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Facts
The assessee, a charitable religious trust registered under Section 12AA of the Income Tax Act, 1961, filed a return of income for AY 2024-25 declaring 'Nil' income. The CPC processed the return under Section 143(1), demanding Rs. 1,03,750/- by rejecting the exemption claim under Section 11.
Held
The Tribunal noted that the assessee had filed an application for condonation of delay in renewing its exemption registration, which was pending. Therefore, to meet the ends of justice, the matter was remanded back to the Assessing Officer (AO) for de novo adjudication.
Key Issues
Whether the matter should be remanded to the AO for de novo adjudication in light of the pending application for condonation of delay in renewal of exemption registration.
Sections Cited
12AA, 11, 143(1)
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
This appeal filed by the assessee is directed against the order of the ADDL/JCIT(A)-8, Mumbai [CIT(A)] dated 25.03.2025 for Assessment Year (AY) 2024-25.
Brief facts of the case are that the assessee is charitable religious trust, registered u/s. 12AA of the Income Tax Act, 1961 (for short, 'the Act') on 26/02/2021. Return of income for the AY 2024-25 was filed on 26.09.2024 declaring total income of Rs. Nil Mammalassery Mor Michael after claiming exemption u/s. 11 of the Act. The said return of income was processed u/s. 143(1) of the Act on 28.01.2025 by the CPC raising demand of Rs. 1,03,750/- and rejecting the claim of the assessee for exemption u/s. 11 of the Act.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO stating that registration u/s. 12AA was not renewed before the due date.
Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal.
The learned A.R. submitted that the assessee had filed an application before the Commissioner of Income Tax (Exemption), Kochi on 19.12.2024 for condoning the delay in renewal of the exemption registration. Therefore, it is prayed that the matter may be restored to the AO for adjudication in accordance with the outcome of the application of the assessee.
The learned Sr. DR did not raise any serious objection to the submission of the assessee.
I heard the rival contentions of both the parties and perused the material available on record. Since the application filed by the appellant for condonation of delay for renewal of the registration is pending before the Commissioner of Income Tax (Exemption), in order to meet the ends of justice, I am of the considered opinion that Mammalassery Mor Michael the matter is required to be remanded back to the file of the AO for de novo adjudication in accordance with law after affording reasonable opportunity of hearing to the assessee. Ordered accordingly.
In the result, the appeal filed by the assessee stands allowed for statistical purposes.
Order pronounced in the open court on 31st July, 2025.