HEVAEN JOURNEY MINISTRIES TRUST,CHENNAI vs. ASSESSING OFFICER, EXEMPTION WARD-4, CHENNAI

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ITA 2173/CHNY/2024Status: DisposedITAT Chennai27 December 2024AY 2022-23Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI JAGADISH (Accountant Member)1 pages
AI SummaryAllowed for statistical purposes

What did the Tribunal hold?

The Tribunal held that the CIT(A) was not justified in dismissing the appeal without awaiting the decision on the condonation petition. The assessee's inability to file the return on time due to the Managing Trustee's death and the pending condonation petition warrant consideration.

What were the facts?

The assessee, a Trust, filed its income tax return for AY 2022-23 beyond the due date, leading to the disallowance of a claim under Section 11 of the Act by the CPC, Bengaluru. The CIT(A) confirmed this order. The delay in filing was attributed to the death of the Managing Trustee, and a condonation petition was filed.

What were the issues?

Whether the CIT(A) was correct in confirming the disallowance of Section 11 claim without deciding the condonation of delay petition filed due to the death of the Managing Trustee.

Which sections of the Income-tax Act were involved?

Section 11,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI JAGADISH

Hearing: 21.11.2024Pronounced: 27.12.2024

आदेश / O R D E R

PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2022-23 arises out of the order of Learned Commissioner of Income Tax, Addl/JCIT(A)-1, Nagpur [hereinafter “CIT(A)”] dated 05.08.2024 vide intimation u/s. 143(1) of the Income-tax Act, 1961 (hereinafter “the Act”) issued by CPC, Bengaluru dated 03.03.2023.

2.

The only effective ground of appeal in this appeal of assessee is against the order of Ld. CIT(A) in confirming the order of CPC, Bengaluru disallowing the claim u/s.11 of the Act on the ground that the assessee has not filed return within prescribed time.

1.

1. 3. The assessee is a Trust and filed its return of income on 27.12.2022, which is beyond the prescribed due date i.e., on 07.11.2022. The CPC, Bengaluru while processing the return has not allowed the claim u/s. 11 of the Act as the assessee has not filed return of income within due date. On appeal, the Ld. CIT(A) has confirmed the order of CPC, Bengaluru as the assessee has not filed return within prescribed time.

4.

The Ld. Authorized Representative (A.R) of the assessee has submitted that the main reason for not filing return within prescribed time was due to the death of Managing Trustee and the assessee has filed condonation petition as per CBDT Circular No.10/2019 dated 22.05.2019 for considering condonation of delay in filing the return.

The Ld. AR therefore prayed that order of Ld. CIT(A) be set aside and he may be directed to decide the appeal after considering the petition for condonation of delay.

5.

The Ld. Departmental Representative (DR), supported the orders of lower authorities.

6.

We have heard the rival submissions, and perused the materials available on record. The exemption u/s. 11 of the Act has been denied by the CPC, Bengaluru vide intimation notice u/s. 143(1) of the Act on the ground that the assessee has not filed return within prescribed time. The assessee has filed a petition before CIT to condone the delay in view of the CBDT Circular No.10 of 2019 dated 22.05.2019 which is pending therefore Ld CIT(A) was not justified to dismiss appeal without awaiting the condonation petition. We find that assessee is a Trust and it could not file return of income within the due date due to the death of the managing trustee. The assessee has filled condonation petition, which is pending. In view of above, we remand the matter back to the file of Ld. CIT(A) for deciding the appeal after the petition for condonation of delay in filling the return is decided.

Thus, the appeal filed by the assessee is allowed for statistical purposes only.

7.

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

Order pronounced on 27th December, 2024.

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