KRANTIDEVTA SAVITRIBAI PHULE SHIKSHAN SANSTHA,KALYAN vs. INCOME TAX OFFICER-(EXEMPTION), THANE, THANE

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ITA 4490/MUM/2024Status: DisposedITAT Mumbai13 January 2025AY 2022-23Bench: ANIKESH BANERJEE, HON'BLE (Judicial Member)1 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 held that the Form 10BB was digitally signed and uploaded on the same date as the return of income. The validation on a later date was a procedural aspect and did not invalidate the filing. Therefore, the exemption could not be denied.

What were the facts?

The assessee, a public charitable trust, claimed exemption under Section 10(23C)(vi) of the Income Tax Act. They obtained Form 10BB and filed it along with their return of income. However, the CPC disallowed the exemption, stating Form 10BB was not filed.

What were the issues?

Whether the denial of exemption under Section 10(23C)(vi) based on the validation date of Form 10BB, when it was digitally signed and filed with the return, is justified?

Which sections of the Income-tax Act were involved?

Section 10(23C)(vi),Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

Before: ANIKESH BANERJEE, HON’BLE

For Appellant: Shri Himanshu Gandhi, AR
Hearing: 13/01/2025Pronounced: 13/01/2025

Assessee by : Shri Himanshu Gandhi, AR Revenue by : Shri Himanshu Joshi, Sr. DR. सुनवाई की तारीख/Date of Hearing : 13/01/2025 घोषणा की तारीख /Date of Pronouncement: 13/01/2025 आदेश/O R D E R

PER NARENDRA KUMAR BILLAIYA, AM:

1.

This appeal by the assessee is preferred against the order dated 22/08/2024 by the Commissioner of Income Tax (Appeals), Addl. / JCIT (A), Faridabad [hereinafter ‘the ld. CIT(A)’], pertaining to AY 2022- 23.

2.

The assessee has raised the following grounds of appeal:- “1. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in denied the exemption of Rs. 4,07,21,961 under section 10(23C)(vi) of Income Tax Act, 1961.

2. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in denying the exemption of Rs. 4,07,21,961 under section 10(23C)(vi) of Income Tax Act, 1961 on mere procedural delay in validating form 10BB on 05.12.2022 i.e. after filling of return of income on 30.09.2022, even though the form 10BB obtained on 29.09.2022 i.e. before filling the return of income.

3. On the facts and circumstances of the case and law, the Ld. CIT(A) failed to considered that Ld. CIT(A) has inherited power to condone the delay in filling Form 10BB and CBDT Circular is not binding in appellate authority.

4. On the facts and circumstances of the case and law and without prejudice to ground no 1 and 2, the Ld. CIT(A) erred in not allowing the expenses of 2 Rs.4,06,07,733 against the receipt when the exemption of section 10(23C) of Income Tax Act, 1961 was not granted.

5. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming charging of Interest under section 234B and 234C of Income Tax Act, 1961.”

3. Briefly stated the facts of the case are that the assessee is a public charitable trust duly approved under section 10(23C)(vi) of the Income Tax Act, 1961 (hereinafter ‘the Act’) and registered under new provision also vide Registration Certificate dated 09.07.2021. During the year, the assessee has filed its return of income of Rs.4,07,21,961/- and the same was claimed to be exempt under section 10(23C)(vi) of the Act. The assessee had obtained Form 10BB on 29.02.2022 and filed its return of income on 30.09.2022 in which the details of Form 10BB report was mentioned. However, Form 10BB was validated on 05.12.2022 and therefore, the CPC while processing the return of income disallowed the claim of exemption under section 10(23C)(vi) of the Act on assumption that Form 10BB was not filed.

4.

Representatives of both the sides were heard at length. Case records carefully perused and the relevant documentary evidences brought on record duly considered in the light of Rule 18(6) of the ITAT Rules.

5.

For the year under consideration, the due date was extended to 07.11.2022 and the due date for filing Form 10BB was 07.10.2022. The assessee had obtained Form 10BB on 29.09.2022 and the same was uploaded on 30.09.2022 along with return of income. Form 10BB was undoubtedly verified on 05.12.2022 but as per the acknowledgement it 3 has been specifically mentioned that Form 10BB has been digitally signed on 30.09.2022. The notings are as under:

Acknowledgement Number - 834542150051222 This form has been digitally signed by YATINKUMAR SUMATILAL SHAH having PAN ACKPS5096C from IP Address 203.192.243.35 on 30-Sep-2022 11:11:12 PM DSC Sl No and issuer C=IN, O=Verasys Technologies Pvt. Ltd., OU=Certifying Authority

6.

It can be seen from the above that Form 10BB was uploaded along with return of income and was duly verified, therefore, we do not find any reason to deny the exemption claimed by the assessee. The AO is directed to allow the same.

7.

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

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