TIRUPUR VISION ROTARY TRUST,TIRUPUR vs. ACIT, EXEMPTIONS,, COIMBATORE

The assessee is a Trust and filed its return of income at Nil after claiming exemption of Rs.12,84,457/-. In the intimation issued u/s. 143(1) of the Act, the CPC disallowed the assessee’s claim of corpus donations of Rs. 29,57,595/-, and did not allow exemption u/s. 11 & 12 of the Act , on the ground that the assessee had not filed the audit report in Form 10AB within the prescribed time. Aggrieved, the assessee preferred an appeal before the Ld. Addl. CIT(A) who dismissing the appeal by confirming the adjustments.

The learned Authorized Representative (AR) of the assessee submitted additional ground that the CPC has made adjustment of Rs.29,57,595/- in respect investment claimed u/s 11(5) without providing any opportunity and therefore adjustment needs to be set aside. The Ld. AR in respect of denial exemption u/s 11 and 12 for not filling audit report in time has submitted that assessee has filed a petition u/s. 119(2)(b) of the Act before the Ld. CCIT, Coimbatore, seeking condonation of delay in filing the return of income, and the said petition is still pending. The Ld. A.R thus prayed that the order of the Ld. Addl. CIT(A) be set aside and the matter remitted to be decided for providing proper opportunity and after considering the outcome of the condonation petition filed before the CCIT, Coimbatore.

On the other hand, the Ld. Departmental Representative (DR) relied upon the orders of the lower authorities.

We have heard the rival submissions and perused the material available on record. The CPC has disallowed the assessee’s claim of exemption towards corpus donations without providing adequate opportunity to the assessee and as regards to denial of exemption under sections 11 & 12 of the Act for the reason that audit report in Form 10B has not been filed within the prescribed date, the Ld. AR has brought to our notice that the assessee has filed a petition for condonation of delay in filing the return of income u/s. 119(2)(b) of the Act, which is presently pending before the learned CCIT, Coimbatore.

Accordingly, we set aside the impugned orders and restore the matter to the file of the A.O, with a direction to decide the assessee’s claim afresh after providing proper opportunity to the assessee and awaiting the decision of the Ld. CCIT, Coimbatore, on the condonation petition.

In the result, the appeal filed by the assessee is allowed for statistical purposes.