ACADEMY OF SCIENTIFIC AND INNOVATIVE RESEARCH,GHAZIABAD vs. INCOME TAX OFFICER, EXEMPTION WARD 4, CHENNAI
Facts
The assessee preferred appeals against the order of CIT(A) confirming AO's action of denying exemption u/s 11 & 12 of the Income Tax Act due to non-filing of Form 10 before the due date. The assessee had pending applications for condoning the delay in filing Form 10 and Form 10B with the CIT(E).
Held
The Tribunal set aside the orders of CIT(A) and restored the appeals to the file of CIT(A). The CIT(A) was directed to await the outcome of the condonation application pending before CIT(E) and then re-adjudicate the appeal.
Key Issues
Whether the CIT(A) was justified in confirming the denial of exemption without awaiting the outcome of the delay condonation applications pending before the CIT(E).
Sections Cited
11, 12, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, A BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
PER ABY T. VARKEY, JM: These are appeals preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter in short "the Ld.CIT(A)”), Delhi, both dated 12.09.2023 for the Assessment Year (hereinafter in short "AY") 2015-16 & 2017-18. 2. At the outset, the Ld.AR brought to our notice that by passing the impugned order dated 12.09.2023, the Ld.CIT(A) has confirmed the action of the AO u/s.143(3) of the Income Tax Act, 1961 (hereinafter in short 'the Act') thereby denying the exemption claimed u/s.11 & 12 of the Act because the assessee didn't file the relevant Form 10 before the due date of filing the Return of Income (ROI) [i.e. to avail accumulation of income for AY 2015-16 & for AY 2017-18; and the non-filing of Form 10B (Audit Report) along with RoI for AY 2017-18]. It was also brought to our notice that assessee has preferred applications for condoning delay in filing of Form 10 & 10B in both AYs before the Ld.CIT(E). Further, it was brought to our notice that for AY 2017-18, the Ld.CIT(E) who is the competent authority to condone the delay in filing of Form 10B (Audit Report) has condoned the delay by order dated 25.08.2020 [refer Page Nos.1-2 of the Paper Book for AY 2017-18]. However, condonation of delay in filing Form 10 dated 16.08.2019 [refer Page No.3-4 of the Paper Book] as well as application for condonation of delay in Form 10 dated 20.10.2017 for AY 2015-16 [refer Page Nos. 1-2 of the Paper Book for AY 2015-16] is still pending for condonation before the Ld.CIT(E). Moreover, it was brought to our notice that the aforesaid facts especially the fact that assessee's applications for condoning the delay (supra) was pending before the Ld.CIT(E), still the Ld.CIT(A) has confirmed the action of the AO denying the exemption. We don't countenance such an impugned action of the Ld.CIT(A) since we note that the assessee has filed application seeking condonation of delay before the competent authority [i.e. the Ld.CIT(E)], and since the outcome of the same would have direct bearing on the claim of the assessee, for the interest of justice and fair play, we set aside the impugned orders of the Ld.CIT(A) and restore the appeals back to the file of the Ld.CIT(A) and direct him to await the outcome of the condonation application pending before the Ld.CIT(E) and re-adjudicate the appeal on the basis of the outcome of the same. For such an action, we rely on the decision of the co-ordinate Bench of this Tribunal in ITA No.1093/Chny/2024 for AY 2018-19 in the assessee's own case order dated 04.09.2024, wherein on similar circumstances, identical decision has been taken. Needless to say that the assessee to follow up with the office of the Ld.CIT(E) and convey the outcome to the Ld.CIT(A) regarding its applications for condoning the delay (supra) and file relevant documents/written submissions if advised to support its grounds of appeal before Ld CIT(A); and thereafter, the Ld.CIT(A) to decide the grounds of appeal in accordance to law.
In the result, appeals filed by the assessee are allowed for statistical purposes. Order pronounced on the 31st day of December, 2024, in Chennai. (जगदीश) (एबी टी. वर्की) (ABY T. VARKEY) न्यायिक सदस्य/JUDICIAL MEMBER चेन्नई/Chennai, दिनांक/Dated: 31st December, 2024. TLN, Sr.PS आदेश की प्रतिलिपि अग्रेषित/Copy to: 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT, Chennai / Madurai / Salem / Coimbatore. 4. विभागीयप्रतिनिधि/DR 5. गार्डफाईल/GF