed on the coordinate bench decisions in the case of Rajasthan Nursing Council (2025) 175 Taxmann.com 358(Jaipur) etc.

8.2 We have duly considered the rival submissions. We find that the assessee filed the return belatedly in the Covid period and this in itself appears to be reasonable cause for the delay. Having considered the facts and circumstances of the present case, we deem it appropriate A.Y. 2020-21 Shree Sunder Nagar Jain Sangh to restore the entire issue to the file of the ld.CIT(E) for de novo adjudication as none of the above grounds have been adjudicated by the ld.CIT(A). The assessee is also allowed the liberty to file all necessary evidences in support of its grounds. Consequently, both the above grounds are allowed for statistical purposes.