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Facts
The assessee, a charitable trust, filed an appeal with a delay of 236 days. The delay was attributed to internal administrative challenges, difficulties in assembling the executive committee, and finding a representative. The assessee also possessed an exemption certificate dated much before the Assessing Officer's order, which was not considered.
Held
The Tribunal condoned the delay in filing the appeal, considering the reasons provided were unintentional. The Tribunal noted that a valid exemption certificate was available with the assessee and that the Assessing Officer had not considered it.
Key Issues
Whether the delay in filing the appeal should be condoned and whether the exemption certificate should be considered.
Sections Cited
143(3), 144B, 250, Income Tax Act, 1961
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Income Tax Appellate Tribunal, “A” BENCH”, KOLKATA
order
: 09.07.2025 O R D E R
PER SANJAY AWASTHI, ACCOUNTANT MEMBER
In this case, there is a delay of 218 days which has been requested to be condoned through an affidavit as under:
“1. That an appeal has been preferred by the appellant before Hon'ble Income Tax Appellate Tribunal, Kolkata against the order of the Ld. Commissioner of Income Tax (NFAC), Delhi, upholding the assessment order under section 143(3) read with section 144B for the Assessment year 2018-19, in respect section 250 of the Income Tax Act, 1961.
The said order of the Ld. Commissioner of Income Tax (NFAC), Delhi, was passed and received by mail on 11.07.2024. Therefore, the appeal should have been instituted within 60 days from the receipt of such order, i.e., on or before 09.09.2024.
3. The appeal is being filed on or after 05.05.2025, with a prayer for condonation of a delay of 236 days.
Broadway Charitable Trust 4. The reasons for such delay are submitted as under: a) That the Appellant is an educational institution whose primary objective is to provide education to children, thereby contributing to the betterment of society without regard to caste or creed. The Appellant is a registered society, and the school is affiliated with the appropriate authority of the Education Board/Council. b) That the Appellant is a charitable trust, and its governing body members, who are volunteers, did not assemble as frequently as required for the institution's administrative activities. Due to this, the decision to file an appeal before this Hon'ble Tribunal in connection with the assessment order under section 143(3) read with section 144B for the Assessment Year 2018-19, in respect of the order under Section 250 of the Income Tax Act, 1961, could not be taken in a timely manner. c) That the Appellant could not engage an advocate in time to file the appeal before this Hon'ble Tribunal. d) That the Appellant faced internal challenges among the Executive Committee members responsible for the institution's administration. These challenges hindered the Executive Committee from functioning effectively and making timely decisions, including the decision to file the appeal before the Hon'ble OF Income Tax Appellate Tribunal, Kolkata, in connection with the assessment order under section 143(3) read with section 144B of the Income Tax Act, 1961, for the Assessment Year 2018- 19, in respect of the order under Section 250 of the Income Tax Act, 1961. Specifically: There was a lack of consensus on the way forward in responding to the assessment order. Key members of the committee were unavailable due to personal reasons and health issues. The trust also faced difficulties in organizing meetings of the executive committee. e) That the Appellant could not find a representative in their locality and finally assigned the present authorized representative, Advocate Sri Paban Kumar Ray, on 30.04.2025, to file the appeal and take the necessary steps before the Hon'ble Income Tax Appellate Tribunal, Kolkata, to seek justice concerning the disputed demand for the Assessment Year 2018-19. The delay was not due to any malafide intention, but solely due to the reasons stated above. The Appellant was genuinely prevented from filing the appeal within the prescribed time. Therefore, it is requested that, as the delay is unintentional, the delay of 236 days in filing the appeal may be condoned, and the appeal may be admitted for adjudication on its merits, in the interest of substantial justice. Prayer: In view of the above submissions, it is respectfully requested that this Hon'ble Tribunal accept that the delay in filing the appeal was unintentional and not due to any negligence. It is therefore prayed that the delay of 236 days be condoned, and the appeal be considered on its merits, in the interest of substantial justice.”
2. This appeal arises from the order u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”), dated 12.07.2024, passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereafter “the Ld. CIT(A)”].
2.1 Through this order, the action of Ld. AO in completing the assessment at income of Rs. 63,54,388/- after making certain additions, has been confirmed at first appeal stage mainly on account of non- compliance of the assessee to the notices fixing the case for hearing. The fact of non-compliance has been recorded on pages 2 and 3 of the impugned order.
2.2 Aggrieved with this action, the assessee has approached the ITAT. Before us, the Ld. AR mentioned the fact that the assessee had obtained an exemption certificate on 09.04.2019, much before the date of the Ld. AO’s order, which is 21.04.2021. However, the Ld. AO did not consider this fact and prayed that the matter may be remanded back to the file of Ld. AO so that the exemption certificate dated 09.04.2019 could be considered and the relief granted as per law.
2.3 The Ld. DR relied on the orders of authorities below.
We have carefully considered the records before us and also the averments of Ld. AR/DR. Considering the totality of facts and circumstances of the case, since it is observed that a valid exemption certificate is available with the assessee, we deem it fit to remand this matter back to the file of Ld. AO, after setting aside the impugned order. The assessee would present the facts before the Ld. AO, who would give an adequate opportunity of being heard.
In result, this appeal is allowed for statistical purposes having been remanded to the file of Ld. AO.