GAYATRI SHIKSHA NYAS,AGRA vs. ITO (EXEMPTION), AGRA, AGRA

Brief facts of the case are, the assessee filed its return of income on 31.10.2017, the return was process u/s 143(1) of the Act, 1961 (for short ‘Act’) while processing return u/s 143(1) of the Act came up CPC treated the voluntary contributions received by the assessee as income u/s 11(1)(d) of the Act and brought to tax.

Aggrieved with the above order, the assessee filed a rectification application u/s 154 of the Act which was rejected by the CPC with the observations that it is not a mistake apparent from record.

Aggrieved with the above order, the assessee preferred an appeal before ld. CIT(Appeals) on 05.12.2024. The appeal filed by the assessee with a huge delay of 2350 days delay and ld. CIT(Appeals) observed that the assessee has not justified such delay by submitting sufficient cause in the reasons submitted by the assessee and the assessee merely believed that the issue under consideration may be resolved u/s 154 of the Act itself. Since it was not rectified, the assessee had filed this appeal. He further, observed that the issue under consideration is whether exemption the claimed u/s 11(1)(d) of the Act or section 10(23C)(iiiad) of the Act. Therefore, it is not a mistake apparent from record and not convinced with the submission, he rejected the condonation of delay application filed by the assessee, accordingly, he dismissed the appeal. 3 | P a g e

Similarly, in the next assessment year also similar issue raised by the assessee with the delay of 2280 days. Accordingly, ld. CIT(Appeals) has not condoned the delay and accordingly, dismissed the appeal.

Aggrieved with the above order, the assessee is in appeal before us.

At the time of hearing, ld. AR of the assessee brought to our notice that the appeal filed by the assessee before ld. ITAT with a delay of 10 days. He prayed the same may be condoned.

With regard to substantial delay before ld. CIT(Appeals), he submitted that the assessee has filed condonation of delay before ld. CIT(Appeals) and submitted that the reason for delay is the assessee was not aware rejection of claim by the CPC and assessee came to know of the same when there is a demand pending against the assessee and further submitted that the delay is not intentional and the issue is not considered whether the assessee is eligible to claim the exemption u/s 10(23C)(iiiad) of the Act, Because the donation received by the assessee is less than 1 crore and the assessee is in the charitable activity imparting education. He submitted that the condonation was not accepted by the ld.CIT(A) and also not decided the issue on merit.

On the other hand, ld. DR brought to our notice that there is substantial delay in filing the above appeal before ld. CIT(Appeals) and the assessee has not substantiated sufficient cause of such delay. He supported the finding of ld. CIT(Appeals)

Considered rival submissions and material placed on record. We observed that the assessee is a trust and running education centre. During the year under consideration, the assessee has received voluntary contributions of Rs. 29,44,000/- for process u/s 143(1) of the Act, CPC treated the same as voluntary donation u/s 11(1)(d) of the Act. The assessee filed rectification application against the above said order, however, the same was rejected. The assessee did not file an appeal before First Appellate Authority on time with the understanding that the above mistake will be rectified u/s 154 of the Act. However, the assessee was not aware of fact that the same was rejected. Hence, the appeal before ld. CIT(Appeals) was filed with substantial delay of 2350 days.

Considering that fact that the assessee is in the charitable activity towards imparting education and being small trust running the charitable trust, in our considered view, for the sake of substantial justice, the assessee should be given one more opportunity. Accordingly, we condoned the delay in filing the appeal before ld. CIT(Appeals) and also 5 | P a g e before us with delay of 10 days. Accordingly, the matter under consideration are remitted back to the file of ld. CIT(Appeals) to adjudicate the issue on merit. At the same time, we direct ld. CIT(Appeals) to give proper opportunity being heard to the assessee to file the relevant document if required before First Appellate Authority.

The assessee also directed to appear before ld. CIT(Appeals) without taking any adjournment to the facts in Assessment Year 2016-17, the findings in A.Y 2016-17 are applicable mutatis mutandis. Thus, both the appeals preferred by the assessee are allowed for statistical purposes.

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