SUR NIRMAN EDUCATIONAL AND CULTURAL SOCIETY,DELHI vs. INCOME TAX OFFICER, DELHI
Before: SHRI SATBEER SINGH GODARAAssessment Year: 2016-17 Sur Nirman Educational & Cultural Society, Basti Vikas Kendra, Balmiki Basti, Behind Express Building ITO, New Delhi Vs. Income Tax Officer, Ward-Exemptions 2(2), Delhi PAN :AAFTS5017G (Appellant)
This assessee’s appeal for assessment year 2016-17, arises against the Commissioner of Income Tax (Appeals)/National
Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1068746998(1), dated
17.09.2024 involving proceedings under section 154 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
2. The delay of 131 days in filing the assessee’s instant appeal is condoned in light of larger interest of justice as well as Collector,
Assessee by Sh. Ankit Malik, CA
Ms. Tripti Devi, CA
Department by Sh. Akhilesh Kumar Yadav, Sr. DR
Date of hearing
05.06.2025
Date of pronouncement
05.06.2025
2 | P a g e
Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR
471 (SC).
3. This assessee’s appeal raises the following substantive grounds:
“1. That the order of the Commissioner of Income Tax Appeals, National
Faceless Appeal Centre u/s 250 in confirming the assessment passed u/s 154 of the Income Tax Act' 1961 (hereinafter referred to as the "Act") is contrary to the facts and law on the point.
2. That on the facts and circumstances of the case and in law, the Commissioner of Income Tax Appeals, National Faceless Appeal
Centre has erred in disallowance of the benefit u/s 11 of the Act even after filing of Form 10B, though filed after return but before the finalization of assessment by Assessing Officer, merely on surmises and conjectures.
3. That on the facts and circumstances of the case and in law, whether can it be said that merely belated filing of Form 10B render the disallowance of all the benefits allowable to the appellate Charitable
Organization u/s 11 & 12 of the Act.
4. That on the facts and circumstances of the case and in law, whether can it be said that merely belated filing of Form 10B render all the expenses incurred by the appellate Society applied towards the main object of the Society as disallowable.
5. That any consequential relief to which the appellant may be entitled under the foregoing grounds, including relief, in the levy of interest u/s 234A, 234B, 244A of the Act may be granted.
That the appellant craves leave to add, alter, amend, vary or delete any/all the Grounds of Appeal during the course of appellate proceedings.
A perusal of the assessee’s above extracted pleadings indicates that both the learned lower authorities have refused to its section 11 exemption claim for the sole reason of belated filing of tax audit report Form 10B, on or before the due date of filing of section 139(1) return. The Revenue’s case accordingly is that the 3 | P a g e above compliance of timely filing of Form 10B tax audit report is mandatory. Case law CIT vs. Xavier Kelavani Mandal (P.) Ltd., [2014] 41 taxmann.com 184 (Guj.) has already settled the issue in assessee’s favour that the foregoing compliance of filing/upholding form 10B tax audit report is directory than a mandatory provision. That being the case, I find merit in the assessee’s instant sole substantive grievance and direct the learned Assessing Officer to frame its consequential computation as per law after verifying all the relevant facts. 5. This assessee’s appeal is allowed. Order pronounced in the open court on 5th June, 2025 (SATBEER SINGH GODARA)
JUDICIAL MEMBER
Dated: 5th June, 2025. RK/-