The Salesian Sisters Vs. ITO, Ward-1(3), Exempt, Kolkata

Parties Involved

Facts Summary

The assessee, The Salesian Sisters, a charitable society registered under section 12AA of the Income Tax Act, filed its return of income for the assessment year 2018-19 on 30.12.2018, declaring 'NIL' income. However, the Central Processing Centre (CPC) determined the total income at ₹3,41,09,928/- due to the assessee having admitted income chargeable under section 11(3) of the Act. Consequently, a demand of ₹1,43,99,556/- was raised. The Assessing Officer (AO) completed the assessment without any additions, considering the total income as per the order under section 143(1) of the Act. Aggrieved by this, the assessee filed a petition under section 264 of the Act for rectifying the mistake in the return, which was dismissed. Subsequently, the assessee filed an appeal before the Commissioner of Income Tax (Appeals)-NFAC, Delhi, which was also dismissed for condonation of delay.…

Legal Issues

• 1. Whether the delay in filing the appeal before the CIT(A) should have been condoned.
• 2. Whether the CIT(A) ought to have reversed the action of the AO in assessing the income of the assessee.
• 3. Whether the receipts amounting to ₹ 3,41,09,928/- should be treated as accumulated funds under section 11(2) and not includable as income.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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