VIKAS SHIKSHAN MANDAL MOUJE SANGAON,KAGAL vs. INCOME TAX OFFICE, KOLHAPUR

Assessee has raised following grounds of appeal:-

1. 1. 1. On the facts and circumstances of the case and in law the CITIA), NFAC erred in not condoning the delay in filling the appeal ever though the appellant had justified the delay by submitting reasons therefore along with affidavit in support.

We have heard rival contentions and perused the record placed before us. We observe that the assessee is a Charitable Trust and engaged in the charitable activities of imparting education and running a school in the village of Sangaon, Taluka: Kagal, District: Kolhapur and 98.22% of the total receipts are from the Government grants. The assessee has claimed that it is eligible for deduction u/s 10(23C)(iiiab) of the Act and also has a registration u/s 12A of the Act. We further observe that the assessee filed the return of income for A.Y. 2020-21 on 30.12.2020 and the same was processed on 30.11.2021 and as against the NIL income declared by the assessee, Centralised Processing Centre (CPC) has processed the return assessing Rs. 1,81,99,353/- We further observe that against the CPC order u/s 143(1) of the Act dated 30.11.2021, assessee preferred the appeal before Ld. CIT(A) on 20.08.2022. Admittedly the CPC order has been passed during the Covid-19 pandemic period and limitation period was extended but even after considering the extension limitation period the appeal of the assessee was delayed before Ld. CIT(A) and said delay has not been condoned and appeal has been dismissed as not maintainable and has not dealt on merits of the case.

We observe that major cause of delay is due to Covid-19 pandemic restrictions. Also no physical notice/information was received by the assessee for the intimation passed u/s 143(1)(a) of the Act. It is also stated that notice raising the demand against the assessee was not reflected on the E-Portal under the E-Proceedings. We find that the assessee has been prevented from sufficient cause from filing the appeal before the Ld. CIT(A). Therefore placing reliance on the judgement of the Hon’ble Apex Court in the case of Collector, Land Acquisition vs. Master Katiji and Others(1987) 167 ITR 471(SC) (Supreme Court) and in the case of Inder Singh Vs State of Madhya Pradesh judgement dated 21.03.2025 (2025) INSC 382) and taking a liberal approach, we hereby condone the delay before Ld. CIT(A).

So far as merits of the case are concerned the assessee has filed Paper Book running into 131 pages providing various details including Audited financial statement, Registration Certificate for running the School and various other details including judicial precedence. Considering the facts and circumstances of the case as well as the details filed by the assessee in the paper book, we deem it appropriate to restore the issue on merits raised in the instant appeal to the file of the Ld. Jurisdictional Assessing Officer (JAO) before whom the assessee with the support of documentary evidence shall demonstrate about the educational activities carried out by it and that it is eligible for the benefit of exemption u/s 10(23C)(iiiab) of the Act as well as u/s 11 r.w.s 12A of the Act. Ld. JAO after examining the same shall decide in accordance with law. Needless to mention that proper opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.

In the result, appeal of the assessee is allowed for statistical purposes.