ST. MARYS MATRICULATION HR.SEC. SCHOOL,CUDDALORE vs. ITO, EXEMPTION WARD-2, CHENNAI

This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter in short "the Ld.CIT(A)”), Delhi, dated 15.06.2023 for the Assessment Year (hereinafter in short "AY”) 2012-13.

There is a delay of more than ‘282’ days in filing of the appeal before the Tribunal. The assessee has filed an affidavit, which is signed by the Secretary/Managing Trustee of the Educational Institute. On perusal of the same reveals that the assessee is imparting education in the districts of Cuddalore since 1973 and filed return of income for AY 2012-13 on 18.09.2012 admitting an income of Rs.NIL, since it was a public Charitable Trust and claimed exemption u/s.11 of the Income Tax Act, 1961 (hereinafter in short "the Act”). Later, the return was selected for scrutiny and the AO framed the assessment determining the income at Rs.1,01,06,776/- by order dated 30.03.2015. The assessee immediately filed appeal before the Ld.CIT(A) which appeal was transferred to the National Faceless Assessment Centre (NFAC) and the notices were issued to the e-mail of the Ld.AR, Mr.Daniel Selvaraj, CA, who was not well-versed with the electronic devices and was not aware of issuance of notices which resulted in the Ld.CIT(A)/NFAC passing an ex parte order dated 15.06.2023; and since, the Ld.AR was in the dark about the disposal off the appeal and came to know about the impugned order only in May, 2024, the assessee immediately thereafter, filed the appeal on 18.05.2024 before this Tribunal which resulted in delay of ‘282’ days; and therefore, pleaded for condoning the delay. In this regard, we note that in this case, there was a change in the appellate proceedings from the physical mode to virtual/faceless regime, and the Ld.AR of the assessee was not well-versed with the computers/internet, and since he was not aware of the proceedings going on against the assessee before NFAC [listing and calling for details by the Ld.CIT(A)] which ultimately resulted in the Ld.CIT(A) passing the impugned ex parte order. In such a scenario and after perusal of the contents of the Affidavit, we are of the opinion that due to the omission on the part of the Ld.AR of the assessee, the assessee should not be penalized. And since, there was sufficient cause which expression according to us, should be given liberal construction so as to advance the cause of justice, we condone the delay and proceed to adjudicate the grounds of appeal on merits.