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

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.

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.

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

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.