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Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: SHRI MAHAVIR SINGHAND SHRI MANOJ KUMAR AGGARWAL
O R D E R
PER MAHAVIR SINGH, VICE PRESIDENT:
This appeal by assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi in Appeal No.CIT(A), Chennai-17/10074/2020-21 vide order dated 26.03.2022. The return of income was processed by the ADIT, CPC, Bengaluru for the assessment year 2019-20, u/s.143(1) of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 14.08.2020.
The only issue in this appeal of assessee is against the order of CIT(A) confirming action of AO in disallowing the claim of deduction on the ground that the return of income was filed after due date as prescribed u/s.139(1)of the Act and audit report in Form No.10B was not filed electronically as required u/s.12A(b) r.w.s. 17B of the Income Tax Rules, 1962.
We have heard rival contentions and gone through facts and circumstances of the case. Brief facts are that the assessee’s is a public charitable trust having filed its return of income for assessment year 2019-20 on 18.06.2020 declaring total income at ‘nil’ after claiming exemption of Rs.53,28,30,800/- u/s.11 of the Act. The assessee filed its return of income along with audit report in Form No.10B but not electronically. Therefore, the AO while processing return u/s.143(1) of the Act, the CPC Bengaluru vide intimation dated 14.08.2020 disallowed the claim of exemption of Rs.53,28,30,800/- claimed by assessee u/s.11 of the Act. The claim was rejected by observing as under:- “As per the details furnished in the return, Assessee is registered u/s 12A/12AA. Claim of exemption has been made in Sl.No.4 I to 4 viiii of Schedule Part B-T1. Assessee has not E-filed the Audit Report in Form 10B along with Return of Income or before filing the return of income.”
Aggrieved, assessee preferred appeal before CIT(A).
The CIT(A) also confirmed the action of AO by holding that the return of income was filed by assessee after due date of filing of return u/s.139(1) of the Act and even report in Form No.10B was not filed electronically and for this, he observed in para 5.5 as under:- “5.5 The assessee was required to furnish the audit report in Form 10B before expiry of the time allowed u/s.139(1) of the IT Act. Since the return of income was filed after due date and audit report in the form 10B was not filed electronically as required u/s 12A(b) read with Rule 17B of the Income Tax Rules, 1962, therefore, exemption cannot be granted u/s 11 of the IT Act. This issue is decided against the appellant and the addition made by AO is confirmed. The ground raised by the appellant regarding the issue is dismissed.”
Aggrieved, assessee is in appeal before Tribunal.
Now before us, the ld.AR for the assessee filed a letter addressed by assessee to CBDT dated 25.11.2022, wherein petition u/s.119(2)(b) of the Act for condonation of delay in filing return of income for the relevant assessment year 2019-20 is filled. The relevant text of the letter reads as under:- “We are an assessee assessed to tax in PAN: AACTS4524P before ACIT (Exemptions), Chennai.
We herewith enclose a petition, in triplicate, for condonation of delay in filing return of income u/s 119(2)(b) of the Act read with Circular of the CBDT (No. 9/2015 [F.No.312/22/2015-OT], dated 9th June 2015 (dealing with the applications for condonation of delay in filing returns, claiming refund and returns claiming carry forward of loss and set-off thereof."
- 4 - We noted that till date, the CBDT has not decided the petition filed by assessee and hence, we are not in a position to take decision whether to allow the appeal of assessee or dismiss the same. Since the matter is to be adjudicated by the CBDT whether to condone the delay in filing return of income in the case of assessee u/s.119(2)(b) of the Act, in the mean time, we restore this matter back to the file of the AO who will frame assessment after considering the decision taken by CBDT on petition filed u/s.119(2)(b) of the Act. Needless to say, assessee will also pursue with CBDT for expeditious disposal of the petition as well as the AO. In term of the above, we remand the matter back to the file of the AO and appeal of the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 20th December, 2022 at Chennai.