THE NATIONAL SODALITY CENTRE ,MUMBAI vs. INCOME TAX OFFICER EXEMPTION WARD 2(4), MUMBAI

PDF · subscribers
ITA 3470/MUM/2025Status: DisposedITAT Mumbai24 July 2025AY 2023-24Bench: SHRI NARENDRA KUMAR BILLAIYA, HON'BLE (Accountant Member), SHRI ANIKESH BANERJEE, HON'BLE JUDICIAL MEMBER Ι.Τ.Α. No. 3470/Mum/2025 Assessment Year: 2023-24 The National Solidarity Centre Seva Niketan Sir J.J. Road, Byculla Mumbai - 400008 [PAN: AAATT0571B] Vs Income Tax Officer, Exemption, Ward – 2(4), Mumbai अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent) Assessee by: Ms. Vasanti B. Patel, A/R Revenue by: Shri Leyaqat Ali Aafaqui, Sr. D/R सुनवाई की तारीख/Date of Hearing घोषणा की तारीख / D1 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 followed a coordinate bench's decision. It noted that the audit report was filed with the return and before the processing, even if after the due date. The denial of exemption solely on this ground was considered incorrect.

What were the facts?

The assessee filed Form 10B belatedly, after the extended due date. The CPC denied exemption under Section 11 based on this delay. The CIT(A) upheld this denial.

What were the issues?

Whether the exemption under Section 11 can be denied for belated filing of Form 10B when it was filed before processing and the due date was extended.

Which sections of the Income-tax Act were involved?

Section 11,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI NARENDRA KUMAR BILLAIYA, HON’BLE & SHRI ANIKESH BANERJEE, HON’BLE

For Appellant: Ms. Vasanti B. Patel, A/R
Hearing: 21/07/2025Pronounced: 24/07/2025

Assessee by : Ms. Vasanti B. Patel, A/R Revenue by : Shri Leyaqat Ali Aafaqui, Sr. D/R सुनवाई की तारीख/Date of Hearing : 21/07/2025 घोषणा की तारीख /Date of Pronouncement: 24/07/2025 आदेश/O R D E R

PER NARENDRA KUMAR BILLAIYA, AM:

1.

This appeal by the assessee is preferred against the order of the Addl./JCIT(A)-5, Kolkata [hereinafter ‘the CIT(A)’] dated 21/03/2025 pertaining to AY 2023-24.

2.

The sum and substance of the grievance of the assessee is that while processing the return of income, the CPC Bengaluru denied exemption/deduction u/s 11 of the Act on the ground that the audit report in Form 10B was filed belatedly and the ld. CIT(A) erred in confirming the action of the CPC, Bengaluru. 3. Briefly stated the facts of the case are that the CBDT extended due date of filing Form 10B for the year under consideration till 31/10/2023 vide Circular No. 16/2023 dated 18/09/2023. The assessee filed Form 10B on 29/11/2023 along with the return of income. As Form 10B was 2 filed after the due date of filing, therefore, while processing the return vide intimation u/s 143(1) of the Act, the claim of exemption/deduction were denied. The order of the processing is dated 18/11/2024. 4. Considering the factual matrix of the date of filing Form 10B qua the date of processing the return of income, we find that Form 10B was available when the return was processed. On identical set of facts, the Co-ordinate Bench in assessee’s own case for AY 2022-23 in held as under:- “2. The brief facts are that the assessee had filed return declaring income of Rs. 3,11,481/- for the A.Y 2022-23 on 07.11.2022. The Dy. Director of Income Tax (DDIT), Central Processing Centre (in short "CPC"), Bengaluru processed the return u/s 143(1) of the Act and made addition of Rs. 28,90,892/- by disallowing the entire expenditure claimed as deduction u/s 11 of the Act on the ground that Form No. 10B had not been filed before the due date. The Ld. Addl. CIT(A), Lucknow dismissed the appeal on the ground that the AO as well as Appellate authorities do not have the power to grant condonation of delay in filing Form No. 10B.

3.

Before us, the Ld. AR submitted that the audit report in Form No. 10B had been filed on 07.11.2022 along with the return of income. The return had been filed within the extended due date as per the CBDT circular No. 20/2022 dated 26.10.2022 vide which the due date had been extended from 31.10.2022 to 07.11.2022. The intimation u/s 143(1) of the Act was issued on 03.03.2023 as such the audit report was on record much before the processing of return. In this regard, the Ld. AR cited several decisions of the ITAT as well as Hon'ble High court of Gujarat in its favour. Specifically reliance was placed on the latest order of coordinate Bench in the case of Snehasadan Vs. ITO in dated 24.07.2024, where in a similar situation it has been held as under:

5. We find force in assessee's foregoing sole substantive grievance in principle. This is for the precise reason that not only there is no denial from the Revenue side that the due date of filing return had been extended for the assessee's return itself is not time barred) but also the relevant Form-10B audit report stood uploaded well with the return and indeed during the course of processing itself. We accordingly conclude in light of the foregoing judicial precedent that the assessee could not have been declined the impugned exemption for this precise reason in other words. We accordingly deem it appropriate to accept the assessee's instant sole substantive grievance and direct the learned Addl./ JCIT(A)-3, Bengaluru to examine it's case on merits afresh as per law. Ordered accordingly.

4.

After considering the facts circumstances and judicial pronouncements on this issue, and respectfully following the decision of the coordinate Bench, we hereby direct the AO to consider the claim of exemption u/s 11 of the Act as per law after taking into account the audit report filed in Form No. 10B on 07.11.2022.

5.

In the result, the appeal filed by the assessee is allowed.”

More judgments on Section 11

All 7,190 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →