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

PDF · subscribers
ITA 1102/CHNY/2025Status: DisposedITAT Chennai29 September 2025AY 2022-234 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CPC disallowed the assessee's claim for exemption towards corpus donations without providing adequate opportunity. Furthermore, concerning the denial of exemption under Sections 11 & 12 for non-filing of the audit report in Form 10B within the prescribed date, the Tribunal noted the assessee's submission that a petition for condonation of delay under Section 119(2)(b) was pending before the learned CCIT, Coimbatore. Accordingly, the Tribunal set aside the impugned orders and restored the matter to the file of the AO. The AO was directed to decide the assessee's claim afresh after providing a proper opportunity and awaiting the decision of the CCIT on the condonation petition. The appeal was allowed for statistical purposes only.

What were the facts?

The assessee, Tirupur Vision Rotary Trust, filed its return of income for Assessment Year 2022-23 claiming an exemption of Rs. 12,84,457/-. The Centralized Processing Center (CPC), Bengaluru, acting as the Assessing Officer (AO), issued an intimation under Section 143(1) of the Income-tax Act, 1961. The CPC disallowed the assessee's claim for corpus donations amounting to Rs. 29,57,595/- and denied exemption under Sections 11 & 12 of the Act. The reason cited was the non-filing of the audit report in Form 10AB within the prescribed time. The assessee appealed to the Additional Commissioner of Income Tax (Appeals) [Addl. CIT(A)], who dismissed the appeal, confirming the adjustments made by the CPC.

What were the issues?

1. Whether the adjustment of Rs. 29,57,595/- in respect of investment claimed under Section 11(5) by the CPC, without providing an opportunity to the assessee, is valid? (Question of mixed law and fact) Assessee's Contention: The assessee argued that the CPC made the adjustment without providing any opportunity, and therefore, the adjustment needs to be set aside. Regarding the denial of exemption under Sections 11 and 12 for not filing the audit report in time, the assessee submitted that a petition under Section 119(2)(b) of the Act was filed before the Principal Commissioner of Income Tax (CCIT), Coimbatore, seeking condonation of delay in filing the return, and this petition was still pending. The assessee prayed for the order to be set aside and the matter remitted for proper opportunity and consideration of the condonation petition's outcome. Revenue's Contention: The Departmental Representative relied upon the orders of the lower authorities.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 11,Section 12,Section 11(5),Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: SHRI MANU KUMAR GIRI & SHRI JAGADISH

Hearing: 25.09.2025Pronounced: 29.09.2025

आदेश / O R D E R

PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2022-23 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Kolkata [hereinafter “Addl. CIT(A)”] dated 25.03.2025 vide intimation u/s. 143(1) of the Income-tax Act, 1961 (hereinafter “the Act”) issued by Centralized Processing Center, Bengaluru [AO] dated 31.03.2023.

2.

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.

3.

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.

4.

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

5.

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.

1.

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.

Thus, the appeal filed by the assessee is allowed for statistical purposes only.

6.

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

More judgments on Section 11

All 7,190 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →