BHIKKHU SANGHAS UNITED BUDHHIST MISSION,MUMBAI vs. ASSESSING OFFICER EXEMPTION WARD 1(1), MUMBAI, MUMBAI

PER PAWAN SINGH, JUDICIAL MEMBER;

31.10.2025 for Assessment Year (A.Y.) 2016-17.The assessee has raised the

following grounds of appeal:

“1.1. In the facts and circumstances of the case and in law the impugned intimation u/s 143(1) of the Income Tax Act ["the Act" for short] passed by the Learned Assessing Officer ["the Ld. AO" for short] as confirmed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre ["the Ld. CIT(A)"] is bad in law and void since the same is passed in gross violation of principles of natural justice and is also contrary to the intent of the circulars issued by the Central Board of Direct Tax ["the CBDT" for short] in this regard. 1.2. In the facts and circumstances of the case and in law the impugned intimation u/s 143(1) of the Act passed by the Ld. AO erred in confirmed by the Ld. CIT(A), is bad in law since the adjustments made therein are beyond the purview of section 143(1) of the Act and therefore unsustainable.

1.3. In the facts and circumstances of the case and in law the Ld. CIT(A) erred in not appreciating that the Assessee has already filed the necessary Form 10B with

Bhikku Sanghas United Buddhist Mission ITA No. 9264/Mum/2025 (AY 2016-17) some delay which was unintentional and for reasons beyond the control of the Assessee and therefore the exemption as claimed should have been allowed. 1.4. While affirming the action of the Ld. AO in denying exemption u/s 11 in the intimation u/s 143(1) of the Act, the Ld. CIT(A) failed to appreciate that: (a) The intimation u/s 143(1) is bad in law and void since the same is contrary to the provisions of the Act; (b) The Appellant is the Charitable Trust registered under the Bombay Public Trust Act and is holding a valid registration u/s 12A of the Act as also 80G of the Act. The Trust is formed in the year 1984 and always been diligent in all its compliances and filings except for the year(s) under appeal, (c) The Appellant has duly filed the audit report in form 10B and as held in various precedents, the filing of the said form is directory in nature and therefore the Ld. AO erred in denying exemption u/s 11 of the Act to the Appellant simply on this ground, (d) The Appellant has been granted exemption u/s 11 of the Act ever since its establishment, (e) The delay in filing Form 10B was unintentional and for the reasons beyond the control of the Appellant; (f) Even as per the CBDT the delay caused in filing Form 108 was to be condoned since Assessment Year (AY) 2016-17 being the First Year of the e-filing and there was a lot of confusion among the taxpayers 1.5. In the facts and circumstances of the case and in law the impugned order passed by the Ld. CIT(A) and the intimation passed by the Ld. AO are bad in law and void since the same are contrary to the extant law and the judicial precedents in this regard. 1.6. Without prejudice to the above and in the alternative if the exemption was to be denied to the Appellant even then the income should have been computed on commercial accounting principles and the Ld. AO as well as the Ld. CIT(A) erred in not computing the correct income of the Appellant as per the extant law in this regard. 1.7. In the facts and circumstances of the case, and in law, it is prayed that the claim of exemption u/s 11 of the Act as made by the Appellant be granted and the returned income be accepted.”

Ld. AR of the assessee submits that assessee is a charitable trust registered

under Bombay Public Trust Act. The assessee was having registration under

Section 12A as well as approval under Section 80G. The assessee is very old trust

and always making all compliances in time. For AY 2016-17 the assessee filed

Bhikku Sanghas United Buddhist Mission ITA No. 9264/Mum/2025 (AY 2016-17) return of income on 21.11.2016. However, audit report in Form 10B was

uploaded on ITBA system only on 30.03.2019. The return was processed by

Central Processing Centre (CPC) Bangalore) and while processing return, the

application of income under Section 11 was not allowed. The assessee filed

appeal before CIT(A) on 30.07.2025. There was delay in filing appeal before the

CIT(A), however, such delay in filing appeal was condoned. However, while

deciding appeal, the ld CIT(A) upheld the action of CPC/AO in not allowing

application under Section 11. The Ld. AR of the assessee submits that he has

two-fold submission, firstly, that adjustment under Section 143(1)was issued

without issuing any show-cause notice which is not permissible. And secondly,

the filing of Form 10B is directory and not mandatory. Form-10B was available

before the CTI(A). The appeal is a continuation of assessment and the CIT(A)

should have considered such Form 10B. The assessee fulfilled all the conditions

for availing benefit under Section 11. The Ld. AR of assessee submits that

Hon’ble Apex Court in CIT(E) vs. Anjana Foundation [2025] 178 taxmann.com

658 (SC)/[2025] 307 Taxman 169 (SC) dated 15.09.2025 has held that charitable

trust cannot be denied benefit of Section 11 solely for not filing audit report in

Form 10B as it is only procedural requirement. Similar view was followed

byAhmedabad Tribunal in Kanchanba Education Trust vs. ACIT/DCIT (E) in I.T.A.

No.1566/Ahd/2025 dated 24.11.2025. The Ld. ARfor the assessee the delay in

filing Form-10B may be condoned and the matter may be restored to the file of

jurisdictional Assessing Officer (JAO) for verification of fact and allowing

Bhikku Sanghas United Buddhist Mission ITA No. 9264/Mum/2025 (AY 2016-17) appropriate relief to the assessee for application of income under Section 11 of

the Act.

authorities. It was argued that power for condoning delay in filing Form-10B lies

with CIT(E) only. However, ongoing through the decisions in CIT(E) vs. Anjana

Foundation (supra) and in Kanchanba Education Trust vs. ACIT (supra),

submitted that he has no objection if the matter is restored back to the file of AO

for verification of fact and passing the order afresh.

through the orders of lower authorities carefully. We find that Ld. AR of the

assessee has explained the fact as has been recorded by lower authorities. We

find that it is an admitted position that return of income was filed in November,

2016 and Form 10B was uploaded on 30.06.2019. Further, it is also a matter to

record that when return was processed, Form 10B was not available in the ITBA

portal (system). However, the Form 10B was uploaded prior to filing appeal

before CIT(A). It is also settled position in law that appeal is in continuation of

assessment proceeding. The CIT(A) as co-terminus power as of AO.

that charitable trusts cannot be denied tax exemptions under Section 11 solely

for filing Audit Report Form 10B late. The court ruled that Form 10B filing is

procedural, and the audit report can be filed before the final assessment,

allowing substantive claims if substantive conditions are met.Thus, considering

the aforesaid legal position, the delay in filing Form 10B is condoned. Considering 4

Bhikku Sanghas United Buddhist Mission ITA No. 9264/Mum/2025 (AY 2016-17) the peculiar facts of the case that facts of the case has not being examined by

lower authorities. Therefore, we deem it appropriate to restore the matter back

to the file of Jurisdictional Assessing Officer (JAO) to verify fact and allow

appropriate relief to the assessee for application of income under Section 11 in

accordance with law.

Order pronounced in the open Court on 11/05/2026.

S S/- Sd/- Sd/-

GIRISH AGRAWAL PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

MUMBAI, DATED: 11/05/2026 Aniket, Sr. PS

Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order Assistant Registrar ITAT, Mumbai