THE BOMBAY ST XAVIERS COLLEGE SOCIETY,MUMBAI vs. INCOME TAX OFFICER EXEMPTION, WARD 2(4), MUMBAI

O R D E R Per Anikesh Banerjee (JM):

Instant appeal of the assesse was filed against the order of the Learned Commissioner of Income-tax (Appeals) /ADDL /JCIT(A)-2, Delhi [in short, ‘Ld.CIT(A)] passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’), for Assessment Year 2024-25, date of order 31/03/2025. The impugned order emanated from the order of the CPC, Bengaluru, passed under section 143(1) of the Act, date of order 04/02/2025.

2 ITA 3584/Mum /2025 The Bombay St. Xaviers College Society 2. The assesse is a charitable trust and also registered under Maharashtra Public Trust Act, 1950 on 22/03/1971. The main object of the trust is educational, i.e. running of St. Xaviers College and the recognized institutions in Mumbai. The assesse is eligible for claim under section 11 and accordingly, filed its return with Form 10B. It is found that Form 10B was filed with a delay of 40 days along with the return of income. But the CPC rejected Form 10B and accordingly, rejected the claim under section 11 and added the same with the total income of the assessee. The aggrieved assesse filed appeal before the Ld. CIT(A). The Ld.CIT(A) rejected assessee’s plea and upheld the order passed by the CPC. Being aggrieved, the assesse filed an appeal before us.

“B. Details of Filing Audit Report in Form No.10B 30th September, 2024 1. Due Date of Filing Form No.10B 07th October, 2024 2. Extended Due Date of Filing Form No.10B (as per circular no.10/2024 dated 29/09/2024)

15th November, 2024 3. Date of Filing of Form No.10B C. Details of Filing Return of Income (ITR 7) 31st October 2024 4. Due Date of Filing Return of Income 5. Extended Due date of Filing Return of Income 30th November 2024 (as per circular no.13/2024 dated 26/10/2024) 15th November, 2024 6. Date of Filing Return of Income.

3 ITA 3584/Mum /2025 The Bombay St. Xaviers College Society 4. The Ld.AR respectfully relied on the order of the co-ordinate bench of ITAT, Mumbai Bench “G” in the case of St. Gregorious Education and Medical Trust vs DCIT Exemption / DCIT, CPC- Bengaluru in date of pronouncement 10/06/2025. The relevant paragraph 6 is extracted below:- “6. We have heard the rival submissions and perused the material available on record. It is observed that the assessee filed Form 10B with a delay of 31 days, although the ROI was filed within the extended due date. It is a settled position in law that where the assessee has satisfactorily explained the reason for the delay and has complied with the other procedural requirements for claiming exemption, the benefit should not be denied on mere technical grounds. In the present case, during the processing of the return under section 143(1) of the Act, the said form was already available on record, and the Assessing Officer could have easily verified the applicability of the provisions of section 11 of the Act. The delay in filing Form 10B is merely procedural in nature, and the assessee has otherwise fulfilled the substantive conditions.In view of the above, and respectfully following the decision of the Co-ordinate Bench of the ITAT, Mumbai, we direct the Ld. AO to condone the delay of 31 days and to accept Form 10B after carrying out necessary verification in accordance with law. The assessee shall be entitled to the benefit under section 11 of the Act upon due satisfaction of the conditions prescribed for claiming such exemption. Accordingly, the ground raised by the assessee is allowed.”

4 ITA 3584/Mum /2025 The Bombay St. Xaviers College Society Education and Medical Trust (supra). Accordingly, we remand the matter to the file of the Ld. JAO (Jurisdictional Assessing Officer) and direct him to condone the delay for 40 days and accept Form 10B, after due verification in accordance with law. The assessee shall be entitled to the benefit under section 11 of the Act upon due satisfaction of the conditions prescribed for claiming such exemption. Accordingly, appeal of the assessee stands allowed.