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Facts
The assessee, an educational society, filed its Income Tax Return for AY 2018-19 and Form 10BB claiming exemption under Section 10(23C)(vi) after the prescribed due dates. The CPC/AO processed the return under Section 143(1)(a) and disallowed the exemption, which was subsequently upheld by the CIT(A), primarily due to the late filing of the return and the audit report.
Held
The Tribunal held that the filing of the auditor's report (Form 10BB) and the return of income is a procedural requirement and should be considered directory in nature, not mandatory, especially since the report was available to the Assessing Officer during processing. The Tribunal set aside the CIT(A)'s order and remitted the matter back to the AO for fresh consideration of the exemption claim.
Key Issues
Whether the exemption claimed under Section 10(23C)(vi) can be denied solely due to the late filing of the Income Tax Return and the audit report (Form 10BB), and whether such filing requirements are mandatory or directory.
Sections Cited
250, 143(1), 10(23C)(vi), 143(1)(a), 10, 143(3), 139(1), 234A, 119(2)(b), 11
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Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
order
: 10-September-2025 ORDER
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Addl/JCIT(A)-Panaji [hereinafter referred to as Ld. ‘Addl/JCIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2018-19 dated 19.03.2025, which has been passed against the intimation order u/s 143(1) of the Act, dated 18.03.2020.
The assessee has raised the following grounds of appeal before the Tribunal:
1. That on the facts and in the circumstances of the case, the learned Addl./JCIT (Appeals) erred in not setting aside Intimation dated March 18, 2020 issued by CPC as illegal, invalid and bad in law.