SHRI BALAJI INTERNATIONAL SCHOOL,MUMBAI vs. AO EXEM WD 2(3) , MMTNL BUILDING , PEDDAR ROAD , MUMBAI

The assessee has filed appeal before the First Appellate Authority against the intimation passed by the CPC u/s 143(1) of the Act on 24.12.2021 for denial of exemption claimed by the assessee. The ld. CIT(A) has dismissed the appeal filed by the assessee on the ground that the appeal was not filed within the prescribed time limit as provided u/s 249(3) of the I.T. Act, 1961.

Heard both the sides and perused the material on record. Without reiterating the fact as discussed (supra) in this order, the CPC has passed order u/s 143(1) of the Act on 24.12.2021 whereas the assessee had filed appeal before the ld. CIT(A) against the aforesaid order on 01.09.2023 which was beyond the statutory time limit prescribed for filling of the appeal. As per section 249(2)(c), the appeal shall be presented within 30 days of the following date on which the intimation of the order sought to be appealed is served.

There was delay of more than one year and seven months for filing the appeal before the ld. CIT(A). During the course of appellate proceedings, the learned counsel submitted that assessee had not filed audit report within the prescribed time limit, therefore, exemption u/s 11 of the Act was not allowed and the entire gross collection was taxed without providing deduction of expenses such as salary expenses, electricity expenses etc.

The ld. Counsel further submitted that in the case of assessee, the rectification filed against the order passed by the CPC u/s 143(1) of the Act. was not carried out and the grievance of the assessee was disposed of only on 30.08.2023 vide grievance acknowledgement no. 13077929 as placed along with the appeal paper.

Since rectification was not carried out therefore after disposing the grievance application of the assessee on 30.08.2023, the assessee has immediately filed the appeal before the ld. CIT(A).

Considering the aforesaid submission of the assessee, it appears that there is a sufficient reason for not filling the appeal before the ld. CIT(A) within the prescribed time limit since the grievance application of the assessee was disposed of only on 30.08.2023. Therefore, we consider that ld. CIT(A) is not justified in dismissing the appeal of the assessee without condoning the delay in filing the impugned appeal.

Considering the above facts and circumstances, we condone the delay in filing the appeal before the ld. CIT(A) and restore this appeal to the file of the First Appellate Authority for deciding it on merit as contemplated u/s 250(6) of the Act after affording adequate opportunity to the assessee. Accordingly, the appeal of the assessee is allowed for statistical purposes.

In the result, appeal of the assessee is allowed for statistical purposes.