MOUNT CARMEL EDUCATIONAL SOCIETY ,TRIVANDRUM vs. ITO, EXEMPTION WARD, TRIVANDRUM
Facts
The appellant, a charitable trust registered u/s 12A, filed a nil return for AY 2017-18 claiming exemption u/s 11. The CPC processed the return u/s 143(1), denying exemption and assessing income at Rs. 2,03,20,447/- due to the non-filing of Form 10B. The CIT(A) dismissed the appeal, asserting that the power to condone the delay in filing Form 10B rests with the Chief Commissioner of Income Tax, not the appellate authority.
Held
The Tribunal found the CIT(A)'s order cryptic as it did not address all the contentions raised by the appellant. Both parties agreed to remand the matter back to the CIT(A). The Tribunal directed the CIT(A) to pass a reasoned order after considering all the appellant's contentions and affording a reasonable opportunity of hearing.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal without addressing all contentions regarding the non-filing of Form 10B and the scope of adjustment under Section 143(1), and if the matter should be remanded for de novo consideration.
Sections Cited
12A, 11, 143(1)
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI PRAKASH CHAND YADAV, JM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 72/Coch/2025 Assessment Year: 2017-18 Mount Carmel Educational Society .......... Appellant Kanjiramkulam P.O., Thiruvananthapuram 695524 [PAN: AABAM3865A] vs. ITO, Ward-1(1), Thiruvananthapuram .......... Respondent Appellant by: Ms. Binisha Baby, Advocate Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 28.05.2025 Date of Pronouncement: 26.06.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-2, Ludhiana [CIT(A)] dated 30.121.2024 for Assessment Year (AY) 2017-18.
Brief facts of the case are that the appellant is a charitable trust duly registered u/s. 12A of the Income Tax Act, 1961 (the Act). The return of income for AY 2017-18 was filed on 01.08.2017 declaring Nil income after claiming exemption u/s. 11 of the Act. The said return of income was processed by the CPC u/s. 143(1) of
2 ITA No. 72/Coch/2025 Mount Carmel Educational Society the Act vide intimation dated 25.03.2019 denying exemption u/s. 11 and assessed the total income at Rs. 2,03,20,447/- on the ground that audit report in the prescribed Form 10B was not filed along with the return of income.
Being aggrieved, an appeal was filed before the CIT(A), contending that the adjustment made by the CPC is beyond the scope of section 143(1) of the Act and filing of audit report within the prescribed time is only directory and not mandatory. However, the CIT(A), placing reliance on several judicial precedents, without addressing this issue dismissed the appeal by holding that the power to condone the delay in filing the prescribed audit report vests with the Chief Commissioner of Income Tax, not with the appellate authority. Accordingly, he dismissed the appeal.
Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.
The learned CIT(A) contended that the CIT(A), without addressing all the contentions raised by the appellant, has merely dismissed the appeal placing reliance on the CBDT Circular No. 6/2020 dated 19.02.2020. Thus, she submits that the order passed by the CIT(A) is cryptic and the matter may be remanded back to the of the CIT(A) for de novo consideration.
3 ITA No. 72/Coch/2025 Mount Carmel Educational Society 6. On the other hand, the learned Sr. DR has no serious objection to remand the matter back to the file of the CIT(A) for de novo consideration.
We ordered accordingly with direction to the CIT(A) to pass a reasoned order by meeting all the contentions raised by the appellant trust after affording reasonable opportunity of hearing to the appellant.
In the result, the appeal filed by the assessee stands partly allowed.
Order pronounced in the open court on 26th June, 2025.
Sd/- Sd/- (PRAKASH CHAND YADAV) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER Cochin, Dated: 26th June, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order
Assistant Registrar ITAT, Cochin
