SHEVAROYS VIRUTHAMBAL CHARITABLE TRUST,SALEM vs. ITO, EXEMPTION WARD,, SALEM

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ITA 1066/CHNY/2025Status: DisposedITAT Chennai16 July 2025AY 2017-18Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI JAGADISH (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the delay in filing Form 10B was condoned by the CIT(E). The Tribunal remitted the matter back to the AO to give effect to the CIT(E)'s order and allow the claim under sections 11 & 12.

What were the facts?

The assessee, a registered trust, filed its return showing Nil income after claiming exemptions under sections 11 & 12 of the Act. The AO added Rs. 1,51,43,413/- for excess income, denying the exemption due to belated filing of the return.

What were the issues?

Whether the assessee is eligible for exemption under sections 11 & 12 of the Act when the return was filed belatedly, despite the delay being condoned by the CIT(E).

Which sections of the Income-tax Act were involved?

Section 144,Section 11,Section 12,Section 12A,Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI JAGADISH

Hearing: 18.06.2025Pronounced: 16.07.2025

आदेश / O R D E R

PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 17.03.2025 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 of the Income-tax Act,1961 (hereinafter “the Act”) on 31.12.2019.

2.

The assessee is a registered trust u/s. 12A of the Act. The assessee has filed its return of income along with Form-10B on 30.07.2019 showing total income Nil after claiming exemption u/s. 11 & 12 of the Act. The Assessing Officer in the assessment order has made an addition of Rs. 1,51,43,413/- towards excess of income over expenditure denying exemption u/s 11 & 12 of the Act, as the return was filed belatedly. Aggrieved, the assessee filed an appeal before the Ld. CIT(A) on 31.01.2020. The Ld. CIT(A) dismissed the appeal ex- parte.

3.

The Ld. Authorized Representative (A.R) of the assessee has submitted that the A.O has denied the exemption u/s 11 &12 as the return was filled belatedly, but subsequently the Ld. CIT(E) has condoned the delay in filing Form-10B u/s. 119(2)(b) of the Act vide order dated 30.03.2024. The Ld AR submitted that the Ld. CIT(A) has not considered the order of Ld CIT(E) , therefore requested that one more opportunity may be granted in the interests of justice to substantiate its claim.

4.

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

5.

We have heard the rival submissions, and perused the materials available on record. It is noted that the A.O has denied the exemption u/s. 11 and 12 of the Act solely on the ground that the return along with Form 10B was filed belatedly. The Ld. A.R has submitted a copy of the order passed by the Ld. CIT(E) condoning the delay in filing Form 10B. Considering the above and in the interest of justice, we deem it appropriate to remit the matter back to the file of the A.O to give effect to the order of the Ld. CIT(E) and allow the claim u/s. 11 and 12 in accordance with law. We also direct the assessee to appear before the A.O on the date of hearing without fail. In view of the above, 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.

Order pronounced on 16th day of July, 2025 at Chennai.

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