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Facts
The assessee filed an appeal against an order that confirmed the denial of benefits under Section 11. The denial was due to the late filing of the audit report in Form 10B. The assessee later obtained condonation for the delay from the CIT(Exemption).
Held
The Tribunal accepted the assessee's request to withdraw the appeal as the core issue of condonation of delay was resolved. Consequently, the appeal was dismissed as withdrawn.
Key Issues
Whether the appeal becomes infructuous if the delay in filing the audit report is condoned by the CIT after the CPC-ITD processed the return without considering the benefits of Section 11.
Sections Cited
250, 11, 119(2)(b), 13(10)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI SANDEEP SINGH KARHAIL
Date of Hearing – 04/03/2026 Date of Order – 12/03/2026 O R D E R PER SANDEEP SINGH KARHAIL, J.M. The assessee has filed the present appeal against the impugned order dated 03/09/2025, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Additional/Joint Commissioner of Income Tax (Appeal) – 1, Ahmedabad, for the assessment year 2023-24.
During the hearing, the learned Authorised Representative (“learned AR”), at the very outset, submitted that the assessee seeks to withdraw (A.Y. 2023-25) St. Thomas High School the present appeal for the assessment year 2023-24. In this regard, the learned AR placed on record the letter filed by the assessee on 02.03.2026, which reads as follows: - “We respectfully refer to the above appeal filed against the Appellate Order u/s. 250 of the Act passed by the Learned Additional/Joint Commissioner of Income Tax (Appeals) - 1, Ahmedabad (hereinafter referred to CIT (Appeals)) for the Assessment Year 2023-24. The Learned C.I.T. (Appeals), has confirmed the denial of benefits of Section 11 to the Appellant by the Centralized Processing Centre, Income Tax Department Bangalore (herein after referred to as the 'CPC ITD') on the grounds that the Appellant did not furnish Audit Report in Form 10B within the prescribed time. The due date for filing of the Audit Report in Form 10B for the assessment year 2023-24 was extended up to 31 October, 2023. The Appellant Trust had e filed the Audit Report in Form No. 10B on 29.11.2023 which was delayed by 29 days. However, The Appellant Trust had e filed the Audit Report in Form No 10B on 29.11.2023 i. e. before the filing of the Return of Income for the Assessment Year 2023-24 that was e-filed before the extended due date i.e. 29th November, 2023. Meanwhile the CPC-ITD processed the Return of Income for Assessment Year 2023-24 by recomputing the Income as per the provision of Section 13(10) of the Act, 1961. The Appellant had filed a condonation petition with the Jurisdiction Commissioner of Income Tax (Exemption) Mumbai, u/s. 119(2)(b) of the Act. The learned Commissioner of Income Tax (Exemption) Mumbai, in the meantime, has accepted the said condonation petition and being convinced that the Appellant Trust had reasonable cause for the delay in filing of Audit Report in Form 10B for Assessment Year 2023-24, he has condoned the delay vide order dated 20.01.2026. Copy of the Order annexed herewith marked as Annexure '1'. In view of the above, the Appeal filed by the Appellant becomes infructuous, hence, the Appellant most humbly requests Your Honours to kindly allow the Appellant to withdraw the above appeal filed for Assessment Year 2023- 24.”
In view of the above, we accept the assessee’s request to withdraw the present appeal for the assessment year 2023-24.