EMPEE EDUCATIONAL FOUNDATION,CHENNAI vs. CIT APPEALS, NATIONAL APPEALS CENTRE, NEW DELHI

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ITA 3302/CHNY/2024Status: DisposedITAT Chennai13 March 2025AY 2017-18Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI JAGADISH (Accountant Member)3 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 ruled that the CIT(A) erred by dismissing the appeal while the condonation petition was awaiting a decision from the CIT(E) under Section 119(2). Consequently, the Tribunal set aside the CIT(A)'s order and remitted the case for a fresh adjudication by the CIT(A) after the CIT(E) disposes of the condonation petition.

What were the facts?

The assessee, a charitable trust, accumulated income under Section 11(2) but filed Form-10 beyond the due date under Section 139(1) for AY 2017-18. The AO denied the accumulation benefit, and the CIT(A) dismissed the appeal, prompting the assessee to contend that a condonation petition was pending before the CIT(E).

What were the issues?

Whether the CIT(A) was justified in dismissing an appeal regarding the denial of income accumulation benefit due to late filing of Form-10, when a condonation petition was pending before the CIT(E) as per Section 119(2).

Which sections of the Income-tax Act were involved?

Section 12A,Section 11(2),Section 143(3),Section 139(1),Section 119(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI JAGADISH

Hearing: 13.03.2025Pronounced: 26.03.2025

आदेश / O R D E R

PER JAGADISH, A.M : Aforesaid appeal filed by the assessee is against the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre [NFAC], Delhi [hereinafter “[CIT(A)”] dated 23.10.2024.

2.

The assessee is a charitable trust registered u/s. 12A of the Act. The assessee has filed return of income for A.Y 2017-18 admitting Nil income. The assessee had made accumulation u/s. 11(2) of the Act of Rs. 92,26,776/- and filed the same in Form-10 on 31.03.2018. The A.O in the order passed u/s 143(3) of the Act, denied the benefit of income accumulation u/s. 11(2) of the Act as the Form 10, was not filled within the prescribed date. Aggrieved, the assessee filed an appeal before the Ld. CIT(A). However the Ld. CIT(A), dismissed the appeal due to delay in Filing Form-10 beyond the due date prescribed u/s. 139(1) of the Act.

3.

The Ld. Authorized Representative (A.R) of the assessee before us has submitted that the assessee has filed condonation petition before Ld. CIT(E), which is pending for disposal and therefore, Ld. CIT(A) was not justified to dismiss the appeal without awaiting the order of Ld. CIT(E).

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. The Ld. CIT(A), has dismissed the appeal against denying the claim u/s 11(2) as the Form-10 was filled beyond the due date prescribed u/s. 139(1) of the Act. The Ld. AR had submitted that Ld CIT(A) has dismissed the appeal though the condonation petition before Ld. CIT(E) was pending for disposal. We are of the opinion, that the Ld. CIT(A) was not justified to dismiss the appeal, when the condonation petition was pending to be decided by CIT(E) as per section 119(2) of the Act. Accordingly, we set aside the orders Ld. CIT(A) and remit the matter back to the file of Ld. CIT(A) for denovo adjudication after receipt of decision of Ld. CIT(E) on the condonation petition. 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 26th March, 2025.

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