FOSMA MARITIME INSTITUTE & RESEARCH ORGANISATION,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX-EXEMPTION CIRCLE 1, MUMBAI, MUMBAI

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ITA 4354/MUM/2026Status: DisposedITAT Mumbai29 June 2026AY 2024-255 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found merit in the assessee's submission regarding the inadvertent mistake and the subsequent filing of Form 10B. The matter was remitted back to the Assessing Officer to consider the case after the application for condonation of delay is disposed of by the CIT(E).

What were the facts?

The assessee inadvertently filed an audit report in Form 10BB instead of the required Form 10B. This led to the denial of exemption under Section 11 by the CPC. The assessee later filed Form 10B and an application for condonation of delay under Section 119(2)(b).

What were the issues?

Whether a procedural lapse in filing the audit report in the wrong form (10BB instead of 10B) should lead to the denial of exemption under Section 11. Whether the application for condonation of delay in filing Form 10B should be considered.

Which sections of the Income-tax Act were involved?

Section 11,Section 12A,Section 119(2)(b),Section 143(1),Section 139(1),Section 44AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: HON’BLE SHRI AMIT SHUKLA & HON’BLE SHRI GIRISH AGRAWAL

For Respondent: Smt. Amrita Singh, CIT DR

INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI BENCH: E BEFORE HON’BLE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND HON’BLE SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA 4354/MUM/2026 िनधा�रणवष�/Assmt. Year: 2024-25 Permanent Account Number: AAATF0597P Fosma Maritime Institute & Research Organisation Assistant Commissioner Of 102a, Fulcrum, Sahar Road, Income Tax, Andheri (East), Exemption Circle 1, Vs. Mumbai – 400099 Mumbai Maharashtra

(अपीलाथ� Appellant) (��थ� Respondent)

िनधा�रती�ारा/Assessee represented by: Shri Mayank Thosar, CA राज� व�ारा/Revenue represented by: Smt. Amrita Singh, CIT DR

सुनवाईकीतारीख/Date of conclusion of hearing: 23-June-2026 घोषणाकीतारीख/Date of pronouncement: 29-June-2026 आदेश / ORDER PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal is filed by the assessee against the order of ADDL/JCIT (A)-1 Visakhapatnam, ITBA/APL/S/250/2025- 26/1087304131(1) dated 13.03.2026 passed against the intimation issued by the Centralized Processing Center, Bengaluru (CPC) u/s 143(1) of the Income-tax Act (hereinafter referred to as the “Act”), dated 22.12.2025, for the Assessment Year 2024-25.

ITA No. 4354/Mum/2026 FOSMA Maritime Institute and Research Organisation A.Y. 2024-25 2. Essentially, the issue involved in the present appeal is in respect of denial of exemption u/s. 11 on the ground that audit report in Form 10B was not filed in time as assessee had inadvertently filed the audit report in Form 10BB. According to the assessee, filing of wrong form is not a substantive default but clearly a procedural and curable defect. Assessee is registered u/s. 12A and has applied its income in accordance with the provisions of section 11 and is therefore, entitled to exemption available u/s. 11.

3.

Brief facts of the case are that assessee is section 15 company registered under the Companies Act, 2013. Assessee filed its return of income on 30.09.2024, claiming exemption u/s. 11. It furnished it audit report in Form-10BB on 24.09.2024. CPC processed its return on 27.11.2024, proposing an adjustment u/s. 143(1)(ii) on the ground that total income of the assessee exceeds Rs.5 Crores and that it is required to file audit report in Form-10B. Assessee replied to CPC that it has furnished the required audit report which needs to be considered while processing the return. This was submitted under a bonafide belief that it had filed the audit report in the right Form-10B instead of Form-10BB which was filed inadvertently. The return was processed resulting into denial of claim of exemption u/s.11 and raising a demand of Rs. 3,52,92,590/- for want of Form-10B.

3.1. Assessee realized its mistake upon receipt of intimation u/s. 143(1) that it had furnished Form-10BB instead of Form-10B. This mistake was made good by furnishing Form-10B on 31.12.2025. Assessee also moved an application u/s. 119(2)(b) before the ld. CIT(E) for condonation of delay in filing of Form-10B, explaining its case for the inadvertent mistake happened by filing Form-10BB instead of Form- 10B. This application is filed under a stamped acknowledgement dated

ITA No. 4354/Mum/2026 FOSMA Maritime Institute and Research Organisation A.Y. 2024-25 21.01.2026 and is placed on record before us. In para-7 of this application, assessee has explained its case which is reproduced as under: “7. In the present case, the Assessee had filed the audit report within the due date; however, the same was inadvertently filed in Form No. 10BB instead of Form No. 10B. There was therefore a reasonable cause behind the delay in filing Form 10B. Further, denial of exemption would result in genuine hardship, given the large amount of tax that would be payable, which would significantly impact our educational activities. Accordingly, the Assessee's case is squarely covered by the aforesaid CBDT Circular.”

3.2. This application is pending for disposal by the ld. CIT(E) as stated by the ld. CIT DR in the course of hearing before us.

4.

Before us, ld. Counsel for the assessee placed reliance on the decision of Hon’ble High Court of Calcutta in the case of Howrah Heritage Society and Ans. vs. Union of India in WPA No. 9369 of 2026, dated 05.05.2026 wherein it is held on similar issue that procedural lapse in filing audit report in Form-10BB instead of Form-10B cannot defeat entitlement of exemption u/s. 12A. Hon’ble Court on similar fact pattern had directed the Revenue to consider and dispose off assessee’s application for condonation of delay in filing Form-10B along with application seeking rectification of an inadvertent mistake in filing audit report in Form-10BB instead of Form-10B in terms of CBDT Circular No. 16/2024. According to the Hon’ble Court, since the Charitable Trust is registered u/s. 12A, exemption u/s. 12A is a substantive right and a procedural lapse in filing the audit report in Form-10BB instead of Form-10B cannot, by itself, defeat such substantive entitlement. For this, it placed reliance on the decision of Hon’ble Supreme Court in the case of Rajasthan and Gujarat Charitable Foundation [2018] 14 SCC 348. Hon’ble Court observed that “Administrative inaction in deciding a statutory application within prescribed period warrants an interference" and directs Revenue to

ITA No. 4354/Mum/2026 FOSMA Maritime Institute and Research Organisation A.Y. 2024-25 pass a reasoned speaking order in accordance with law upon affording an opportunity of hearing to the Assessee and communicate such decision within a week thereafter”.

4.1. Reference was also made to the decision of Hon’ble High Court of Gujarat in the case of CIT vs. Xavier Kelavani Mandal (P) Ltd. [2014] 41 taxmann.com 184 (Guj) wherein it was held that in order to claim exemption u/s.11, assessee can file audit report in Form – 10B even at a later stage, either before Assessing Officer or before the appellate authority by showing a sufficient cause.

5.

Ld. Counsel, thus assertively submitted that assessee be given exemption u/s.11 as claimed by it in its return, as Form–10B is already on record. Ld. CIT DR referred to para-5.1.3 of the order of the ld. CIT(A) wherein facts relating to the present case are mentioned, which requires that assessee was to file its audit report electronically one month prior to the due date for furnishing the return u/s. 139(1), in terms of section 12A r.w.s. 44AB along with Rules 17B and 12 of the Income-tax Rules, 1962. According to him, since assessee has filed its Form-10B on 31.12.2025, he held that benefits of section 11 and 12 are rightfully denied and thus, dismissed the appeal.

6.

We have heard both the parties and perused the material on record. We have also given thoughtful consideration to the submissions made by both the parties along with judicial precedents relied upon. We do find force in the submissions made by the ld. Counsel in respect of inadvertent mistake committed in filing Form- 10BB instead of Form-10B which is duly supported by the decision of Hon’ble High Court of Calcutta (supra). Furthermore, it is an undisputed fact that assessee has furnished Form-10B electronically

ITA No. 4354/Mum/2026 FOSMA Maritime Institute and Research Organisation A.Y. 2024-25 on 31.12.2025 and sought condonation of delay in filing the same by making an application u/s. 119(2)(b) which is pending for disposal before the ld. CIT(E). Considering these facts and judicial precedents, we find it appropriate to remit the matter back to the file of ld. Jurisdictional Assessing Officer (JAO) to consider the case of the assessee, taking into account Form-10B on record and the outcome of the application moved by the assessee u/s.119(2)(b) as and when it is disposed of by the ld. CIT(E). Accordingly, grounds raised by the assessee in this regard are allowed for statistical purposes.

7.

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

Order pronounced in the open court on 29 June, 2026.

Sd/- Sd/- (Amit Shukla) (Girish Agrawal) Judicial Member Accountant Member Dated: 29.06.2026 MP, Sr. PS Copy of the order forwarded to: 1. The appellant 2. The respondent 3. CIT-concerned 4. DR, ITAT, Mumbai 5. Guard file TRUE COPY

ASSISTANT REGISTRAR/ SR. PRIVATE SECRETARY I.T.A.T., MUMBAI

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