Mohali Education Society Vs CIT (Exemptions) (ITAT Chandigarh)
The assessee, Mohali Education Society, filed an application under Section 119(2)(b) of the Income Tax Act, 1961 seeking condonation of delay in filing Form 10B for Assessment Year 2020-21. The Commissioner of Income Tax (Exemptions), Chandigarh rejected this application through an order dated 21 March 2025. Aggrieved, the assessee filed an appeal before the Income Tax Appellate Tribunal (ITAT), Chandigarh.
At the outset of the hearing, the Departmental Representative argued that the impugned order of the Commissioner (Exemptions) was not appealable before the Tribunal under sub-section (1) of Section 253 of the Act. The assessee’s authorised representative was unable to contest or refute this contention.
Accepting the Department’s position, the Tribunal held that the appeal was not maintainable as the challenged order did not fall within the category of orders that can be appealed to the ITAT under the statutory provisions. Accordingly, the appeal was dismissed. The order was pronounced on 10 November 2025.
Explanation of Section 119(2)(b) (Based on Statutory Purpose)
Section 119(2)(b) empowers the Central Board of Direct Taxes (CBDT) to authorise income-tax authorities to condone delays or grant relief in cases where taxpayers missed deadlines due to genuine hardship. It allows authorities to accept applications, returns, or claims even after the prescribed time limits, provided the conditions of the authorisation are met.
This provision acts as a remedial mechanism to ensure that taxpayers do not suffer adverse consequences merely due to delay, if justified by reasonable cause.
Explanation of Section 253(1)
Section 253(1) lists the categories of orders that may be appealed before the Income Tax Appellate Tribunal. Appeals before the ITAT are permitted only against specific types of orders, such as certain orders of Commissioners (Appeals), orders relating to penalties, or orders passed under specified sections.
If an order does not fall within the classes mentioned in Section 253(1), the Tribunal does not have jurisdiction to entertain an appeal against it.
In the present case, the Tribunal noted that rejection of condonation under Section 119(2)(b) is not one of the orders appealable under this provision.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
