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

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.

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).

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. 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.