TEHMINA K KATRAK CHARITABLE TRUST ,MUMBAI vs. ITO WARD 2(4), MUMBAI

ITA 549/MUM/2026Status: DisposedITAT Mumbai12 March 2026AY 2021-229 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Additional/Joint Commissioner of Income Tax (Appeals) erred in dismissing the assessee's appeal. The Tribunal found that the assessee had attempted to file Form 10B on January 11, 2022, along with the return of income, which was within the extended due date. The delay in its reflection on the portal was attributed to technical issues with the new income tax portal, a fact recognized by CBDT Circular No. 1/2022 which relaxed timelines. The Tribunal noted that the CPC Assessing Officer initially accepted the assessee's explanation and processed the return allowing the exemption under Section 11 vide an intimation order dated August 10, 2022. Subsequently, the CPC-Assessing Officer invoked Section 154 to rectify this intimation, disallowing the exemption. The Tribunal held that this rectification was without jurisdiction as it sought to adjudicate a disputed question of fact and review a prior decision, especially without affording the assessee an opportunity of being heard as required by Section 154(3). Therefore, the rectification order was set aside, and the initial intimation order was restored. Grounds 1, 2, 3, 5, and 6 were allowed, and Ground 4 was dismissed as infructuous.

What were the facts?

The assessee, Tehmina K. Katrak Charitable Trust, filed an appeal against the order of the Additional/Joint Commissioner of Income Tax (Appeals), Mysore, who dismissed the assessee's appeal against an order passed under Section 154 of the Income Tax Act, 1961, for Assessment Year 2021-2022. The dispute centers on the denial of exemption under Section 11 of the Act due to the alleged belated filing of Form 10B. The assessee claimed to have filed Form 10B on January 11, 2022, along with the return of income, but it was not reflected on the portal due to technical glitches. Consequently, it was refiled on February 19, 2022. The initial intimation under Section 143(1) accepted the exemption, but a subsequent rectification order under Section 154 denied it.

What were the issues?

1. Whether the assessee is eligible for exemption under Section 11 of the Income Tax Act, 1961, despite the alleged delay in filing Form 10B? 2. Whether the delay in filing Form 10B is fatal to the claim for exemption under Section 11 of the Act, considering the provisions of Section 12A(1)(b) and the applicability of CBDT Circular No. 01/2022? 3. Whether the rectification order passed under Section 154 of the Act, denying the trust exemption, was without jurisdiction as it did not constitute a 'mistake apparent from record'? Assessee's contentions: The assessee argued that Form 10B was filed within the extended due date of March 15, 2022, as per CBDT Circular No. 01/2022. They contended that the initial filing on January 11, 2022, was hampered by technical glitches on the new portal, and refiling on February 19, 2022, should not disentitle them to substantive exemption. They relied on the principle that the requirement of filing Form 10B is directory and procedural, and any delay is condonable. Furthermore, they argued that the Section 154 rectification was without jurisdiction. Revenue's contentions: The revenue contended that Form 10B was finally uploaded on February 19, 2022, which was belated, leading to the denial of exemption.

Which sections of the Income-tax Act were involved?

Section 11,Section 154,Section 12A(1)(b),Section 119,Section 139(1),Section 143(1),Section 154(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, H (SMC

Per Rahul Chaudhary, Judicial Member:

1.

The present appeal has been preferred by the Assessee against the Order, dated 11/11/2025, passed by the Additional/Joint Commissioner of Income Tax (Appeals), Mysore [hereinafter referred to as the 'CIT(A)'], whereby the Learned CIT(A) had dismissed the appeal of the Assessee against the Order, dated 15/03/2022, passed under Section 154 of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'], for the Assessment Year 2021-2022. 2. The Assessee has raised following grounds of appeal:

"

1.

That the Ld.

The order continues below.

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