THE NATIONAL SODALITY CENTRE ,MUMBAI vs. INCOME TAX OFFICER EXEMPTION WARD 2(4), MUMBAI
| आयकर अपीलीय अिधकरण ायपीठ, मुंबई |
IN THE INCOME TAX APPELLATE TRIBUNAL
“G” BENCH, MUMBAI
BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER
&
SHRI ANIKESH BANERJEE, HON’BLE JUDICIAL MEMBER
I.T.A. 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
अपीलाथ/ (Appellant)
यथ/ (Respondent)
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:
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 I.T.A. No. 3470/Mum/2025
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 ITA No.
2733/Mum/2024 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.
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 ITA No. 2225/Mum/2024 dated 24.07.2024, where in a similar situation it has been held as under:
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.
I.T.A. No. 3470/Mum/2025
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.”
Finding parity of facts, respectfully following the decision of the Co-ordinate Bench (supra), we direct the AO to consider Form 10B and decide the issues afresh after affording reasonable and adequate opportunity of being heard to the assessee. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 24th July, 2025 at Mumbai. (ANIKESH BANERJEE) ACCOUNTANT MEMBER
Mumbai, Dated 24/07/2025
*SC SrPs
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आदेश की ितिलिप अेिषत/Copy of the Order forwarded to :
अपीलाथ / The Appellant 2. थ / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file.
आदेशानुसार/ BY ORDER