SHIVA SHIKSHA SAMITI,DEENDAYAL PURAM,UP AVAS VIKAS COLONY SIKANDRA AGRA vs. INCOME-TAX OFFICER, WARD-EXEMPTION, AGRA, AAYAKAR BHAWAN, SANJAY PLACE, AGRA

ITA 415/AGR/2026Status: DisposedITAT Agra15 October 2026AY 2017-1810 pages
AI SummaryRemanded

What were the facts?

The assessee, Shiva Shiksha Samiti, an educational institution registered under Section 12A, is in appeal before the Income Tax Appellate Tribunal (ITAT) against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 29.01.2025 for Assessment Year (AY) 2017-18. The appeal was filed with a delay of 405 days, which the ITAT condoned. The Assessing Officer (AO) disallowed the exemption claimed under Sections 11 and 12 of the Income Tax Act, 1961, on the grounds that the assessee failed to file the mandatory audit report in Form 10B within the prescribed time. This led to the surplus of Rs. 1,21,11,638/- being taxed. The CIT(A) upheld the AO's order, noting that the audit report was not submitted during assessment proceedings and that the partial submission of Form 10B did not meet the statutory requirement.

What did the Tribunal hold?

The Tribunal noted that the assessee claimed to have obtained the audit report in Form 10B on 31.08.2017, which was before filing the return of income on 29.03.2018, and that Form 10B was filed on 29.03.2018. The CIT(A) had observed that the complete audit report was not submitted during assessment proceedings and that only the first two pages of Form 10B were uploaded. However, the Tribunal found that the CIT(A) had not made a categorical finding that the assessee's claim of obtaining the report on 31.08.2017 was incorrect. The Tribunal also noted that the assessee had filed an acknowledgement of receipt of Form 10B furnished on 29.03.2018, which required verification. Consequently, the Tribunal set aside the order of the CIT(A) and remanded the matter back to the AO for a fresh assessment. The AO was directed to examine the correctness of the assessee's claim regarding obtaining and filing Form 10B as per CBDT Circular No. 10 of 2019, and if found correct, to pass an order accordingly after providing the assessee with a reasonable opportunity of being heard.

What were the issues?

1. Whether the assessee is entitled to claim exemption under Sections 11 and 12 of the Income Tax Act, 1961, despite not filing the audit report in Form 10B within the prescribed time, considering CBDT Circular No. 10 of 2019. Assessee's Contention: The assessee argued that CBDT Circular No. 10 of 2019 allowed for condonation of delay in filing Form 10B for AY 2017-18, provided the audit report was obtained before filing the return of income and submitted subsequently. The assessee claimed to have obtained the audit report on 31.08.2017, filed the return of income on 29.03.2018, and furnished Form 10B on 29.03.2018, thus complying with the circular. They relied on the circular and submitted documentary evidence, including the ITR, audit report, and acknowledgement of receipt of Form 10B. Revenue's Contention: The Revenue, through the Sr. DR, supported the orders of the lower authorities, implying that the assessee had not complied with the conditions for exemption.

Which sections of the Income-tax Act were involved?

Section 250,Section 11,Section 12,Section 12A,Section 139,Section 143(3),Section 142(1),Section 143(1),Section 245,Section 119(2),Section 12AA(1)(b)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA (DB

Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH

Hearing: 04.08.2026Pronounced: 15.10.2026

PER : BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER: This appeal is directed against the impugned order dated 29.01.2025 passed in appeal No. CIT(Appeal) 2, Agra/10456/2019-20 by the ld. Commissioner of Income Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the “CIT(A)] u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for the A.Y. 2017-18, wherein ld. CIT(A) has dismissed assessee’s appeal.

2.

At the outset, we notice that there is a delay of 405 days in filing the present appeal before us. In this regard, the assessee has filed a condonation application. The relevant extract of the same is

The order continues below.

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