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Facts
The assessee, a charitable society, appealed an intimation under Section 143(1) that denied a deduction under Section 10(23C)(v) and treated gross receipts as income. The first appeal before the CIT(A) was dismissed due to a 180-day delay in filing, which the assessee attributed to a procedural error in ITR-7.
Held
The Tribunal, acknowledging the assessee's charitable status and potential for exempt income, held that the first appeal should have been admitted. It directed the CIT(A) to condone the delay, admit the appeal, and adjudicate the case on its merits.
Key Issues
Whether the CIT(A) should have condoned the delay and admitted the appeal of a charitable society seeking exemption, despite a procedural error in filing.
Sections Cited
Section 143(1), Section 10(23C)(v)
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Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM
(िनधा�रण वष� / Assessment Year: 2018-19) Shmashan Sewa Samiti ITO - Ward 1(1) बनाम/ Vs. Outside Chatiwind Gate, New CR Building Amritsar-143001 Amritsar. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AASAS-5377-D (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/Appellant by : Shri Rohit Kapoor Advocate a/w Shri V.S. Aggarwal (ITP) –Ld. ARs ��थ�कीओरसे/Respondent by : Sh. Charan Dass (Addl. CIT) – Ld. Sr DR सुनवाईकीतारीख/Date of Hearing : 07-08-2025 घोषणाकीतारीख /Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of an order of Ld. Addl. / Joint Commissioner of Income Tax (Appeals), Mumbai [CIT(A)] dated 29-08-2024 in the matter of an intimation issued by CPC u/s 143(1) dated 12-03-2020. The registry has noted delay of 5 days in the appeal which stands condoned.
It emerges that the assessee is a charitable society. The CPC considered entire gross receipts as the income of the assessee denying deduction claimed by the assessee u/s 10(23C)(v). The said error apparently occurred due to the fact that the assessee failed to check the relevant clause in the drop down list in ITR-7. Upon further appeal, Ld. CIT(A) did not admit the appeal for want of condonation of delay of 180 days against which the assessee is in further appeal before us.
Considering the fact that the assessee is a charitable trust and its income would be exempt, the first appeal ought to have been admitted. Nevertheless, we direct Ld. CIT(A) to admit the appeal and adjudicate the grievance of the assessee on merits with a direction to the assessee to plead and prove its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.
Sd/- Sd/- (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18-08-2025 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR
ITAT AMRITSAR