SINDHI PANCHAYAT MALAD EAST AND WEST,MUMBAI vs. ASSESSING OFFICER, MUMBAI

आदेश / ORDER

PER SANDEEP GOSAIN, JUDICIAL MEMBER:

This appeal is filed by the Assessee against the order of Ld. Office of the CIT(A) Addl JCIT (A)-7 Delhi vide DIN: ITBA/APL/S/250/2025- 26/1084662615(1) dated 12-Jan-2026 for the Assessment Year 2017-18. The Assessee has raised the following grounds of appeal:

1.1 The Learned Commissioner of Income Tax (Appeals) CIT(A) has erred in law and on facts in dismissing the appeal in limine without adjudicating the grounds on merits.

1.2 The Learned CTT(A) failed to appreciate that the delay in filing the appeal was neither intentional nor deliberate but occurred due to bona fide and reasonable causes.

1.3 The Learned CIT(A) erred in holding that no sufficient cause was shown for condonation of delay and thereby refusing to admit the appeal.

1.4 The Learned CIT(A) ought to have appreciated that the appellant was not fully aware of the facts and circumstances of the assessment proceedings and the procedural requirements for filing the appeal.

1.5 The Learned CIT(A) further failed to appreciate that the delay was significantly attributable to the disruptions caused during the COVID-19 lockdown period, which had materially affected normal functioning and compliance procedures.

2.1 The Learned Assessing Officer has erred in law and on facts in denying the expenditure of Rs. 12,33,129 incurred wholly and exclusively for the purposes of running the institution and organizing its activities.

2.2 The Learned Assessing Officer disallowed the expenditure on the ground that the Trust was not registered under Section 12A of the Income-tax Act, 1961, without appreciating that: -The assessee filed return in form ITR-5 showing status as AOP. -The income was assessed under the head Business Income/ Income from Other Sources.

2.3 The Learned Assessing Officer failed to appreciate that once income is assessed under the head Business OR Income from Other Sources, the corresponding expenditure incurred for earning such income is allowable under the provisions of the Act.

2.4 The Learned Assessing Officer erred in not allowing legitimate business expenditure, without which the income could not have been generated.

2.5 In assessee own case in AY 18-19 the CIT(A) is allowed, and the disallowed amount is to be granted as a deduction, with no addition thereon. 2.6 The action of the Assessing Officer is contrary to the ratio laid down by the Honourable ITAT, Amritsar Bench in the case of Langar Committee Hanuman Mandir v. ITO (Exemption) Ward, Jalandhar (1.T.A. No. 516/ASR/2017 for A.Y. 2014-15), wherein it was held that even in the absence of registration under Section 12A, expenditure incurred for earning income is allowable while computing taxable income.

01.07.2020. In support of the request for condonation of delay, Ld. AR drew our attention to Page No. 5 of the Paper Book, which contains the affidavit filed by the trustee explaining the reasons for the delay in filing the appeal and the same is reproduced herein below:

6. Be that as it may, without going into the merits of the issues raised by the assessee and considering the fact that appeal was dismissed because the assessee could not satisfy Ld. CIT(A) for seeking condonation of delay and now since, we have condoned the delay in filing the appeal before Ld. CIT(A), therefore, the Bench is of the view that adequate opportunity should be given to the assessee to represent his case before the Ld. CIT(A) for adjudication of the appeal on merits. Therefore, considering the overall circumstances of the present case, we deem it proper to restore the matter to the file of the Ld. CIT(A) for deciding the matter afresh after providing adequate opportunity of being heard to the assessee, subject to a cost of Rs. 2,000/- imposed upon the assessee, which shall be deposited in the Prime Minister's National Relief Fund. A copy of the receipt shall be placed on record before the Ld. CIT(A) within 30 days from the date of receipt of this order.

10. Since we have restored the matter to the file of the Ld. CIT(A) for adjudication on merits therefore, the other grounds raised by the assessee do not require adjudication at this stage in view of our above directions.

Order pronounced in the open court on 19.06.2026.

Sd/- Sd/- BIJAYANANDA PRUSETH SANDEEP GOSAIN ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai Dated: 19.06.2026 RY-Sr. PS Copy to: SINDHI PANCHAYAT MALAD EAST AND WEST, 17/3, JAKERIA COMPOUND, JAKERIA 1 ROAD, MALAD WEST, MUMBAI-400064, MAHARASHTRA ASSESSING OFFICER, EXEM. WARD 2(3), CUMBALLA HILL 2 ,MTNL BUILDING, PEDDER ROAD, MUMBAI-400026, MAHARASHTRA 3 THE PCIT / CIT, 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE