FRIENDS ASSOCIATES CHARITABLE TRUST,DELHI vs. INCOME TAX OFFICER, WARD EXEMPT 1(1), DELHI, DELHI

आयकर अपीलीय अधिकरण, दिल्ली पीठें, नई दिल्ली INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, NEW DELHI BENCH: A BEFORE SHRI M BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA 6251/DEL/2026 (निर्धारण वर्ा/Assessment Year: 2017-18) INCOME TAX OFFICER, FRIENDS ASSOCIATES CHARITABLE TRUST WARD EXEMPT 1(1), DELHI 22/5, EAST PUNJABI BAGH, Vs. PUNJABI BAGH, WEST DELHI, DELHI अपीलधर्थी Appellant प्रत्यर्थी Respondent

Permanent Account Number of Assessee: AAATF2945F

अपीलधर्थी द्वारा/Appellant represented: Sh S. K. Gupta, CA प्रत्यर्थी द्वारा/Respondent represented by: Ms. Harpreet Kaur Hansra, Sr. Dr

सुनवाई की तारीख / Date of conclusion of hearing: 16-Sep-2026 घोषणा की तारीख / Date of pronouncement: 21-Sep-2026 आदेश / ORDER SHRI M BALAGANESH, ACCOUNTANT MEMBER The appeal in ITA No. 6251/Del/2026 for AY 2017-18, arises out of the 1. order of the ld. Jt. Commissioner of Income Tax (Appeals)-6, Kolkata [hereinafter referred to as ‘ld. JCIT(A)’, in short] dated 10.03.2026 against the order of assessment passed u/s 154 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 02.01.2020 by the Assessing Officer, CPC, Bangalore (hereinafter referred to as ‘ld. AO’).

The ld AR before us submitted that the issue involved in the present 2. appeal is exactly identical to the issue already adjudicated by this Tribunal in Assessee’s own case for AY 2018-19 in ITA No. 6252/Del/2026 dated 25-08- 2026.

The only issue to be decided in this appeal is as to whether the learned 3. NFAC was justified in confirming the action of the learned CPC in denying the claim of exemption under section 11 of the Act in the facts and circumstances of the instant case for non-filing of Form 10 .

We have heard the rival submissions and perused the material available 4. on record. We find that the issue in dispute is already adjudicated in Assessee’s own case for AY 2018-19 as stated supra. The relevant operative portion of the said order is reproduced below:-

“3. I have heard the rival submissions and perused the materials available on record. The Assessee is a charitable trust duly registered under Section 12A of the Act. In the return of income filed by the Assessee for assessment year 2018- 19, the Assessee claimed deduction under Section 11(2) of the Act for accumulation of income of Rs. 13,95,124 for which the Assessee was required to file Form No. 10 on or before the due date of filing the return of income under Section 139(1) of the Act. The Assessee based on the advice of a legal consultant, inadvertently filed Form No. 9A instead of filing Form No. 10. This was condoned by Learned Commissioner of Income Tax (Exemptions), Delhi vide order under section 119(2)(b) of the Act dated 22-11-2021. Accordingly, this Tribunal in the first round of proceedings in ITA No 504/Del/2021 dated 22-11- 2022 had restored the appeal to the file of Learned CIT(A) for denovo adjudication in accordance with law. In the second round of proceedings, the Learned CITA found that it was not a case where Form No. 9A was required to be filed, but it was the case of filing of Form No. 10. On that ground, the Learned NFAC dismissed the appeal for non-filing of Form No. 10. The order of Learned NFAC was passed on 10-03-2026. 4. It is not in dispute that Assessee had indeed filed Form No. 10 belatedly on 07-05-2026, i.e. after the date of passing of order of learned NFAC. But I find that the same requires factual verification. Ultimately the action of the belated filing and wrong filing of prescribed form was already condoned by the Learned CIT (Exemptions) under section 119(2)(b) of the Act. Hence the Learned NFAC would not be justified in holding that the Form No. 10 was not filed by the Assessee in the instant case. Either way, it is only accumulation of income that is being sought by the Assessee trust in terms of section 11(2) of the Act. Considering the fact that the claim of accumulation of income was indeed made in the income tax return itself and in the audit report in Form 10B, the non-filing of Form 10 alone in time could not be the relevant factor in denying the claim of deduction under section 11(2) of the Act. Hence in the interest of substantial justice and fair play, I deem it fit and appropriate to restore this appeal to the file of the learned AO for denovo adjudication in accordance with law. I make it very clear that in the set aside assessment proceedings, the revenue shall not raise any objection with regard to the belated filing of Form No. 10 and purely adjudicate the issue on merits. Accordingly, the grounds raised by the Assessee are allowed for statistical purposes. 5. In the result, the appeal of the Assessee is allowed for statistical purposes.” Respectively following the same, the grounds raised by the Assessee are 5. allowed for statistical purposes by restoring the appeal to the file of ld AO for de novo adjudication in accordance with law.

In the result, the appeal of the Assessee is allowed for statistical 6. purposes.

Order pronounced in the open court on 21st -Sep-2026.

-Sd/- -Sd/- SUDHIR KUMAR M BALAGANESH JUDICIAL MEMBER ACCOUNTANT MEMBER Delhi Dated: 21/09/2026 AK Keot

Copy to: SAURABH PANDEY, HOUSE NO. 342-C, GROUND FLOOR, BLOCK 1 G, SUSHANT LOK 2, SECTOR 57, GURGAON-122003, HARYANA DEPUTY COMMISSIONER INCOME TAX, 2 INCOME TAX OFFICE, UDYOG VIHAR, GURGAON-122001, HARYANA 3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI BENCH 5 GUARD FILE