GOWRIN CHARITABLE TRUST,CHENNAI vs. ITO EXEMPTIONS WARD 1, CHENNAI

Assessee is a charitable trust registered under section 12A of the Income Tax Act, 1961 (‘Act’ in short) vide registration dated 17.10.2007 and claiming exemption u/s 11 of the Act. The assessee filed its return of income electronically on 11.08.2018 for AY 2018-19 and on 19.11.2019 for AY 2019-20.

The above said both the return of income were processed under section 143(1) wherein CPC issued a communications proposing to make adjustments u/s 143(1)(a) of the Act in both AYs.

Further, the appellant filed the appeals before the ld.CIT(A) with a delay of 36 months against the intimation orders passed by the ADIT, CPC, Bengaluru under section 143(1) of the Act dated 18.03.2020 for AY 2018-19 and 04.06.2020 for AY 2019-20. The Ld. CIT(A) has dismissed both the appeals on account of delay in filing the appeals as per section 249(3) of the Act. Now, assessee is in further appeal before us.

At the outset, Ld.AR for the appellant submitted that Ld. CIT(A) has not appreciated the reasons given for delay in filing appeals and prayed that delay in filing the appeals be condoned and appeal be heard on merits after affording an adequate opportunity of hearing to the appellant. The Ld.DR-JCIT has not objected to the prayer of the assessee.

We have heard the both parties and perused the impugned order. Assessee before the ld.CIT(A) has given the following reasons for the delay in filing appeals:

We have gone through the reasons for delay in filing appeal. The delay of filing appeals was on account of the failure of the Chartered Accountant who was entrusted to inform time to time information and compliance etc.. Whatever may be the reasons, there was no negligence on the part of the assessee. Since assessee is not an individual but a Charitable Trust doing charitable activity of providing educational and medical services for special and autism affected children with special needs hence we condone the delay of 22 months (excluding Covid-19 period as directed by Hon’ble Supreme Court of India) and treat the reasons as sufficient cause in delay in filing both the appeals. Negligence of Chartered Accountant cannot be reason to penalize the assessee. Accordingly, the impugned orders are set aside and the appeals are restored back to the file of Ld. CIT(A) for adjudication on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the disposal of the appeal on merits.

In the result, appeals filed by the assessee are allowed for statistical purpose.