ASHOK PODDAR FOUNDATION,KOLKATA vs. ITO, WARD 1(4), EXEMPT, , KOLKATA

This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-1, Delhi dated 04.04.2025 [hereinafter referred to as ‘CIT(A)] for the Assessment Year 2023–24.

Brief facts of the case are that in the case of the assessee, CPC, Bengaluru disallowed an exemption of Rs.28,12,542/- and the disallowance was made on the ground that Form 10B/10BB was filed on 28.11.2023 which was only accepted by the assessee on 20.11.2023. Consequently, the addition of Rs.20.70,688/- was added to the total income of the assessee determining tax of Rs.5,64,030/- including interest of Rs.85,690/- u/s 234B of the Act and Rs.22,777/- u/s 234C of the Act.

Aggrieved by the above order, the assessee preferred an appeal before the Ld. CIT(A), where the contention of the assessee was that the Ashok Poddar Foundation denial of exemption was bad in law as Form 10BB was already filed before due date and which was accepted by the assessee later on due to confusion regarding applicability of 10B or 10BB, therefore, the delay in acceptance was unintentional and occurred due to uncertainty and also due to newly introduction of Form 10BB for the assessment year in question. However, while considering this issue, the ld. CIT(A) dismissed the appeal of the assessee by upholding the order without granting any relief to the assessee.

Dissatisfied with the above order, the assessee is in appeal before this tribunal. The learned AR submitted that Form 10BB was in fact filed before the processing of the return u/s 143(1) of the Act and while filing Form 10BB, it was filed due to confusion regarding applicability of 10B or 10BB, therefore, the delay in acceptance was unintentional and occurred due to uncertainty and also due to newly introduction of Form 10BB for the assessment year in question. Since this is a procedural error, therefore, the delay may be needed to be condoned by allowing relief to the assessee.

On the other hand, the learned Departmental Representative supported the order of the authorities below.

We have heard both sides and perused the material on record. We find that in the present case, Form 10BB was filed before the issuance of intimation u/s 143(1) of the Act and it is purely procedural lapse which cannot be defeated the benefit of exemption to the assessee. It is clearly held by the Jurisdictional High court in the case of CIT vs. M/s Indian Sugar Mills Association in ITAT/270/2023 IA No.GA/1/2023, GA/2/2023 dated 10.01.2024 wherein it was held that filing of audit report is procedural and directory in nature. We, therefore, reverse the Ashok Poddar Foundation findings of the Ld. CIT(A) and direct the Assessing Officer to grant exemption as claimed by the assessee.

In the result, the appeal of the assessee is allowed. Kolkata, the 12th August, 2025. Sd/- Sd/- [Sanjay Awasthi] [Sonjoy Sarma] लेखा सद�य/Accountant Member �या�यक सद�य/Judicial Member Dated: 12.08.2025. RS Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- , 5. CIT(DR),