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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : Condonation of Delay : This appeal is filed by the assessee against the order of Commissioner of Income Tax (Exemptions), Hyderabad in F.No.CIT(E)/Hyd/10(23C)/77/2018-19 dated 12.09.2019 with the delay of 232 days. The assessee filed petition for condonation of delay, submitting that the order was received on 25.09.2019 and the appeal
De-Paul Educational Society, West Godavari ought to have been filed on or before 24.11.2019, but filed with the delay of 234 days on 03.07.2020. The Ld.AR submitted that due to illness of the Director of the assessee Society, the assessee was unable to file the appeal within time. The Ld.AR further submitted that the assessee produced medical certificate. Considering the medical certificate, we are of the view that the assessee established a reasonable cause to condone the dely. Therefore, we condone the delay of 232 days and proceed to hear the case on merits.
Brief facts of the case are that the assessee is a society registered under Societies Registration Act XXI of 1860 with Reg. No.215/1994. The assessee is engaged in imparting education as covered u/s 2(15) of the Income Tax Act, 1961 (in short Act) as charitable activities. The assessee had filed an application seeking approval u/s 10(23C)(vi) of the Act in Form No.56D before the Ld.CIT(E) on 30.09.2018. However, the Ld.CIT(E) rejected the aforesaid application and passed an order dated 12.09.2019 stating that the aims and objects of the society are not solely for educational purposes, which makes amply clear that the intention of the society is not solely and exclusively for the purpose of education. The Ld.CIT(E) further held that since the assessee’s objects include charitable, religious and general objects apart from educational objects, the society
De-Paul Educational Society, West Godavari is not eligible for approval u/s 10(23C)(vi) of the Act. The Ld.CIT(E) further held that on perusal of the financial statements of the assessee society, it is noticed that for the A.Y.2016-17 and 2017-18, the assessee has net surplus of Rs.9,87,292/- and Rs.8,38,0989/- respectively, but the assessee has not filed the returns of income and thus, violated the provisions of section 139 of the Act. The Ld.CIT(E) further held that any entity which is violating the provisions of sec.139(4C)(e) of the Act is not eligible for approval u/s 10(23C)(vi) of the Act.
Aggrieved by the order of the Ld.CIT(E) the assessee is in appeal before us. At the outset, the Ld.AR submitted that the Ld.CIT(E) has not given any opportunity to establish it’s case and pleaded for one more opportunity of being heard.
On this aspect, the Ld.DR also has not raised any objection to remit the matter back to the file of the Ld.CIT(E).
We, therefore, remit the matter back to the file of the Ld.CIT(E) to examine this issue after giving opportunity of being heard to the assessee and pass appropriate order. We also direct the assessee to cooperate with the Ld.CIT(E) and furnish all necessary documents before him.
De-Paul Educational Society, West Godavari
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 16th February, 2023.
Sd/- Sd/- (एस बालाकृष्णन) (दुव्वूरु आर.एल रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 16 .02.2023 L.Rama, SPS आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee– De Paul Educational Society, Pinakadimi Pinakadimi Post, Pedavegi Mandal, Eluru, West Godavari 2. रधजस्व/The Revenue – Commissioner of Income Tax (Exemptions), Hyderabad 3. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 4.गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam