NEW BOMBAY MERCHANTS EDUCATIONAL FOUNDATION,NAVI MUMBAI vs. ACIT, CPC BANGALORE, CPC BANGALORE

This appeal filed by the assessee is directed against the order dated 22.10.2024 passed by the Ld. Commissioner of Income Tax (Appeals), Chennai for the assessment year 2016–17 arising out of the intimation issued under section 143(1) of the Income-tax Act, 1961 (in short “the Act”).

The Ld. Authorised Representative submitted that the assessee had filed a condonation petition u/s 119(2)(b) before the Ld. CIT(E) for delay in filing Form 10B and the same was pending consideration. It was contended that the denial of exemption u/s 11 is dependent upon the outcome of such condonation petition and therefore the authorities below were not justified in confirming the addition without awaiting the decision of the Ld. CIT(E).

The Ld. Departmental Representative relied upon the orders of the lower authorities.

We have heard the rival submissions and perused the material on record. The assessee has filed a condonation petition before the Ld. CIT(E) u/s 119(2)(b) seeking condonation of delay in filing audit report in Form 10B. The allowability of exemption u/s 11 is contingent upon the outcome of such petition. In these facts, adjudication of the issue by the Ld. CIT(A) without the decision of the Ld. CIT(E) was premature.

In view of the above, we deem it appropriate to remit the matter back to the file of the Assessing Officer with a direction to decide the issue afresh after taking into consideration the decision of the Ld. CIT(E) on the condonation petition.

The assessee is directed to extend full cooperation and furnish all requisite details as may be called for by the Assessing Officer and the Ld. CIT(E).

In the result, the appeal is allowed for statistical purposes. 10. Order pronounced in the open court on 05/05/2026.