CHILUME SOCIAL SERVICE SOCIETY vs. THE INCOME TAX OFFICER

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ITA/123/2025HC KarnatakaKAHC01038488202501 August 2025Bench: CHIEF JUSTICE,C M JOSHI5 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that neither the CIT(A) nor the ITAT had failed to exercise their discretion in dismissing the appeals on the grounds of delay. The Court found no perversity in their decisions. The High Court concluded that, given the facts and circumstances, no substantial question of law arose for consideration. Therefore, the appeals filed by the assessee before the High Court were dismissed. The reasoning was that the assessee's explanation for the seven-year delay in filing appeals before the CIT(A) (adverse health of the trustee) was unsubstantiated, and both lower appellate authorities had reasonably exercised their discretion in declining to condone such a significant delay. The High Court did not decide any issue on the merits of the assessment orders themselves, as the appeals were disposed of on a procedural ground.

What were the facts?

The assessee, Chilume Social Service Society, has filed two appeals before the High Court of Karnataka challenging a common order dated 28.05.2025 passed by the Income Tax Appellate Tribunal (ITAT). The ITAT's order consolidated appeals related to Assessment Year (AY) 2018-19 (ITA No. 249/Bang/2025) and AY 2015-16 (ITA No. 248/Bang/2025). The assessee had appealed to the ITAT against orders of the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) had dismissed the assessee's appeals against the assessment orders due to an inordinate delay of seven years in filing them. The assessee's sole explanation for this delay was the adverse health conditions of its trustee, which was not substantiated with any material evidence. The CIT(A) also noted a similar delay in filing the income tax return for one of the assessment years, attributed to the same reason.

What were the issues?

1. Whether the High Court should interfere with the concurrent findings of the CIT(A) and the ITAT regarding the condonation of delay in filing appeals before the CIT(A), which turns on the interpretation and application of principles of natural justice and discretion vested in appellate authorities under the Income Tax Act, 1961. Assessee's Contention: The assessee contended that the delay in filing the appeals before the CIT(A) was due to the adverse health conditions of its trustee and sought condonation of this delay. The assessee implicitly argued that the CIT(A) and ITAT erred in not accepting this explanation and dismissing the appeals on technical grounds, thereby denying a substantive hearing on merits. Revenue's Contention: The judgment does not record any specific contentions made by the revenue before the High Court. However, it is evident from the facts that the revenue, through the CIT(A) and ITAT, opposed the condonation of delay, emphasizing the lack of substantiation for the assessee's explanation and the inordinate period of delay.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

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HC-KAR NC: 2025:KHC:29775-DB ITA No. 122 of 2025 & ITA No. 123 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 1ST DAY OF AUGUST, 2025

PRESENT

THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE

AND

THE HON'BLE MR. JUSTICE C M JOSHI

INCOME TAX APPEAL NO. 122 OF 2025 AND

INCOME TAX APPEAL NO. 123 OF 2025

IN ITA No. 122/2025 BETWEEN: 1. CHILUME SOCIAL SERVICE SOCIETY 18, 5TH CROSS, KAMANNAHALLI ST. THOMAS TOWN S.O. BANGALORE NORTH BANGALORE - 560 084 KARNATAKA, INDIA PAN AAATC9991L REPRESENTED BY A V JOSEPH …APPELLANT (BY SRI. A MAHESH CHOWDHARY, ADVOCATE)

AND: 1. THE INCOME TAX OFFICER (EXEMPTIONS) WARD -1 UNITY BUILDING ANNEXE MISSION ROAD BANGALORE - 27 …RESPONDENT

Digitally signed by AMBIKA H B Location: High Court of Karnataka

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HC-KAR NC: 2025:KHC:29775-DB ITA No. 122 of 2025 & ITA No. 123 of 2025

THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF THE INCOME TAX ACT, 1961, PRAYING TO SET ASIDE THE APPELLATE ORDER DATED 28.05.2025 IN ITA NO.249/BANG/2025 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, 'A' BENCH, BANGALORE FOR THE A.Y.2018-19 VIDE ANNEXURE-A.

IN ITA NO. 123/2025 BETWEEN: 1. CHILUME SOCIAL SERVICE SOCIETY 18, 5TH CROSS, KAMANNAHALLI ST. THOMAS TOWN S.O. BANGALORE NORTH BANGALORE - 560 084 KARNATAKA, INDIA PAN AAATC9991L REPRESENTED BY A V JOSEPH ...APPELLANT (BY SRI. A MAHESH CHOWDHARY, ADVOCATE)

AND: 1. THE INCOME TAX OFFICER (EXPEMTIONS) WARD-1 UNITY BUILDING ANNEXURE MISSION ROAD BANGALORE - 27 ...RESPONDENT

THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, PRAYING TO SET ASIDE THE ORDER DATED 28.05.2025 IN ITA NO.248/ BANG/2025 PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, 'A' BENCH, BENGALURU, FOR THE ASSESSMENT YEAR 2015- 16 VIDE ANNEXURE-A.

THESE APPEALS, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

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HC-KAR NC: 2025:KHC:29775-DB ITA No. 122 of 2025 & ITA No. 123 of 2025

CORAM: HON'BLE MR. VIBHU BAKHRU ,CHIEF JUSTICE and HON'BLE MR. JUSTICE C M JOSHI

ORAL JUDGMENT

(PER: HON'BLE MR. VIBHU BAKHRU,CHIEF JUSTICE) 1. The appellant [Assessee] has filed the present appeals impugning a common order dated 28.05.2025 passed by the Income Tax Appellate Tribunal [ITAT] in ITA Nos.248 to 250/Bang/ 2025. The above captioned ITA No.122/2025 is an appeal against the impugned order insofar as it relates to ITA No.249/Bang/2025 in respect of the Assessment Year [AY] 2018-19. And, ITA No.123/2025 is an appeal against the impugned order insofar as it relates to ITA No.248/Bang/ 2025 in respect of AY 2015-16.

2.

The Assessee had filed appeals before the learned ITAT assailing the orders dated 13.12.2024, passed by the learned Commissioner of Income Tax (Appeals) [CIT(A)]. The said appeals were rejected as the learned ITAT found no infirmity with the decision of the learned CIT(A) dismissing the appeals preferred by the Assessee against the assessment orders in respect of the relevant assessment years, on account of delay. The learned

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HC-KAR NC: 2025:KHC:29775-DB ITA No. 122 of 2025 & ITA No. 123 of 2025

CIT(A) had declined to condone the inordinate delay of seven years in filing the appeals.

3.

The only explanation provided by the Assessee for delay in filing the appeals was that the trustee was suffering from adverse health conditions. Concededly, no material was furnished to substantiate the aforesaid contention. The learned CIT(A) also noticed that the income tax return filed by the Assessee for one of the assessment years was also delayed and the reasons provided for the delay in a letter addressed to the Principal Commissioner of Income Tax was identical to the one proffered for explaining the delay in filing the appeals; that is, the trustee was suffering from adverse health issues. Thus, not only was the filing of the return delayed for the reason of adverse health issues of the trustee but, the seven years of delay thereafter was also sought to be explained for the very same reason.

4.

Being aggrieved by the orders passed by the CIT(A), the Assessee preferred the abovementioned appeals before the ITAT. However, the ITAT found no grounds to fault the decision of the CIT(A).

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HC-KAR NC: 2025:KHC:29775-DB ITA No. 122 of 2025 & ITA No. 123 of 2025

5.

We are unable to accept that either the learned CIT(A) or the ITAT has failed to exercise its discretion or that the decision suffers from any perversity. Plainly, in the given facts and circumstances of the present case, no substantial question of law arises for consideration of this Court.

6.

The appeals are, accordingly, dismissed.

Sd/- (VIBHU BAKHRU) CHIEF JUSTICE

Sd/- (C M JOSHI) JUDGE

AHB List No.: 1 Sl No.: 7

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