KINCHITKARAM TRUST,CHENNAI vs. ITO, EXEMPTIONS WARD 1, CHENNAI, CHENNAI

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ITA 1492/CHNY/2023Status: DisposedITAT Chennai19 February 2024Bench: SHRI MAHAVIR SINGH (Vice President), SHRI MANJUNATHA.G (Accountant Member)2 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the Assessing Officer (AO) had rectified the original assessment order to allow the accumulation after the delay in filing Form 10 was condoned. Therefore, the appeal filed by the assessee had become infructuous.

What were the facts?

The assessee trust claimed accumulation of income but filed Form 10 after the due date of filing the return. Consequently, the initial assessment order disallowed the accumulation and raised a demand. However, the delay in filing Form 10 was subsequently condoned by the CIT (Exemption).

What were the issues?

Whether the appeal is maintainable when the relief sought has already been granted through a rectification order.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI MAHAVIR SINGH & SHRI MANJUNATHA.G

Hearing: 19.02.2024Pronounced: 19.02.2024

PER MAHAVIR SINGH, VICE PRESIDENT:

1.

This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) in order No.ITBA/NFAC/S/250/2023-24/1057071787(1) dated 16.10.2023. The assessment order was framed by the Income Tax Officer, Exemptions Ward 1, Chennai for the assessment year 2016-17 u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 24.12.2018.

2.

At the outset, the ld.counsel for the assessee stated that the AO has already rectified and allowed accumulation in view of filing of Form

2 No.10. The ld.counsel filed copy of rectification order dated 04.12.2020 passed u/s. 154 r.w.s. 143(3) of the Act. The relevant reads as under:- “The assessee Trust filed return of income on 23-02-2017 for the A.Y 2016-17 along with the Form 10 for accumulation of Rs.1,29,95,574/- filed on 31-03- 2018. Since the Form 10 was filed after date of filing of the return of income, the claim for accumulation was not given and a demand of Rs.52,04,752/- was raised during the time of completion of 143(3) on 24-12-2018. The Assessee has filed condonation for Form 10 and the CIT (Exemption) had condoned the delay in filing of Form 10 for accumulation of Rs.1,29,95,574/- on 12-11-2020. Since the Form 10 filed is condoned, the order U/s 143(3) dated 24-12-2018 is revised and order U/s 154 is passed accordingly.”

2.1 The ld.counsel for the assessee stated that as the assessee has already been allowed relief, the appeal filed by the assessee has become practically infructuous and hence, can be dismissed as infructuous. The ld.Senior Departmental Representative has not objected to the same. In term of the above, the appeal is dismissed as infructuous.

3.

In the result, the appeal filed by the assessee is dismissed as infructuous.

Order pronounced in the open court at the time of hearing on 19th February, 2024 at Chennai.

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