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Facts
The assessee's appeal for AY 2020-21 arose from an order denying section 11 exemption. The denial was based on the failure to file the section 139(1) return and Form 10B by the due date. The assessee did not dispute this factual position.
Held
The Tribunal noted that the lower authorities assessed the assessee's entire receipts as business income without allowing expenditure deductions for net income. Consequently, the Assessing Officer was directed to examine the issue afresh.
Key Issues
Whether the assessee is eligible for section 11 exemption despite not filing the return and tax audit report by the due date, and whether expenditure deductions should be allowed.
Sections Cited
143(1), 11, 139(1), 10B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2020-21 Akriti, Vs Income Tax Department, B-119, Baba Colony, Burari S.O., E-2, Ground Floor, ARA Centre, Burari, New Delhi-110084 Block E1, Jhandewalan Extension, Karol Bagh, New Delhi-110005 (APPELLANT) (RESPONDENT) PAN No. AAATA6832E Assessee by: None Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 26.08.2025 Date of Pronouncement: 26.08.2025 ORDER
This assessee’s appeal for Assessment Year 2020-21, arises against the Addl./JCIT(A)-1, Ahmedabad’s DIN & order No.ITBA/APL/S/250/2025-26/1078080356(1) dated 01.07.2025, in proceedings u/s 143(1) of the Income Tax Act, 1961 (in short “the Act”).
Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.
A perusal of the instant assessee’s appeal file indicates at the outset that both the learned lower authorities have denied it section 11 exemption for the precise reason that it had not filed it’s section 139(1) return as well as the prescribed Form 10B Tax Audit Report on or before the prescribed “due” date.
Akriti The assessee has also been fair all along in not disputing this clinching factual position in it’s pleadings. That being the case, it emerges during the course of hearing that both the learned lower authorities have also assessed the assessee’s entire receipts of Rs.30,91,342/- under “business” head than having granted the corresponding expenditure deductions for the purpose of assessing it’s “net” income. It is thus deemed appropriate to direct the learned Assessing Officer to examine the instant issue afresh as per law preferably within three effective opportunities of hearing. Ordered accordingly.
This assessee’s appeal is allowed for statistical purposes. Order Pronounced in the Open Court on 26/08/2025.