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Facts
The assessee, Smt. Hiraben Dhamji Valji Velani Foundation, challenged the CIT(A)'s dismissal of its appeal against an intimation order under Section 143(1) for AY 2020-21. The exemption claimed under Section 11 was denied due to the belated filing of Form 10B, which the assessee attributed to an inadvertent mistake by its accountant. Subsequently, the delay in filing Form 10B for AY 2020-21 was condoned by the CIT (Exemptions) Mumbai on 26/02/2024, a fact which the CIT(A) failed to consider.
Held
The Tribunal found that the assessee had a reasonable cause for the delay in filing the appeal before the CIT(A), rendering the CIT(A)'s dismissal as time-barred incorrect. Since the delay in filing Form 10B was condoned by the competent authority, the ground for denying exemption under Section 11 no longer survived. Therefore, the CIT(A)'s order was set aside, and the Assessing Officer was directed to grant the exemption of INR 8,21,871/-.
Key Issues
Whether the CIT(A) erred in dismissing the appeal as time-barred and failing to condone the delay, and whether the exemption under Section 11 should be allowed given the condonation of delay in filing Form 10B.
Sections Cited
Section 143(1), Section 246A, Section 11, Section 143(1)(a), Section 119(2)(b)
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Income Tax Appellate Tribunal, K (SMC
Per Rahul Chaudhary, Judicial Member:
By way of the present appeal the Assessee has challenged the order dated 29/04/2024, passed by the Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-4 Delhi, [hereinafter referred to as the `CIT(A)'] whereby the Ld. CIT(A) had dismissed the appeal against Intimation Order, dated 30/11/2021, passed under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as `the Act').
The appellant has raised following grounds of appeal :
“1. On the facts and in the circumstances of the case and in law, the learned ADDL/JCIT(A)-4, Delhi, erred in dismissing the appeal filed under section 246A. 2. 3. 4. On the facts and in the circumstances of the case and in law, the learned ADDL/JCIT(A)-4, Delhi, erred in dismissing the appeal filed under section 246A, without taking cognizance of the order of the CIT(Exemption), Mumbai, dated 26/02/2024 (condoning the delay in filing of Form 10B for assessment year 2020-21), furnished by the assessee vide E-filing Ack No.164321051020424 on 02/04/2024. On the facts and in the circumstances of the case and in law, the learned ADDL/JCIT(A)-4, Delhi erred in not condoning the delay in filing of appeal and dismissing the appeal filed under section 246A. On the facts and in the circumstances of the case and in law, the learned ADDL/JCIT(A)-4, Delhi erred in upholding the intimation assessment year 2020-21 issued under section 143(1)