P D MEMORIAL RELIGIOUS AND EDUCATIONAL ASSOCIATION,,BAHADURGARH vs. DCIT (EXEMPTION) CIRCLE-2, CHANDIGARH

ITA 932/CHANDI/2025Status: DisposedITAT Lucknow28 September 2026AY 2021-225 pages
AI SummaryRemanded

What were the facts?

The assessee, P D Memorial Religious And Educational Association, filed an appeal against the order of the Ld. Addl/Jt. CIT(A), Aurangabad, dated 28/03/2024, for Assessment Year 2021-22. The appeal was filed 417 days beyond the prescribed limitation period. The assessee cited FIRs against the Chairman and Members of the society as the reason for the delay. The Tribunal condoned the delay subject to a cost of Rs. 20,000/- payable to the PM National Relief Fund. The assessee's return of income was due on 15/03/2022, but it was filed on 31/03/2022 under section 139(4). No forms were uploaded with the return, leading to the rejection of the claim for exemption under sections 11/12 read with section 12A. The assessee did not file a reply to the notice issued by the Ld. Addl/Jt. CIT(A), resulting in an ex-parte order.

What did the Tribunal hold?

The Tribunal condoned the 417-day delay in filing the appeal, subject to the assessee paying Rs. 20,000/- as cost to the PM National Relief Fund. Regarding the substantive issues, the Tribunal noted that the assessee filed the return under Section 139(4) on 31/03/2022, and the audit report in Form 10B was filed on 23/03/2023. Citing a coordinate bench decision in ITA No. 3784/Del/2024 and CBDT Circular No. 17/2021, the Tribunal held that the delay in filing Form 10B is a curable defect. They also confirmed that the return was filed within the time limit prescribed for a belated return. Since these aspects were not considered by the Ld. Addl/Jt. CIT(A) due to the assessee's non-compliance, the Tribunal restored the matter to the file of the Ld. Addl/Jt. CIT(A) with a direction to decide the issue afresh after considering the audit report in Form 10B as valid, having condoned the delay in its filing. The Tribunal did not decide the merits of the claim for exemption under Section 11 or the allowability of revenue expenditure, as these were to be adjudicated by the lower appellate authority.

What were the issues?

1. Whether the appeal filed by the assessee is barred by limitation, and if so, whether the delay should be condoned under Section 253(1) of the Income Tax Act, 1961. 2. Whether the Ld. Commissioner of Income Tax (Appeals) erred in not providing a proper opportunity of being heard to the assessee. 3. Whether the action of the CPC in recomputing the returned income without giving any intimation/deficiency under Section 139(9) of the Income Tax Act, 1961, is illegal, unjust, and against the facts of the case. 4. Whether the Ld. Commissioner of Income Tax (Appeals) erred in upholding the action of the CPC in not allowing the benefit of Section 11 read with Section 12A of the Act. 5. Whether the Ld. Commissioner of Income Tax (Appeals) erred in not allowing revenue expenditure of Rs. 3,32,59,776/- as application of income. 6. Whether the Ld. Commissioner of Income Tax (Appeals) erred in not allowing revenue expenditure of Rs. 3,32,59,776/- while disallowing the benefits of Section 11. Assessee's Contentions: The assessee argued that the delay in filing the appeal was due to FIRs against the society's management. They contended that the audit report in Form 10B was filed on 23/03/2023, which was after the intimation under section 143(1) but before the appellate order. They relied on CBDT Circular No. 17/2021, which extended the due date for filing belated/revised returns for AY 2021-22 to 31/03/2022, asserting the return was filed within the due date specified under section 139(4). They also cited a CBDT clarification dated 23/04/2019 and a coordinate bench decision in ITA No. 3784/Del/2024, which held that delay in filing Form 10B is a curable defect and exemption under Section 11 should not be denied. The assessee argued that the requirement is filing under Section 139, not necessarily Section 139(1). Revenue's Contentions: No specific contentions were recorded for the revenue in the provided judgment.

Which sections of the Income-tax Act were involved?

Section 139(1),Section 139(4),Section 139(9),Section 143(1),Section 11,Section 12A,Section 12,Section 253(1)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE "ी लिलत कुमार, "ाियक सद" एवं "ी िवजय वमा" , लेखा सद" BEFORE: SHRI. LALIET KUMAR, JM & SHRI. VIJAY VARMA, AM आयकर अपील सं./ ITA No. 932 /Chd/ 2025 िनधा"रण वष" / Assessment Year : 2021-22 P D Memorial Religious And बनाम The DCIT(Exemption) Educational Association Circle-2,Chandigarh Sarai Aurangabad, Bahadurgarh, Jhajjar-124507, Haryana "ायी लेखा सं./PAN NO: AAATP3857G अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Shri Niraj Jain, C.A राज" की ओर से/ Revenue by : Smt. Kusum Bansal, Pr. CIT, DR(Virtual Mode) सुनवाई की तारीख/Date of Hearing : 09/09/2026 उदघोषणा की तारीख/Date of Pronouncement : 28/09/2026

आदेश/Order PER VIJAY VARMA, A.M: This is an appeal filed by the Assessee against the order of the Ld. Addl/JCIT(A), Aurangabad dt. 28/03/2024, for the Assessment Year 2021-22. 2. At the outset the Registry has pointed out that the present appeal is barred by limitation by 417 days for which the condonation application has been filed for seeking condonation.

3.

In the condonation application the assessee has claimed that th

The order continues below.

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