SHREYA CANCER FOUNDATION,VISAKHAPATNAM vs. THE ITO, WARD-1(1),, VISAKHAPATNAM

1. This appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeals) [CIT(A)], Chennai in DIN & Order No. ITBA/APL/S/250/2023-24/1057230787(1) dated 19.10.2023, arising out of order passed u/s 143(1) of the Income Tax Act, 1961 (in short ‘Act’) dated 21.05.2019 for the Assessment Year (A.Y.) 2018-19.

Brief facts of the case are that the assessee is a registered Trust u/s 12A of the Act on 11.02.2014. The Trust has been filing returns of income since inception by claiming exemption u/s 11 of the Act. For the Shreya Cancer Foundation, Vsakhapatnam impugned A.Y.2018-19, the assessee Trust filed the return of income on 31.07.2018, claiming exemption of its income u/s 11 of the Act. The return of income was processed u/s 143(1), wherein, without assigning any reasons, the entire gross income has been subjected to tax, resulting in a tax demand of Rs.2,03,285/-. The assessee preferred an appeal before the CIT(A) and the Ld.CIT(A) dismissed the appeal filed by the assessee on the ground that the assessee filed Form 10B beyond the time limits specified u/s 139(1) of the Act and the remedy to the tax payer is only to approach the jurisdictional Commissioner of Income Tax to condone the delay in filing Form 10B.

Aggrieved, the assessee preferred further appeal before the Tribunal by raising the following grounds of appeal :

The under the facts and circumstances of the case the order processed under section 143(1) of the IT Act and the consequential order passed under section 250 of the IT Act is not valid in the eyes of law.

For these and other reasons that are to be urged at the time of hearing of the case the orders passed under section 250 of the IT Act are liable to be quashed and assessee society deserves to be allowed the claim of benefit under section11 and 12 of the IT Act. 4. At the outset, the Ld.AR has submitted that the assessee filed Form 10B within the time limit prescribed u/s 139(1) of the Act. The time limit prescribed for the A.Y.2018-19 was 31.07.2018. He further submitted that copy of acknowledgement was filed in the paper book, which shows that the assessee has filed Form 10B within the stipulated time limit i.e. on 31.07.2018. Therefore, he pleaded to set aside the orders passed by the revenue authorities and allow the appeal of the assessee.

Per contra, the Ld.DR relied on the order passed by the Ld.CIT(A), pleaded to uphold the order of the Ld.CIT(A) and dismiss the appeal of the assessee.

I have heard both the parties and perused the material available on record. On verification of the acknowledgement filed by the assessee, it is clear that the assessee filed Form 10B on 31.07.2018 i.e. on the last day of due date of filing of Form 10B. But the revenue authorities have not at all considered the filing of Form10B and erroneously denied the exemption Shreya Cancer Foundation, Vsakhapatnam claimed by the assessee u/s 11 of the Act. It is also undisputed fact that the assessee is a registered Trust u/s 12A of the Act. Therefore, I set aside the orders passed by the revenue authorities and direct the AO to allow the exemption claimed by the assessee u/s 11 of the Act, after verification of the claim. Accordingly, the grounds raised by the assessee are allowed.

In the result, appeal of the assessee is allowed.