INCOME TAX OFFICER WARD EXEMPTION,VADODARA, VADODARA vs. LIMBASI KELVANI MANDAL, LIMBASI

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ITA 1019/AHD/2026Status: DisposedITAT Ahmedabad12 May 2026AY 2020-214 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since Form 10B was filed before the due date of filing the return of income, the deduction under Section 11 should be allowed. The order of the CIT(A) was upheld.

What were the facts?

The assessee claimed exemption under Section 11, but it was disallowed during processing under Section 143(1) because Form 10B was not filed by the due date. The assessee filed Form 10B before filing the return of income, and the rectification application was rejected. The CIT(A) allowed the assessee's appeal.

What were the issues?

Whether the disallowance of exemption under Section 11 was justified due to the delayed filing of Form 10B, even when filed before the return of income.

Which sections of the Income-tax Act were involved?

Section 11,Section 139,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Ketan Shah, AR
For Respondent: Shri Abhijit, SR. DR
Hearing: 06.05.2026Pronounced: 12.05.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the Revenue against the order dated 06.01.2026 passed by Addl/JCIT(Appeal), Thane [hereinafter referred to as ‘Addl. CIT(A)’] for the Assessment Year (A.Y.) 2020-21 in the proceeding u/s. 154 of the Income Tax Act.

2.

The brief facts of the case are that the assessee had filed its return of income on 04.02.2021 showing Nil income after claiming exemption u/s. 11 of the Act. The return was processed u/s 143(1) of the Act on 30.11.2021 and while processing the return the deduction claimed u/s. 11 was disallowed for the reason that form No. 10B was not filed within due

ITA No. 1019/Ahd/2026 ITO Vs. Limbasi Kelvani Mandal, AY- 2020-21 2 date. Thereafter, the assessee had filed an application u/s. 154 of the Act with a request to rectify the intimation. The assessee had clarified that form No. 10B was duly filed on 28.01.2021, before filing the return of income on 21.02.2021. Thus, the form No. 10B was available with the Department while processing the return u/s. 143(1) of the Act and, therefore, the disallowance of claim u/s. 11 of the Act was not correct. The rectification application of the assessee was rejected by the AO vide order u/s. 154 of the Act dated 06.11.2024.

3.

Aggrieved with the order of the AO, the assessee had filed an appeal before the first appellate authority, which was decided by the Ld. Addl. CIT(A) vide the impugned order and the appeal of the assessee was allowed. Th

4.

Now the Revenue is in appeal before us. The following ground have been taken in this appeal:

1.

Whether on facts and in circumstances of the case, Ld. Addl. CIT(A), NFAC is justified in allowing the assessee’s appeal and in allowing the claim of the appellant u/s. 11 of the Act in respect of the sum of Rs.2,16,62,444/- for the year under consideration. 5. Shri Abhijit, the Ld. SR-DR, submitted that the due date of filing Form No. 10B for the current year was 15.01.2021, whereas the assessee had filed this form 28.01.2021. Considering the delay in filing of Form No. 10B by the assessee, the CPC had rightly disallowed the claim for deduction u/s. 11 of the Act. The Ld. SR-DR submitted that in view of the default of the assessee in filing form No. 10B on the due date, the Ld. Addl. CIT(A) was not correct in allowing the deduction u/s. 11 of the Act.

ITA No. 1019/Ahd/2026 ITO Vs. Limbasi Kelvani Mandal, AY- 2020-21 3 6. Per Contra, Shri Ketan Shah, the Ld. AR of the assessee submitted that for the current year the due date of filing of return was extended till 15.02.2021 whereas the assessee has filed its return on 04.02.2021. The Ld. AR fairly admitted that the due date for filing form No. 10B was one month prior to the due date of return, which was 15.01.2021 in the present case. However, the assessee had filed form No. 10B on 28.01.2021 before filing the return of income. The Ld. AR submitted that it is a settled position that the deduction u/s. 11 is to be allowed even in a case where form No. 10B is filed even in the course of assessment proceeding. The Ld. AR reiterated that in the present case the assessee had filed form No. 10B prior to filing of his return of income. Therefore, the Ld. Addl CIT(A) has rightly allowed the deduction u/s. 11 of the Act.

7.

We have considered the rival submissions. There is no dispute to the fact that the assessee had filed form No. 10B on 28.01.2021, which was prior to filing of its ITR on 04.02.2021. Further, it is an admitted fact that the due date of filing of return for the current year was extended till 15.02.2021. Thus, the assessee had filed form No. 10B as well as the ITR within the due date u/s. 139(1) of the Act. As per the provision of section 11(2)(a) of the Act, the assesse was required to furnish the statement in form No. 10B within due date specified under sub-section (1) of section 139 of the Act. Further, the provision of section 13(9) of the Act stipulates that the deduction u/s. 11 of the Act can be denied only if the statement was not furnished on or before the due date of furnishing of return u/s. 139 of the Act. In the present case, the assessee had filed form No. 10B well within the due date of 15.02.2021 for furnishing of return of income u/s. 139(1) of the Act for the current year. Therefore, the Ld. Addl. CIT(A) had

ITA No. 1019/Ahd/2026 ITO Vs. Limbasi Kelvani Mandal, AY- 2020-21 4

rightly allowed the appeal of the assessee. The Revenue has been unable to controvert the findings of the Ld. Addl. CIT(A). The order of the Ld. Addl. CIT(A) is, therefore, upheld.

8.

In the result, the appeal of the Revenue is dismissed.

Order pronounced in the Court on 12/05/2026 at Ahmedabad.

Sd/- Sd/- (SAJAY GARG) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 12th May, 2026 (True Copy) Neelesh, Sr. PS आदेश आदेश क� आदेश आदेश क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : अ�ेिषत 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A) 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण / DR, ITAT, 6. गाड� फाईल /Guard file. आदेशानुसार/BY ORDER, आदेशानुसार आदेशानुसार आदेशानुसार पंजीकार (Dy./Asstt.Registrar) उप उप/सहायक उप उप सहायक सहायक पंजीकार सहायक पंजीकार पंजीकार आयकर आयकर अपीलीय आयकर आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण, अहमदाबाद अिधकरण अहमदाबाद अहमदाबाद / ITAT, Ahmedabad अहमदाबाद

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