The Madras High Court has condoned the delay in filing appeal subject to depositing of Rs. 1000 in Advocate Clerks Welfare Association.
The bench of Justice Krishnan Ramasamy has observed that the delay in filing the income tax appeal was due to the belief in their exemption under Section 10(23BBA) of the Income Tax Act and their unfamiliarity with income tax proceedings, which resulted in the belated approach to filing the appeal. The reason provided for non-filing of the appeal within the prescribed time, appeared to be genuine.
Background
The petitioner/assessee, a religious institution listed under Section 46(iii) of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959, did not file any income tax return on the grounds that its income is exempted under Section 10(23BBA) of the Income Tax Act, 1961. The petitioner’s income, derived from proper endowments and voluntary contributions, was properly deposited into bank accounts and utilized for the temple’s welfare activities. During the demonetization period the petitioner made certain cash deposits, which arose from contributions deposited by devotees in the Hundi.
The department issued a reassessment notice under Section 148 of the Income Tax Act. Being unfamiliar with income tax proceedings, the petitioner filed their return belatedly on 26.01.2023. Subsequently, the files were transferred to the third respondent, who completed the reassessment and made an addition of Rs.1,34,07,629/- under Section 147 read with Section 144 read with Section 144B of the Act on 16.02.2024. The petitioner then approached the Statutory Appeal before the department; however, the appeal was dismissed solely on the ground that there is no provision under the Act to condone the delay.
Conclusion
The court condoned the delay in filing the appeal on the condition that the petitioner shall pay a sum of Rs.1,000 to the Madras High Court Advocate Clerks Welfare Association, Madras High Court, Chennai, within one week.
The court directed the Commissioner of Income Tax (Appeals)/Appellate Authority is to take up the appeal without raising any issues related to limitation and to dispose of it on merits and in accordance with the law, after affording the petitioner a reasonable opportunity to be heard.
Case Title: M/s.Arulmigu Aruthra Kapaleeswarar Temple v/s The Commissioner of Income Tax (Appeals)
Citation: W.P.No.26716 of 2024
Counsel for the Petitioner: Mr.V.Anandhamoorthy
Counsel for the Respondent: Dr.B.Ramaswamy
