DINKARRAO K SHINDE SMARAK TRUST,GADHINGLAJ vs. DEPUTY COMMISSIONER OF INCOME TAX EXEMPTION CIRCLE PUNE, AAYKAR BHAVAN PUNE

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ITA 1595/PUN/2026Status: DisposedITAT Pune15 October 2026AY 2021-224 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee was duly registered under Section 12AA of the Act. For AY 2021-22, the provisions of Section 12AB were not applicable. Therefore, the Centralized Processing Center (CPC) erred in rejecting the exemption solely on the basis of not having new registration details under Section 12AB. Furthermore, the Tribunal noted that the CBDT had condoned the delay in filing Form 10B vide its order dated 23.09.2026. In light of these facts, the Tribunal directed the AO to allow the exemption to the assessee as claimed in the return of income. The grounds of appeal raised by the assessee were allowed.

What were the facts?

The assessee, Dinkarrao K Shinde Smarak Trust, filed an appeal against the order of the Ld. Addl./JCIT(A) for Assessment Year 2021-22. The appeal challenges the disallowance of exemption under Section 11 of the Income Tax Act, 1961. The Assessing Officer (AO) had denied exemption based on the lack of new registration under Section 12AB and delayed filing of Form 10B. The assessee argued that they were registered under Section 12AA, which was applicable for AY 2021-22, and that the delay in filing Form 10B was condoned by the CBDT. The return of income was filed within the due date.

What were the issues?

1. Whether the CIT(A) erred in not restricting any addition to the net commercial income instead of the entire gross receipts, as argued by the assessee. 2. Whether the CIT(A) erred in confirming the AO's disallowance of exemption under Section 11 for delayed filing of Form 10B, despite the assessee's submission that it is a procedural requirement and the delay was condoned by the CBDT. 3. Whether the CIT(A) erred in not accepting the assessee's submission that exemption cannot be denied on the ground of applying for new registration after filing the return of income, as it is not a condition precedent. Assessee's contentions: - For AY 2021-22, Section 12AB was not applicable; Section 12AA registration was valid. - Delay in filing Form 10B was condoned by the CBDT vide order dated 23.09.2026. - Applying for new registration after filing the return does not preclude exemption. Revenue's contentions: - The Ld. DR relied on the orders of the AO and the Ld. Addl./JCIT(A).

Which sections of the Income-tax Act were involved?

Section 11,Section 12AA,Section 12AB,Section 139(1),Section 250,Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

Before: SHRI PAVAN KUMAR GADALE & SHRI Dr. DIPAK P. RIPOTE

For Appellant: Shri Pramod S Shingte
For Respondent: Shri Mithun Shete, CIT-DR

PER Dr. DIPAK P. RIPOTE, A.M : This is an appeal filed by the assessee against the order of the Learned Additional/Joint Commissioner of Income Tax (Appeals)-2, Bengaluru [Ld. Addl./JCIT(A)], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’) for AY 2021-22 on 13.03.2026.

2.

The assessee has raised the following grounds of appeal : “1. On the facts and in the circumstances of the case and in law, the CIT(A), NFAC erred in not accepting submission of the 1 appellant that the addition, if any, ought to have been restricted only to the Net commercial income and not the entire Gross Receipts. 2. On the facts and in the circumstances of the case and in law, the CIT(A), NFAC erred in confirming the action of the AO of disallowing exemption u/s 11 for delayed filing of Form 10B not 2 accepting the submission of the appellant that Form 10B being only a procedural requirement, addition of the gross receipts is incorrect only on such ground particularly when, though late, the appellant having complied with requirement

ITA No.1595/PUN/2026

3.

On the facts and in the circumstances of the case and in law, the CIT(A), NFAC erred in not accepting submission of the appellant that the appellant having applied for new registration after filing the return of income, exemption cannot be denied on this ground as it is not a condition precedent for claiming the exemption u/s 11.” Submission of Ld. AR :

3.

The Ld. AR filed paper book. The Ld. AR submitted that the assessee had filed return of income on 15.03.2022 and the due date for filing return of income was 15.03.2022. Thus, the Ld. AR submitted that the assessee filed return of income within the due date u/s 139(1) of the Act. The Ld. AR invited our attention to the order u/s 143(1) of the Act dated 23.08.2022. The Ld. AR invited our attention to page 8 of the order u/s 143(1) of the Act wherein the reasons for disallowance are mentioned which is as under : “In Schedule Part A General "Details of registration or approval under Income Tax Act details of Section 12AB or 10(23C)(iv)/ 10(23C)(v)/10(23C) (vi)/10(23C)(via) is not provided in the column "Section under which the registration is applied". The Act has been amended from 01/06/2020, and all the entities have to get new registration/approval u/s 12AB or 10(23C) (iv)/10(230)(v)/ 10(230)(vi)/10(230)(via) to be eligible for exemption. Since in your case, new registration/approval details are not available.”

3.1 The Ld. AR submitted that the assessee was duly registered u/s 12AA of the Act vide order dated 27.08.2010. Copy of the said order is issued by the Ld. CIT is at page 13 of the paper book. The Ld. AR read the section 12AA of the Act and submitted that the provisions of section 12AB were applicable after 1st April, 2021. The present assessment year is AY 2021-22 means FY 2020-21. The Ld. AR submitted that therefore no provisions of section 12AB of the Act were applicable to the assessee for AY 2021-22. Hence, Centralized Processing Center (CPC) has erred in stating the same. The Ld.

ITA No.1595/PUN/2026 AR repeated that the assessee is duly registered u/s 12AA of the Act. The Ld. AR submitted that hence, the assessee is eligible for deduction as claimed in the return.

3.2 The Ld. AR further submitted that however the assessee applied to Central Board of Direct Taxes (CBDT) order u/s 119(2)(b) of the Act to condone the delay in filing Form 10B. The Ld. AR submitted that the CBDT vide its order dated 23.09.2026 has condoned the delay in filing Form 10B of the Act. The Ld. AR filed copy of the order of CBDT order u/s 119(2)(b) of the Act. The Ld. AR pleaded that hence there was no reason for denying the exemption to the assessee.

Submission of Ld. DR :

4.

The Ld. DR relied on the order of the Assessing Officer (AO) and the Ld. Addl./JCIT(A).

Findings and Analysis:

5.

We have heard both the parties and perused the records. In this case, admittedly, the assessee had filed return of income u/s 139(1) of the Act on 15.03.2022 and the due date for filing of return of income was 15.03.2022 which is evident from the order u/s 143(1) of the Act dated 23.08.2022. The same is reproduced here as under :

ITA No.1595/PUN/2026

5.1 However, the CPC while processing the return has denied the exemption to the assessee. We have perused the paper book and noted that the assessee is duly registered u/s 12AA of the Act. Therefore, for AY 2021-22 once the assessee was registered u/s 12AA of the Act, the CPC has erred in rejecting the exemption to the assessee. It is also noted that the CBDT vide its order dated 23.09.2026 has condoned the delay in filing Form 10B. In these facts and circumstances of the case, we direct the AO to allow exemption to the assessee as claimed in the return of income. Accordingly, the grounds of appeal raised by the assessee are allowed.

6.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open Court on 15th October, 2026

Sd/- Sd/- (PAVAN KUMAR GADALE) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER

पुणे/Pune; दिन ांक/Dated : 15-10-2026 Ravi Kumar आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. The concerned Pr. CIT, Pune 4. DR, ITAT, ‘A’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, Sunil Kumar Digitally signed by Sunil Kumar More // True Copy // More Date: 2026.10.25 10:20:02 +05'30' Assistant Registrar आयकर अपीलीय अदिकरण,पुणे / ITAT, Pune

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