DUTTA MANDIR SANSTHAN ,AHMEDNAGAR vs. ITO EXEMPTION WARD 1(1), NASHIK

Hon'ble CIT(A) has erred in confirming denial of Form 10 for accumulation manually filed, set by post to ITO Exemption, Nashik and denying application in u/sec 11 (deduction u/sec 11(2) brining to Tax Rs. 85 Lakhs). Appellant prayed for cancellation of addition/ disallowance.

CIT(A) has erred in not allowing deduction u/sec 11(2) of Rs. 85 laksh considering application form 10 manually filed dated 01/10/2016 and resubmitted with application dated 3rd July 2019.

CIT(A) has erred in not considering the fact that said application in fact is made in F.Y. 2018-19 and F.Y. 2019-20.

Appellant prayed for just and equitable relief.

Appellant denies liability to interest u/sec 234B, 234C etc.

Appellant prays to add, alter, amend, take additional grounds, submit additional evidence, and/or withdraw the grounds, during appellate Proceedings. 2. The brief facts of the case are that, the assesseei s a public trust registered u/sec 12AA of the Income Tax Act. The assessee has filed the return of income for the A.Y. 2016-17 on 13.10.2016 disclosing a total income of Rs.NIL after claiming exemption u/sec11 of the Act. Further the assessee has filed Form.No.10 manually with the I T O (Exemption) Nashik. Subsequently, the return of income was processed u/sec 143(1) of the Act and it was found that the Form.No.10 was not filed on line before the due date of filling the return of income u/sec139(1) of the Act and the assessee has violated the provisions and the availing the benefit u/sec 11 of the Act is denied and assessed the total income of Rs.85,49,177/- vide order dated 3.01.2018. Subsequently, the assessee has filed rectification petition u/sec154 of the Act and was rejected vide order dated 23.11.2021.

Aggrieved by the order, the assessee has filed the appeal before the CIT(A). Whereas the CIT(A) has considered the grounds of appeal, statement of facts, submission of assessee and findings of assessing officer and but has confirmed the action of the CPC/A.O and dismissed the assessee’s appeal. Aggrieved by the order of the CIT(A), the assessee has filed the appeal before the Hon'ble Tribunal.

At the time of hearing, the Ld. AR submitted that the CIT(A) has erred in sustaining the denial of the claim of exemption overlooking the facts and submissions. The CIT(A) has not considered the information that the Form,no.10 was filed before the ITO Exemption Nashik much before the processing of return of income u/sec143(1) of the Act. Further, the Ld.AR submitted that the delay in filling Form.No.10 on application U/sec119(2)(b) of the Act was condoned vide Approval order of CIT(Exemption) Pune dated 26.01.2026 and prayed for allowing the appeal. Per contra, the Ld.DR supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. The sole crux of the disputed issue envisaged by the Ld.AR that the CIT(A) has erred in sustaining the denial of claim u/sec 11 of the Act as the assessee has not filed the Form No. 10 within the time allowed. Further, the Ld.AR submitted that the delay in filling Form.No.10 , on application U/sec119(2)(b) of the Act was condoned vide Approval order of CIT(Exemption) Pune dated 26.01.2026 and placed the copy of approval order. We considering the facts, circumstances, submissions and approval order dealt above, set aside the order of the CIT(A) and direct the assessing officer to grant the benefit of exemption u/sec11 of the Act claimed by the assessee. And the grounds of appeal are allowed in favour of the assessee.

In the result, the appeal filed by the assessee is allowed.