FRIENDS OF SICK ASSOCIATION ,BENGLAURU vs. ITO (EXEMPTIONS), WARD-1, BANGALORE

The assessee has raised the following grounds of appeal:-

Aggrieved by the intimation passed u/s 143(1) of the Act dated 29.1.2025, the assessee preferred an appeal before the ld. CIT(A)/Addl/JCIT(A).

The ld. Addl. JCIT(A)-6 Mumbai dismissed the appeal of the assessee by holding that the assessee was required to file Form No.10 as per section 11 (2) of the Act r.w. Rule 17(2) on or before the due date as per the Income Tax Act. Further, ld. Addl/JCIT(A) observed that the assessee has filed Form 10 on 14.2.2025 which is after the passing of intimation dated 29.1.2025 and accordingly held that CPC was correct in denying the claim of exemption of Rs.93,36,275/- u/s 11(2) of the Act. Lastly, the ld. Addl./JCIT(A) also held that it is a trite law that if a thing is said to be done in a particular manner, it shall be done in that manner and its performance in any other mode or fashion shall be of no consequence and therefore, the ld. Addl/JCIT(A) did not inclined to interfere with the decision of the AO.

Again, aggrieved by the order of ld. Addl/JCIT(A)-6 Mumbai, the assessee has filed the present appeal before this Tribunal.

Before us, the ld. A.R. of the assessee filed a synopsis along with evidence of filing Form No.10 as well as copy of the application filed before the ld. CIT(Exemptions), Bengaluru seeking condonation

The ld. D.R. on the other hand, also fairly conceded that the case of the assessee may be remitted to the file of AO with a direction to act accordingly as per the result of condonation application.

We have heard the rival submissions and perused the materials available on record. The only dispute in the present case is related to disallowance of exemption claimed of Rs.93,36,275/- u/s 11(2) of the Act. On going through the intimation passed u/s 143(1) of the Act, the claim made u/s 11(2) of the Act has been disallowed as per provisions of section 143(1)(a)(ii) of the Act as the assessee had not filed the Form 10 for claiming the accumulation of income. Before us, the ld. A.R. of the assessee vehemently submitted that the CPC denied the exemption claimed u/s 11 solely on the ground that Form 10 was not filed within the prescribed time and consequently determined the total income at Rs.93,36,280/- and raised a demand of Rs.34,27,640/-. Therefore, in our considered opinion, it is not a case that no Form 10 has been filed. In fact, the contention of the assessee is that upon receipt of the intimation u/s 143(1) of the Act, the assessee realized thereafter that Form 10 had not been filed due to an inadvertent error on the part of the auditor and the same was subsequently filed on 14.2.2025. It is also submitted before us that an application for condonation of delay in filing of the form 10 u/s 119(2)(b) of the Act was also filed on 28.3.2025 before the ld. CIT(Exemptions, Bengaluru which is still pending for consideration and accordingly prayed that the present

In the result, appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 29th May, 2026