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Facts
The assessee filed an appeal with a delay of 35 days. The Assessing Officer had assessed total income at ₹.1,46,82,799/- denying exemption under Section 11(2) of the Income Tax Act as Form 10 was not filed.
Held
The Tribunal held that the reasons for the delay in filing the appeal were bonafide and prevented the assessee from filing on time. The CIT(A) was directed to condone the delay and adjudicate the appeal on merits.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal without condoning the delay, and if the reasons for the delay were bonafide.
Sections Cited
11(2), 143(3)
AI-generated summary — verify with the full judgment below
Before: Shri S.S. Viswanethra Ravi & Shri Ratnesh Nandan Sahay
Year: 2016-17 Vishanthi Educational Trust, Vs. The Income Tax Officer, New No. 32, Old No. 8, Manna Reddy Exemption Ward 4, Street, T. Nagar 600 017. Chennai. [PAN:AAATV3798A] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Ms. N.V. Lakshmi, Advocate ��थ� की ओर से/Respondent by : Ms. Sandhya Rani Kure, JCIT सुनवाई की तारीख/ Date of hearing : 17.09.2025 घोषणा की तारीख /Date of Pronouncement : 26.09.2025 आदेश /O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 25.06.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2016-17.
The assessee raised 9 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified dismissing the appeal of the assessee without condoning the delay in filing the appeal in the facts and circumstances of the case.
At the outset, we note that the assessee filed its return of income admitting NIL income. During the course of assessment proceedings, the Assessing Officer noted that there was an accumulation of ₹.1,46,82,799/- during the relevant FY. Since the assessee has not filed Form No. 10 to claim the accumulation as exempt under section 11(2) of the Income Tax Act, 1961 [“Act” in short], the Assessing Officer completed the assessment under section 143(3) of the Act by assessing total income at ₹.1,46,82,799/- denying the claim of exemption under section 11(2) of the Act.
The assessee filed an appeal before the ld. CIT(A) with a delay of 35 days in filing the appeal. The assessee also sought for condonation of delay in Form 35. The ld. CIT(A) dismissed the appeal of the assessee stating that there is no sufficient cause for the delay.
The ld. AR Ms. N.V. Lakshmi, Advocate submits that the assessee trust furnished the reasons for the short delay in filing the appeal before the ld. CIT(A) is neither wilful nor wanton, but, for the reason that the Accountant of the trust went on long leave without any notice and the assessee was not aware of filing the appeal. The ld. CIT(A) disbelieved the reason stated by the assessee and dismissed the appeal filed by the assessee is not justified. Thus, the ld. AR prayed that the short delay may be condoned and directed the ld. CIT(A) to adjudicate the grounds on merits.
The ld. DR Ms. Sandhya Rani Kure, JCIT relied on the order passed by the ld. CIT(A).
Having heard both the parties, we find that in Form 35, the assessee has stated the reasons for the delay of 35 days in filing the appeal before the ld. CIT(A) that the Accountant of the assessee trust went on long leave without notice and the assessee was not aware of filing of appeal. We find that the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Accordingly, we direct the ld. CIT(A) to condone the delay in filing the appeal and adjudicate the issue on merits in accordance with law. The assessee is at liberty to file explanations with documentary evidence, if any, in substantiating its claim before the ld. CIT(A). Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th September, 2025 at Chennai.