MEDICOS EDUCATIONAL SOCIETY,TUMKUR vs. INCOME TAX OFFICER, WARD-1, TUMKUR

Per Laxmi Prasad Sahu, Accountant Member : This appeal is filed by the assessee against the CIT(A)’s Order dated 21.08.2024 vide DIN and Order No.ITBA/APL/S/250/2024- 25/1067816502(1). 2. Briefly stated, the facts of the case are that assessee filed return of income on 29.08.2018 declaring total income of Rs. Nil. While processing the return by the CPC on 26.09.2019, the total income was determined at Rs.1,98,99,838/- and exemption under section 11 of the Act was not granted to the assessee because assessee did not file Form 10B along with the return Page 2 of 3 of income. After processing of return, assessee filed application under section 154 of the Act. The Order under section 154 of theAct was passedon 17.03.2020 without any change which was instituted Appeal before ld. CIT (A) on 03.10.2020 with a delay of 11 months. The delay was explained by the assessee. However, the explanation of the assessee was not considered and the appeal of the assessee was dismissed without going into the merits of the case. The learned Counsel reiterated the submissions made before the learned CIT(A) and submitted that the CPC has wrongly not allowed exemption as claimed by the assessee as per section 11(2) of the Act, only because of late filing of Form No.10B. During this period, the Revenue was updating its e- portal and there were technical glitches because of this Form 10B was not filed within time. Filing of Form 10B is not mandatory but is only directory in nature. Assessee has filed after receipt of intimation for rectification under section 154 of the Act on 18.01.2020 which was disposed off on 19.03.2020 and the assessee was in hope that the CPC will rectify the mistake and he was waiting for the favourable Order. Thereafter, the covid 19 pandemic started and this was the sole reason for not filing the appeal before the learned CIT(A) within the stipulated time. 3. On the other hand, the learned DR relied on the Order of the lower authorities. 4. Considering the rival submissions, we noted that CPC processed the return of income and it has not examined as per section 11 of the Act because of late filing of Form No.10B and after processing of the return, the assessee filed rectification application under section 154 of the Act within stipulated time on 18.01.2020 which was disposed off on 19.03.2020. Thereafter, covid 19 pandemic period started. Considering the above facts, we observed that the assessee had sufficient cause for not filing appeal within the stipulated time. Accordingly, we condone the delay and considering the facts of the case and Page 3 of 3 in the interest of justice, we are remitting this issue back to the file of learned CIT(A) for fresh consideration and the assessee is directed to substantiate its claim with cogent documents for claiming exemption. We further direct learned CIT(A) to provide reasonable opportunity of being heard to the assessee and decide the issue as er law and assessee is directed not to seek unnecessary adjournments for early disposal of the case. 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Pronounced in the court on the date mentioned on the caption page. (KESHAV DUBEY) Accountant Member Bangalore, Dated : 28.04.2025. /NS/* Copy to: 1. Appellant 2. Respondent 3. Pr.CIT4.CIT(A) 5. DR, ITAT, Bangalore. By order