RAMANUJA PEETHAM,VISAKHAPATNAM vs. INCOME TAX OFFICER (EXEMPTION WARD), VISAKHAPATNAM

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ITA 198/VIZ/2023Status: DisposedITAT Visakhapatnam18 October 2023AY 2016-17Bench: SHRI DUVVURU RL REDDY, HON’BLE (Judicial Member)4 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal permitted the assessee to withdraw the appeal as the delay in filing Form 10B was condoned and the exemption under Section 11 was granted. The grievance of the assessee was redressed.

What were the facts?

The assessee, a trust registered under Section 12A, claimed exemption under Section 11. The exemption was initially disallowed for not filing the audit report in Form 10B with the return. The assessee later filed the report after the due date, and the delay was subsequently condoned.

What were the issues?

Whether the exemption under Section 11 can be allowed when the audit report in Form 10B was filed after the due date. Whether the appeal becomes infructuous if the delay is condoned and exemption is granted subsequently.

Which sections of the Income-tax Act were involved?

Section 11,Section 12A,Section 143(1),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM “SMC” BENCH, VISAKHAPATNAM

Before: SHRI DUVVURU RL REDDY, HON’BLE

Hearing: 27.09.2023

O R D E R

Per Shri Duvvuru RL Reddy, Judicial Member :

1.

This appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeal) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No.ITBA/NFAC/S/250/2023- 24/1052984661(1) dated 19.05.2023 for the Assessment Year (A.Y.)2016-17.

2.

Brief facts of the case are that the assessee is a Trust, registered u/s 12A of the Income Tax Act, 1961 (in short ‘Act’) had filed return of income for the A.Y.2016-17 on 09.09.2016, declaring Nil income after

Sri Ramanuja Peetham, Visakhapatnam claiming exemption of Rs.26,04,167/- u/s 11 of the Act. The return was processed u/s 143(1) of the Act vide intimation dated 17.05.2017, wherein, exemption was disallowed for the reason that the assessee has not filed Audit Report in Form 10B along with the return. Later on the assessee filed audit report in Form 10B on 13.10.2017, but since the audit report was filed after filing the return of income, CPC disallowed the exemption of Rs.26,04,167/- claimed while processing the return u/s 143(1) since the assessee was not found eligible for exemption u/s 11.

3.

The assessee filed an application for condonation of delay before DIT(Exemption), Hyderabad and preferred an appeal before CIT(A). Since the assessee has already filed an application for condonation of delay before the DIT(Exemptions), Hyderabad and since the delay is under consideration, the Ld.CIT(A) allowed the assessee’s appeal for statistical purpose, directing the AO to give appeal effect on the basis of the outcome of order of CIT(E), Hyderabad.

4.

On being aggrieved, the assessee preferred an appeal before the Tribunal and subsequent to filing of the appeal, the Ld.CIT(Exemptions) vide order dated 22.08.2023 condoned the delay in filing the Form No.10B. Consequently, the Income Tax Officer (Exemptions Ward),

Sri Ramanuja Peetham, Visakhapatnam Visakhapatnam passed an order u/s 154 r.w.s. 143(1) of the Income Tax Act, 1961 on 21.09.2023 by allowing the exemption claimed u/s 11 of the Act. Therefore, the assessee filed a petition before the Tribunal, submitting that since the delay in filing Form No.10B was condoned and exemption u/s 11 was granted, the grievance of the assessee stood redressed and the appeal becomes infructuous. The assessee prayed for withdrawal of the appeal for which the Ld.DR has not raised any objection.

5.

I have heard both the parties and perused the material available on record. I find that the delay in filing the Form No.10B was condoned by the Ld.CIT(Exemptions), the exemption claimed u/s 11 was granted and rectification order dated 21.09.2023 to that effect was passed by the Exemption Ward, Visakhapatnam. Now, since the grievance of the assessee is redressed, the assessee pleaded for withdrawal of the appeal. Therefore, I have no hesitation to permit the assessee for withdrawal of the appeal.

6.

In the result, appeal of the assessee is dismissed as withdrawn.

Sri Ramanuja Peetham, Visakhapatnam Order pronounced in the open court on 18th October, 2023.

Sd/- (दुव्वूरु आर.एल रेड्डी) (DUVVURU RL REDDY) न्याधयक सदस्य/JUDICIAL MEMBER Dated : 18.10.2023 L.Rama, SPS आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee – Sri Ramanuja Peetham, D.No.1-104-15, Plot No.40, Sector-5, TTD Kalyanamandapam Road, MVP Colony, Visakhapatnam 2. रधजस्व/The Revenue –The Income Tax Officer (Exemption Ward), Income Tax Office, Infinity Tower, Shankaramatham Road, Santhipuram, Visakhapatnam 3. The Commissioner of Income Tax (Exemption), Hyderabad 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER

Sr. Private Secretary ITAT, Visakhapatnam

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