PASUMPON THEVAR EDUCATIONAL CHARITABLE TRUST,THOOTHUKUDI, CHENNAI vs. ITO, EXEMPTION WARD TIRUNELVELI, TIRUNELVELI

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ITA 1543/CHNY/2023Status: DisposedITAT Chennai12 March 2024AY 2021-22Bench: HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the assessment to the AO for fresh adjudication. The outcome of the assessee's application for condonation of delay before the CBDT under Section 119(2) will be crucial. If rejected, income will be computed as per general provisions for an AOP.

What were the facts?

The assessee, a registered trust, claimed deduction under Section 11/12 for AY 2021-22. However, the CPC denied this as the trust failed to re-register under Section 12AB. The assessee also filed its return of income late.

What were the issues?

Whether the assessee is eligible for deduction under Section 11/12 without re-registration under Section 12AB, and the implications of a delayed return filing.

Which sections of the Income-tax Act were involved?

Section 11,Section 12,Section 12AB,Section 119(2),Section 143(1),Section 139(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHENNAI

Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आयकर अपीलीय अिधकरण “बी” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय �ी महावीर िसंह, उपा ! एवं माननीय �ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ (िनधा*रणवष* / Assessment Year: 2021-22) Pasumpon Thevar Educational ITO Charitable Trust Exemption Ward, बनाम/ Vs. 22, Sethu Palace, Kovilpatti Tirunelveli Thoothukudi Dist -628 502. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AACTP-7987-R (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri N. Arjun Raj (CA) for Shri S. Sridhar (Advocate)- Ld. ARs � थ�कीओरसे/Respondent by : Shri D. Hema Bhupal (JCIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 12-03-2024 घोषणा की तारीख /Date of Pronouncement : 12-03-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2021-22 arises out of an order passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 26-09-2023 in the matter of an intimation issued by CPC, Bengaluru u/s.143(1) of the Act on 23-08-2022. The registry has noted delay of 27 days in the appeal, the condonation of which has been sought by Ld. AR. Considering the period of delay, the delay is condoned and the appeal is admitted for adjudication on merits.

2.

In the return of income, the assessee claimed deduction u/s 11 / 12 as applicable to a registered trust. However, the same has been denied by CPC on the ground that the assessee failed to re-register u/s 12AB as applicable from 01-06-2020. Further, the extended due date of return u/s 139(1) was 15-03-2022 while the assessee filed return of income with a delay of 15 days i.e., on 31-03-2022. The Ld. CIT(A) confirmed the action of CPC against which the assessee is in further appeal before us. 3. The Ld. AR submitted that the assessee has preferred an application seeking condonation of delay u/s 119(2) before CBDT which is pending for disposal. The Ld. AR, in the alternative, drew attention to the income and expenditure account of the assessee as kept on page no.38 of the paper-book to submit that that the expenditure is in excess of income and therefore, even if the assessee was to be assessed as Association of Person (AOP), its income was to be computed as per general principles. The Ld. Sr. DR has submitted that the assessee do not have valid registration for this year. 4. Considering the application of the assessee u/s 119(2) as well as the alternative argument of Ld. AR, we restore the assessment back to the file of Ld. AO for fresh adjudication with a direction to the assessee to substantiate its case. The outcome of application u/s 119(2) shall have material bearing on the case of the assessee provided the assessee has valid registration for this year. In case of rejection of application or in case the assessee does not hold valid registration for this year, its income shall be computed as per general provisions as applicable to AOP. We order so.

5.

The appeal stand allowed for statistical purposes. Order pronounced in open court on 12th March, 2024. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा34 / VICE PRESIDENT लेखा सद6 / ACCOUNTANT MEMBER चे8ई Chennai; िदनांक Dated : 12-03-2024 DS आदेशकीDितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु@/CIT 4. िवभागीय�ितिनिध/DR 5. गाडEफाईल/GF

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