Shri. Ramaiah Reddy Educational Trust vs. ITO (Exemption), Ward – 3, Bangalore

Parties Involved

Facts Summary

The assessee is a Trust running an educational institution registered under section 12A of the Income Tax Act, 1961. For the Assessment Year 2021-22, the return of income was filed on 11.02.2022, declaring total income of Rs.Nil after claiming exemption under section 11 of the Act. The return was processed under section 143(1) of the Act on 12.08.2022. Subsequently, the Assessing Officer (AO) passed a rectification order under section 154 of the Act on 13.02.2023, denying the exemption claimed due to the late filing of the audit report in Form 10B. The assessee appealed to the First Appellate Authority (FAA), who allowed the appeal, holding that the assessee Trust had valid registration under section 12AA of the Act. The Revenue filed an appeal before the Tribunal, challenging the CIT(A)'s order.…

Legal Issues

• 1. Whether the CIT(A) erred in allowing the appeal of the assessee on a different ground than the reason for disallowance of exemption under sections 11 & 12 of the Income Tax Act?
• 2. Whether the delay condonation application filed by the assessee before the Principal Chief Commissioner of Income Tax (E) should be considered before deciding the appeal?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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