NIC INSTITUTE OF TECHNOLOGY,KOLKATA vs. ITO, WARD 1(1), EXEMPTION,, KOLKATA

आयकर अपील�य अ�धकरण, कोलकाता पीठ, कोलकाता IN THE INCOMETAXAPPELLATE TRIBUNAL “C”BENCH KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member

ITA. No.2678/Kol/2025 Assessment Year: 2021-22 NIC Institute of Technology,……………………………………………..Appellant C/s. Agarwal Vishwanath & Associates, 133/1/1A, S.N. Banerjee Road, Pushkal Bhawan, 3rd Floor, Kolkata- 700013 Pan[AABTN5500H] vs. ITO, Ward 9(1), Exemption………………………………………………Respondent Income Tax Office, 10B, Middleton Row, Kolkata- 700071

Appearances by: Shri Deep Agarwal, AR, Advocate, appeared on behalf of the appellant. Shri Soumitra Ghosh, Addl. CIT, Sr. Dr, appeared on behalf of the Respondent. Date of concluding the hearing :April 02, 2026 Date of pronouncing the order : April 28, 2026 ORDER Per Pradip Kumar Choubey , Judicial Member: The present appeal has been filed by the assessee against the order dated 09.10.2025 passed by NFAC(Ld. CITA) under section 143(1) of the Income Tax Act, 1961 for the assessment year 2013- 14. 2. The brief facts of the case of the assessee, assessee being a charitable trust filed its return of income for the assessment year 2021-22 declaring total income of Rs. 4,56,210/-. The said return was processed u/s 143(1) of the Act wherein CPC

I.T..A.No.2678/Kol/2025 Assessment year: 2021-22 disallowed the exemption claim u/s 11 amountingto Rs. 80,07,315/- on the ground of delay in filing of audit report in form No. 10B and also did not give the credit of tax amounting to Rs. 19,500/-. Consequently, CPC has raised a demand of Rs. 50,17,091/-.

Aggrieved by the said order assessee preferred appeal before the JCIT(A) wherein appeal of the assessee has been dismissed in limine on the point of limitation.

Being aggrieved by and dissatisfied the assessee preferred appeal before us.

S.N Case Title Citation

I.T..A.No.2678/Kol/2025 Assessment year: 2021-22 o

ITAT Kolkata, Kayee Foundation us 6. ΓΙΑ Νο. 1774/KOL/2024 ITO

Contrary to that Ld. DR supports the impugned order thereby submitting that there was a delay of 603 days and there was no reasonable explanation filed by the assessee to justify such a huge delay.

I.T..A.No.2678/Kol/2025 Assessment year: 2021-22 suddenly fell ill and he was advised totake rest and he was under medical care for a period from 21.06.2021 up to 23.12.2022 resulting ofthe audit report has been filed on 23.12.2022 and there was a delay of 11 months. We have gone through the order of various Tribunal as well as Hon’ble High Court and find that it has been held that benefit of exemption cannot be denied merely on bar of limitation to submit form No. 10.

Hon’ble Gujarat High Court in the case of Sarvodya Charitable Trust reported in 2021(125) taxmann.com 75 Gujarat has been held that exemption u/s 11 of the Act cannot be denied for delayed filing of form 10B, if assessee satisfied the condition for availing the benefit of exemption. 5. In the present case we find that assessee is a charitable trust and CPC has disallowedthe exemption claimed u/s 11 solely on the ground of delayed filing of form 10B. We further find that before the JCIT(A), appeal of the assessee has been dismissed on the point of limitation and there was no adjudication on the merit of the case. The assessee has submitted that there was a bona fide ground/justification of delay and he took the plea of medical ground. In a catena of decision it has been held by the Hon’ble High Court and Apex Court that a case should be decided on merit and not on technicalities. Since the JCIT(A) has dismissed the appeal of the assessee on the point of limitation, hence, we are in this view to restore the appeal of the assessee before the JCIT(A)with this direction to pass an order on merit and after considering the judicial pronouncement on the issuing of filing of form 10B. Assessee is directed to cooperate in the remand proceeding, JCIT(A)before coming into conclusion shall consider

I.T..A.No.2678/Kol/2025 Assessment year: 2021-22 the submission and judicial pronouncement as discussed above and thereafter pass order. Order passed by the JCIT(A) hereby set aside. The appeal of the assessee is remitted back to the file of the JCIT(A) for fresh consideration in the light of observation made above. As a result, the appeal of the assessee has been allowed for the statistical purpose.

Kolkata, the 28th March, 2026.

Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member

Dated: . 28. 04.2026. Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar, Kolkata Benches

I.T..A.No.2678/Kol/2025 Assessment year: 2021-22