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Facts
The assessee, registered under section 12AB, filed its ROI for AY 2021-22 late. The CPC determined a higher income due to denial of exemption for late filing of Form 10B. Although the delay in Form 10B was condoned by the CIT(E), the CIT(A) dismissed the appeal due to the delayed ROI.
Held
The Tribunal noted that the CIT(A) had not considered the issue of delayed ROI being attributable to the Covid pandemic. The Tribunal found it appropriate to remit the matter back to the CIT(A) for fresh adjudication.
Key Issues
Whether the exemption under section 12A can be denied solely due to the delayed filing of the Return of Income, even when the delay in Form 10B has been condoned and the delay in ROI is attributed to the Covid pandemic.
Sections Cited
12A, 12AB, 139(8A), 119(2)(b), 143(1), 250, 154
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH, ‘A’: NEW DELHI
Before: MS. MADHUMITA ROY
ORDER PER AMITABH SHUKLA, AM,
This appeal filed by the assessee is against order dated 31.10.2025 of the Learned ADDL/JCIT (A)-2, Pune [hereinafter referred to as ‘ld. CIT(A)] arising out of assessment order dated 31.07.2024 passed u/s 154 of the Income Tax Act, 1961 pertaining to Assessment Year 2021-22. The word ‘Act’ herein this order would mean Income Tax Act, 1961.
The assessee has raised following grounds of appeal:-
1. That the Ld. CIT(A) has erred in law and on facts in passing the impugned 0rder under section 250 dated 31.10.2025 and making arbitrary addition of total receipts s 97 66 255 without considering the facts of the case properly which is bad in law. ' ' Therefore, 1961 dated the impugned order passed u/s 250 of the Income Tax Act 31.10.2025 is liable to be quashed.
2. That the Ld. CIT(A). has erred in law and on facts in arbitrarily disallowing the exemption claimed under section 12A of the Income Tax Act, 1961, ignoring the facts of the case and without bringing any cogent material, therefore such order is unsustainable in law and therein liable to be deleted.
That the impugned Order has been passed without following the laid down procedure as per Provisions of Income Tax Act, and CBDT Circular/Notification/Instruction, therefore the impugned Assessment Order is unsustainable in law and liable to be quashed 4. That the Ld. CIT(A) has also erred in law and on facts making addition of Rs 97,66,255 thereby indirectly disallowing the genuine and actual expenses incurred by the appellant for Assessment Year 2021-22, despite the same being non-contentious and having been impliedly accepted in the appellate order passed under section 250 of the Income-tax Act; 1961. 5. That the Ld. CJT(A) has also erred in the fact that the appellant gets the condonation of delay of filing of Form 10B from the CIT (Exemptions), Lucknow under section 119(2)(b) via order No ITBA/COM/F/17 /2024-25/1074553867{1) dated 17.03.2025. 6. That the arbitrary disallowance made by the Ld. CIT (A) in the income of the appellant society is too much high and excessive and liable to be deleted. 7. That the arbitrary disallowance made by the Ld. CIT (A) in the income of the appellant society is contrary to the principles of natural justice and equity, therefore liable to be deleted. 8. That any other relief or reliefs as your honour may deem fit in the facts and circumstances of the case, be granted. Your humble appellant craves leave to add, amend or withdraw of any Grounds of Appeal
on/or before hearing of appeal.
3. The only issue seminal to the present appeal is regarding the denial of appellant’s claim of exemption by the CPC on account of delay in filing the Page 2 of 4 Return of Income and Form-10B. The ld. Counsel for the assessee submitted that the appellants society is registered under section 12AB of the Act. Return of Income for AY 2021-22 was filed under section 139(8A) of the Act declaring income of Rs.2,49,230/- CPC Bangalore determined income under section 143(1) at Rs.97,66,255/-. The determined income included denial of exemption on account of late filing of Form under section 10B dated 25.07.2022, filed on 23.09.2022. The ld. Counsel submitted that the delay in filing of Form 10B was condoned by CIT(E), Lucknow, vide order dated 17.03.2025 under section 119(2)(b) of the Act. The ld. CIT(A) dismissed assessee’s appeal holding that Return of Income was delayed and hence exemption cannot be granted. The ld. Counsel submitted that the delayed filing of Return of Income was attributable to prevailing Covid pandemic.
Per Contra, the ld. DR relied upon the order of the lower authorities.
We have heard the rival submission and perused the material available on record. There is no dispute regarding the delayed filing of return and the condonation of delay in Form 10B granted to the assessee. It is not clear as to whether delayed filing of return attributable to prevailing covid pandemic was covered by any extensions or not. The ld. CIT(A) has not considered this issue in his order, the matter was raised before him. We are therefore of the considered view that ends of justice would be met if the matter is remitted back to the file of the ld. CIT(A). Accordingly, we set-aside the matter to the file of Page 3 of 4 the Ld. CIT(A) with the directions to adjudicate the appeal of the assessee de novo, in accordance with law and after giving due opportunity of being heard to the assessee. It shall be bounden upon the assessee to comply with all the statutory notices issued by ld. CIT(A). Any non-compliance shall be adversely viewed. The appeal of the assessee is allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 09th April, 2026. Sd/- Sd/- [MADHUMITA ROY] [AMITABH SHUKLA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 09.04.2026 Shekhar Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,
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