MSME Technology Centre Vs ITO (ITAT Visakhapatnam)
Summary: MSME Technology Centre, a non-profit Government Organization and a center of excellence established in Visakhapatnam by the Ministry of Micro, Small and Medium Enterprises, Government of India, filed its return for AY 2022-23 under section 139(4) declaring total income of Rs.15,08,96,622/-. While processing the return under section 143(1), the CPC disallowed Rs.13,82,21,062/- towards corpus donations and Rs.1,26,75,560/- towards aggregate income derived under section 11 from voluntary contributions. The assessee filed an appeal before the CIT(A) with a delay of 453 days, explaining the delay, but the CIT(A) dismissed the appeal without examining the merits. Before the Tribunal, the assessee submitted that it had been pursuing an alternate remedy by filing a condonation petition before the Income Tax Authorities and was hopeful of receiving a favourable reply. The Tribunal held that the reasons explained constituted “sufficient cause” for condonation of delay and that the CIT(A) ought to have condoned the delay in the interest of substantial justice. Accordingly, the Tribunal condoned the 453-day delay and remitted the issue to the CIT(A) for consideration on merits. Considering the assessee’s lackadaisical approach, the Tribunal directed payment of a cost of Rs.5,000/- to the Prime Minister’s National Relief Fund within 15 days from the date of the order, with proof to be produced before the Registry. The appeal was allowed for statistical purpose.
