DR. G. ATHMALINGAM MEDICAL AND EDUCATIONAL TRUST,CHENNAI vs. ITO, EXEMPTIONS WARD-3,, CHENNAI

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ITA 611/CHNY/2025Status: DisposedITAT Chennai30 April 2025AY 2016-174 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee's appeal should be allowed. The Tribunal noted that the CPC had disallowed the exemption under Sections 11 & 12 because Form 10B was not filed by the due date. The assessee had filed Form 10B belatedly on November 10, 2016. The Tribunal referred to CBDT Circular No. 10 of 2019, which condoned the delay in filing Form 10B for AY 2016-17 and AY 2017-18 in cases where the audit report was obtained before filing the return of income and was furnished after the return but before the time allowed under Section 139 of the Act. The Tribunal found that the assessee had filed Form 10B within the due date prescribed under Section 139(4) of the Act. Therefore, the delay was considered condoned as per the CBDT circular. The Tribunal reversed the order of the Addl. CIT(A) and directed the Assessing Officer to allow the benefit of Sections 11 & 12 of the Act, considering Form 10B filed within the prescribed date.

What were the facts?

The assessee, Dr. G. Athmalingam Medical and Educational Trust, filed its return of income for Assessment Year 2016-17 on November 10, 2016, declaring nil income. The CPC, however, denied the claim for exemption under Sections 11 & 12 of the Income-tax Act, 1961, and determined a total income of Rs. 29,99,127. This denial was based on the ground that Form 10B was not filed within the due date prescribed under Section 139(1) of the Act, which was October 17, 2016. The assessee appealed to the Addl. CIT(A), arguing that the delay in filing Form 10B was condoned by CBDT Circular No. 10 of 2019. The Addl. CIT(A) dismissed the appeal.

What were the issues?

1. Whether the delay in filing Form 10B for AY 2016-17, which was filed belatedly on November 10, 2016, stands condoned under CBDT Circular No. 10 of 2019, thereby entitling the assessee to exemption under Sections 11 & 12 of the Income-tax Act, 1961? Assessee's contention: The assessee argued that the delay in filing Form 10B was condoned by CBDT Circular No. 10 of 2019, and therefore, the exemption under Section 11 of the Act ought to have been allowed. Revenue's contention: The revenue relied on the orders of the lower authorities and argued that the CBDT circular condoned the delay in filing Form 10B only in cases where the return of income was filed within the time provided under Section 139(1) of the Act.

Which sections of the Income-tax Act were involved?

Section 11,Section 12,Section 139(1),Section 139(4),Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH

Hearing: 23.04.2025Pronounced: 30.04.2025

आदेश / O R D E R

PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2016-17 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-2, Ludhiana [hereinafter “Addl. CIT(A)”] dated 30.12.2024.

2.

The assessee is a trust and filed its return of income on 10.11.2016, declaring total income at Rs. Nil. However, the CPC vide intimation u/s. 143(1) of the Income-tax Act, 1961 (hereinafter “the Act”) denied the claim of exemption u/s. 11 & 12 of the Act and determined total income of Rs. 29,99,127/-, for the reason that form 10B was not filed within due date prescribed u/s. 139(1) of the Act, i.e., on 17.10.2016. Aggrieved, the assessee filed an appeal before Ld. Addl. CIT(A), contending that the delay in filing Form-10B for A.Y 2016-17 stood condoned in terms of CBDT Circular No.10 of 2019.

However, the Ld. Addl. CIT(A) had dismissed the appeal.

3.

The Ld. Authorized Representative (A.R) of the assessee has submitted that the delay in filing Form-10B has been condoned by CBDT Circular No.10 of 2019 and hence, exemption u/s. 11 of the Act ought to have been allowed.

4.

On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities and argued that the CBDT circular condoned the delay in filling Form 10B, only in those cases where return was filled within the time provided in section 139(1) .

5.

We have heard the rival submissions, and perused the materials available on record. The CPC in the intimation u/s 143(1) of the Act has disallowed the claim of exemption us/. 11 & 12 of the Act as assessee has not filled Form-10B within the due date. The Ld. AR has submitted that assessee has filled Form 10B belatedly on 10.11.2016 and CBDT vide Circular No.10 of 2019 dated 20.05.2018 has condoned the delay in filing Form-10B for A.Y 2016-17 & A.Y 2017-18 in cases where the audit report was obtained before filing of return of income and was furnished after the return, but before the time allowed specified u/s. 139 of the Act. In the present case, the assessee has filed Form 10B within the due date prescribed u/s. 139(4) of the Act, therefore covered by the CBDT circular and delay in filing Form 10B stands condoned. We, therefore reverse the order of Ld. Addl CIT(A) and direct the A.O to allow the benefit of Section 11 & 12 of the Act considering the Form 10B filed within the prescribed date. In view of the above, the appeal filed by the assessee is allowed.

6.

In the result, the appeal filed by the assessee is allowed. Order pronounced on 30th April, 2025.

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