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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: HON’BLE SHRI MANU KUMAR GIRI & HON’BLE SHRI JAGADISH
आयकर अपीलीय अिधकरण ‘‘बी’’’ �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय �ी मनु कुमार िग�र, �ाियक सद� एवं माननीय �ी जगदीश, लेखा सद� के सम�। BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI JAGADISH, ACCOUNTANT MEMBER आयकरअपील सं./ & 1368/Chny/2024 (िनधा�रणवष� / Assessment Years: 2018-2019 & 2019-2020) M/s. Gowrin Charitable Trust, Vs. The Income Tax Officer, No.36/40, Lazarus Church Road, (Exemption) Mandavelipakkam, Ward 1, Rajaannamalaipuram, Chennai. Chennai 600 028. [PAN: AABTG 1312N] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri K.R. Sudersan, C.A., ��यथ� क� ओर से /Respondent by : Shri V.Justin, IRS, JCIT. सुनवाई क� तार�ख/Date of Hearing : 22.07.2024 घोषणा क� तार�ख /Date of Pronouncement : 26.07.2024 आदेश / O R D E R MANU KUMAR GIRI (Judicial Member)
These two appeals filed by the assessee are directed against the separate orders of even date 30.04.2024 of the ADDL/JCIT (A)-1, Office of the Ld. Commissioner of Income Tax, Appeal [‘CIT(A)’ in short] Jaipur for Assessment Years 2018-19 and 2019-20.
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:
’4.6 The appellant has submitted the following for justifying the said delay as under:- The Trustees of the Appellant does not have any knowledge about the Income tax Procedures and as such had entrusted the said work to a chartered Accountant on a bonafide belief that the said Chartered Accountant would take care of it. None of the Information was intimated to the Appellant and as such the Appellant was ignorant of the Notices issued, Opportunity granted and the demand raised. Even the notices also did not reach the appellant as the address was also that of the Chartered Accountant. Hence the Appellant prays that the delay be condones and the Appeal be allowed’’.
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.
Order pronounced in the open court on 26th July, 2024 at Chennai.