Sant Shree Asharamji Mahila Utthan Ashram Vs Deputy Director of Income Tax (Exemption) (ITAT Ahmedabad)
The appeals were decided by the Income Tax Appellate Tribunal, Ahmedabad Bench in relation to Assessment Year 2011–12. Two appeals were filed challenging separate orders of the Commissioner of Income Tax (Appeals) dated 03.02.2015 and 04.01.2018. The first appeal concerned an assessment completed under Section 144 of the Income-tax Act, 1961, while the second related to a penalty imposed under Section 271(1)(c) of the Income-tax Act, 1961.
There was a delay of 47 days in filing the appeal relating to the penalty. An affidavit from one of the trustees explained that the authorised representative and other trustees were engaged in legal work in a separate case at Jodhpur, and the authorised person responsible for filing the appeal could not be contacted in time. Considering this explanation and the merits of the case, the Tribunal condoned the delay.
The assessee trust had filed its return of income on 13.09.2011 declaring income of ₹39,729 after claiming exemption of ₹41,91,970. The case was selected for scrutiny. During the assessment proceedings, the Assessing Officer (AO) asked the trust to furnish documents to verify the claim for exemption, including an exemption certificate under Section 35(1)(i) of the Income-tax Act, 1961, Section 35(1)(ii) of the Income-tax Act, 1961, or Section 10(23C) of the Income-tax Act, 1961, proof of registration under Section 12AA of the Income-tax Act, 1961, a copy of the trust deed, a certificate under Section 80G of the Income-tax Act, 1961, and registration with the Charity Commissioner. These documents were sought to examine the claim for exemption under Section 11 of the Income-tax Act, 1961 and Section 12 of the Income-tax Act, 1961.
