MADHANANDAPUAM SAI SAMAJ,CHENNAI vs. CIT EXEMPTIONS, CHENNAI

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ITA 416/CHNY/2019Status: DisposedITAT Chennai27 July 2021AY 2015-164 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal, citing the principle of substantial justice over technical considerations. They also decided to give the assessee one more opportunity to present their case before the CIT(Exemptions).

What were the facts?

The assessee filed an appeal with a significant delay of 1190 days. The delay was attributed to the non-receipt of the order rejecting their application for registration under section 12AA and the disappearance of their auditor. The Tribunal considered the reasons provided as sufficient cause.

What were the issues?

Whether the delay in filing the appeal should be condoned and whether the assessee should be granted another opportunity to substantiate their claim for registration.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: SHRI V. DURGA RAO & SHRI G. MANJUNATHA

Hearing: 15.07.2021Pronounced: 27.07.2021

Madhanandapuram Sai Samaj, The Commissioner of Income 99, Mahalingam Street, Tax (Exemptions), Santhosh Nagar, Vs. Chennai. Madhanandapuram, Chennai – 600 125. [PAN: AADTM 8564G] (&'थ(/Respondent) (अपीलाथ"/Appellant) अपीलाथ( की ओर से/ Appellant by : Mr. S. Sridhar, Advocate &'थ( की ओर से /Respondent by : Mr. S. Bharath, CIT सुनवाई की तारीख/Date of Hearing : 15.07.2021 घोषणा की तारीख /Date of Pronouncement : 27.07.2021 आदेश / O R D E R

PER SHRI V. DURGA RAO, JUDICIAL MEMBER:

1.

This appeal filed by the assessee is directed against the order of the learned Commissioner of Income Tax (Exemptions), Chennai in F No.CIT(E)2(952)/2014-15 dated 31.08.2015 relevant to the Assessment Year 2015-16. 2 -: 2. There is a delay of 1190 days in filing the appeal, for which, the assessee has filed affidavit for condonation of delay, wherein he has submitted reasons as under:

“2.The application for registration under section 12AA field by the Trust immediately on formation had been declined by the Commissioner of Income tax (Exemptions) on 31/8/2015. The Trust did not receive the order of denial of registration for a long time. The Trust got knowledge about the denial of registration only when hearing for the scrutiny assessment for 2016-2017 was in progress. The Trust applied for issue of a certified copy of the order under section 12AA declining the registration. Thought the appeal had been filed immediately on getting the certified copy of the order under section 12AA there is a delay of 1,200 days in filing the appeal reckoning the due date from the date of order as the presumptive date of service. . The delay in filing the appeal was caused for reasons beyond the control of the Trust and they are listed below. 3.1 engaged Auditor Sri.Ayyappan Chartered Accountant,K.K.Nagar,Chennai to apply for registration of the Trust immediately on formation of the Trust before the Commissioner of Income tax (Exemptions) Chennai.

4. Sri. Ayyappan accordingly filed the application for registration and followed the same with all diligence and complied with all the letters of the department.

5. Sri. Ayyappan appeared without fail on the two hearing dates and filed the details called for .

6.

The trust did not receive any further communications and suddenly the Trust came to know about the denial of registration only when the case for 2016-2017 was taken up for scrutiny.

7.

Sri. Ayyappan had disappeared and he could not be traced now. The Trust did not know the status of the application for registration till the Assessing Officer intimated the Trust of the denial of registration during the course of the scrutiny assessment.

8.I applied for issue of a certified copy of the order under section 12AA and immediately on receipt of the certified copy an appeal had been filed before the honorable Tribunal.

Under the circumstances the Trustee submits that the honourable Tribunal may be pleased to condone the apparent delay of 1190 3 -: days in filing the appeal as seen from the order of the Commissioner (Exemptions ) and dispose of the appeal in the manner laid down under law.”

We have gone through the affidavit filed by the assessee. We find that it is a sufficient cause to condone the delay of 1190 days in filing of the appeal.

3.

In this context, the Hon’ble High Court of Andhra Pradesh in the case of M/s. Meridian Promoters P. Ltd. Vs. DCIT in ITTA No.157/2019, dated 18.10.2019 by following the decision of Hon’ble Supreme Court in the case of Collector, Land Acquisition, Anantnag v. Mst. Katiji, wherein it has observed as under:

While considering the applications for condonation of delay, what is to be seen is whether the interest of the revenue will stand protected, even while recognizing the right of the assessee to exercise the statutory remedies available to the assessee and the statutory right of appeal cannot be made redundant by dismissing the application for condonation of delay and rejecting the appeal on technical grounds. In our considered view when substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred, as held by the Supreme Court in Collector, Land Acquisition, Anantnag v. Mst. Katiji We, therefore respectfully following the above decision of the Hon’ble Andhra Pradesh High Court, we are of the opinion that delay has to be condoned. Accordingly, the delay is condoned.

4.

So far as the merits of the case is concerned, the assessee-trust has filed an application in Form No.10 for registration u/s. 12AA of the Income Tax Act, 1961 (hereafter ‘the Act’) on 24.02.2015. The ld. 4 -: CIT(Exemptions) called certain details and clarifications and there is no response from the assessee therefore, rejected the claim made by the assessee for registration u/s. 12AA of the Act. We find that in the interest of justice, one more opportunity should be given to the assessee to substantiate his case before the ld. CIT(Exemptions).

Accordingly, we set aside the order passed by the Ld. CIT(Exemptions) and remit the issues back to the file of ld. CIT(Exemptions) to decide the issue de novo in accordance with law. Accordingly, this appeal is allowed for statistical purpose.

5.

In the result, the appeal filed by the assessee is allowed for statistical purpose.

Order pronounced on 27th July, 2021 in Chennai. ("ी जी मंजूनाथा) (वी दुगा" राव) (V. DURGA RAO) (G. MANJUNATHA) लेखा सद"/ACCOUNTANT MEMBER "याियक "याियक सद"य "याियक "याियक द"य द"य/JUDICIAL MEMBER द"य चे"ई/Chennai, "दनांक/Dated: 27th July, 2021. EDN/-

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