B P MARINE ACADEMY ,NAVI MUMBAI vs. CIT (EXEMPTION), MUMBAI

ORDER Per Kavitha Rajagopal (JM):

These appeals have been filed by the assessee as against order of a CIT (Exemptions) under section 263 dated 18/03/2021 and 19/03/2021, for assessment years 2015-16 and 2016-17, respectively. 2. As the assessee grounds of appeal in both the appeals raised by the assessee are identical, a consolidated order is passed.

3. The brief facts are that the assessee is a public charitable trust registered under section 12A of the Income-tax Act, 1961. The assessee is carrying on educational activity in the field of marine course, which are approved by the D.G. Shipping, Government of India or any institution approved by Government of Indi such as Pre-sea & Post-sea courses to marine fraternity. The assessee filed its return of income for the assessment years 2015-16 & 2016-17 on 29/10/2015 and 17/10/2016 respectively, declaring total income at Nil for both the assessment years. The assessee’s case was selected for scrutiny and the scrutiny assessment order were passed thereafter wherein the Assessing Officer has allowed accumulation Rs.4,90,55,690/- and Rs.9,63,68,771/-, respectively, under section 11(2) of the I.T. Act, 1961. On examination of assessment records, it was found that the assessee has filed Form 10 for both the impugned assessment years after the due date specified under section 139(1) and assessee has not filed any application for condonation of delay in filing Form 10. However, this fact has not been verified by the Assessing Officer during the assessment proceedings. Therefore, the learned CIT (Exemption) invoked his jurisdiction under section 263 on the ground that the assessment order for both the impugned assessment years are erroneous insofar as it is prejudicial to the interest of the revenue as the AO has failed to verify the delay in filing Form 10. Aggrieved by this the assessee is in appeals before us.