Tribunal Denies Trust's Tax Exemption, Cites Non-Educational Purpose Despite Condoned Appeal Delay.

The ITAT dismissed both appeals, upholding the AO and CIT(A)'s decisions. The Tribunal condoned the delay in filing appeals due to the trustee's affidavit but ultimately ruled that the trust did not qualify for exemption under section 10(23C)(iiiad) of the Income Tax Act, as it was not solely for educational purposes.

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Issues involved: The judgment involves the delay in filing appeals, the eligibility of a trust for claiming exemption u/s 10(23C)(iiiad) of the Income Tax Act, 1961.

Delay in filing appeals: The appeals filed by the assessee were directed against the orders passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 for Assessment Years 2014-15 and 2015-16. The registry noted a delay of 752 & 755 days in filing the appeals. The trustee of the trust filed an affidavit explaining the reasons for the delay, citing professional commitments and lack of experience in handling trust affairs post the demise of the mother who was managing the trust. The Tribunal, considering the reasons given in the affidavit, condoned the delay and admitted the appeals for adjudication.

Eligibility for exemption u/s 10(23C)(iiiad): The main ground argued by the Counsel for the assessee was whether the assessee trust is rightly disqualified for claiming exemption u/s 10(23C)(iiiad) of the Act. The trust, a Charitable Trust not registered u/s 12AA of the Act, had declared total income at Rs. Nil for A.Y. 2014-15, claiming exemption u/s 10(23C)(iiiad). The AO denied the exemption to the extent of Rs. 8,91,095. The CIT(A) upheld the AO's view. The Tribunal observed that the issue was already addressed in a previous order related to the same assessee's case for A.Y. 2009-10. The Tribunal held that the trust was not existing solely for the purpose of education, as per the requirements of section 10(23C)(iiiad), and therefore upheld the orders of the lower authorities, dismissing both appeals filed by the appellant.

Conclusion: The Tribunal dismissed both appeals, upholding the lower authorities' decisions regarding the delay in filing appeals and the disqualification of the trust for claiming exemption u/s 10(23C)(iiiad) of the Income Tax Act, 1961.

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