The court upheld the reasoning that beliefs surrounding tax exemptions can justify delays in appeal filings, necessitating a fresh review of assessments.

आदेश/ORDER

PER VIJAY PAL RAO, VICE PRESIDENT :

These six appeals by the Assessee are directed against the separate orders of the learned CIT(A)-National Faceless Appeal Centre [in short “NFAC], Delhi, all dated 26.10.2023, out of which, 02 appeals are arising from the assessment orders passed u/sec.147 r.w.s.144 of the Income Tax Act, 1961 [in short "the Act"], for the assessment years 2015-2016 & 2016-2017 and 04 appeals are arising from the penalty orders passed u/sec.271B of the Act for the assessment years 2013-2014 to 2016-2017, respectively.

2. There is a delay of 607 days in filing all six appeals. The assessee has filed petitions for condonation of delay whicha re supported by the affidait of the Executive Officer of the assessee temple. The learned Authorised Representative of the Assessee has submitted that the administration of the assessee temple was takenover by the State Government under the Telangana Charitable and Hindu Religious Institutions and Endowment Act, 1987 and consequently, the administrative control of the assessee temple was given to the Executive Officer appointed by the Government under Telangana Charitable and Hindu Religious Institutions and Endowment Act, 1987 hereinafter called “Endowment Act”. The learned Authorised Representative of the Assessee has further submitted that the assessee and it’s management was under the bonafide belief that the income of the assessee temple is exempt u/sec.10(23BBA) of the Income Tax Act, 1961 and, therfore, the assessee did not file any return of income and also could not participate in the proceedings before the Assessing Officer due to lack of knowledge of those proceedings. The learned Authorised Representative of the Assessee has referred to CBDT Circular No.258 Dated 14.06.1979 whereby it is clarified by the CBDT that these public religious or charitable trusts also cover temples, maths, masjids, churches etc., and other place of public religious worship and charitable endowments and income arising to any body or authority established, constituted or appointed under any enactment for the administration of such public religious or charitable trusts or endowments or societies for religious or charitable purposes is exempt u/sec.10(23BBA) of the Act. The learned Authorised Representative of the Assessee has further submitted that the assessee is a 192 years old temple and solely conducts religious activities and also published u/sec.6 of Telangana Charitable and Hindu Religious Institutions and Endowment Act, 1987 and consequently, is under the administrative control of the Commissioner of Endowments Department of the State. Therefore, the assessee was under the bonafide belief that the income of the assessee is exempt u/sec.10(23BBA) of the Act. The State Government conducts audit of the accounts of the assessee temple. He has furtehr submitted that the assessee was allotted PAN on 20.12.2004 in the status of ‘Firm’. Since the assessee has not filed it’s return of income, therefore, the Assessing Officer initiated the proceedings u/sec.147/148 for assessing the income of the assessee on account of deposits made in the bank account. The learned Authorised Representative of the Assessee submitted that the deposits in the bank account are made from the donations received by the assessee which are duly accounted and under the supervision of the Executive Officer appointed under the Telangana Charitable and Hindu Religious Institutions and Endowment Act, 1987 , the temple management is having no control over the affairs, but, the administrative committee i