Procedural adherence regarding filing forms impacts tax exemptions concerning corpus donations and compliance aids non-profit organizations.

ORDER

The present appeal is directed at the instance of assessee against the order of Id. Additional/Joint Commissioner of Income Tax (Appeals)-7, Mumbai dated 14.03.2024 passed for Assessment Year 2016-2017.

2. The appeal is time barred by 273 days in filing the appeal by the assessee before the Tribunal. However, Shri Arindom Sinha Roy, General Secretary of the appellant-assessee filed an affidavit stating that the appellant-assessee being a non-profit and social organization widely regarded for its relief work to refugees and disaster victims would not have gained in any manner whatsoever by not filing the appeal within the period of limitation and was not aware of any notices of hearing and the order passed by the ld. Addl./JCIT(Appeals). The assessee was not negligent in filing the appeal but for some unavoidable reasons and circumstances, no step was possible to be taken for filing the appeal within the prescribed time. When the assessee came to know about the order passed by the ld. Addl./JCIT(Appeals), the assessee approached the ld. A.R. to prefer an appeal, due to that there was a delay of 273 days in filing the appeal before the Tribunal. Therefore, he pleaded to condone the delay.

3. Considering the facts and circumstances of the case, I am of the view that the assessee was prevented in filing the appeal within the stipulated time. Therefore, I am inclined to condone the delay of 273 days. Hence the delay is condoned in the appeal.

4. The facts in brief are that the assessee filed its return of income for the assessment year 2016-17 on 22.09.2016 through CPC declaring NIL gross total income vide e-filing. The case was selected for Complete Scrutiny through CASS. Notice under section 143(2) of the Income Tax Act dated 14.07.2017 was served upon the assessee. Requisitions were made vide notice under section 142(1) of the Act dated 07.02.2018 and was served upon the assessee. The assessee is registered under section 12A dated 24.06.1994. The assesee furnished audit report in Form No. 10B dated 10.08.2017 along with the return of income. The assesese has claimed donation amounting to Rs.32,33,240/- as Corpus in nature that has been capitalized. The assesese could not submit any proof to substantiate the claim. A number of certificates submitted towards proof of Corpus Donation showed that the certificates were printed by the assessee himself and then signature of the donors were obtained. The assesee could not furnish any explanation. The assessee filed a petition for condonation of delay in submission of Form 10 before the ld. CIT(Exemption), Kolkata which was rejected by the ld. CIT vide order under section 119(2)(b) of the Income Tax Act dated 20.12.2018. It was noted that the claim has not mentioned in the ITR 7 and in the resolution passed in the Executive Committee meeting, the fund was set apart as Corpus Fund. As such, the claim of donation of Rs.32,33,240/- as corpus in nature that has been capitalized was rejected and the amount was added to the income of the assessee for the relevant assessment year by the ld. Assessing Officer.

5. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals).

6. The ld. Addl./JCIT(Appeals) dismissed the appeal of the assessee by observing as under:-

“3.8. Since the appellant has not presented any arguments or submissions or any details filed in support of its claim, the appeal is decided judiciously based on materials available on record.

3.9. I have perused the impugned assessment order u/s 143(3) of the Act dated 21.12.2018. The appellant has not furnished any submissions in support of the grounds of appeal during the a