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Facts
The assessee was denied exemption under Section 10(23C) of the Income Tax Act, 1961, on the grounds of not filing Form 10B with their return for Assessment Year 2018-19. The assessee contended that they filed Form 10BB as per the rules for that year, and Form 10B was notified later.
Held
The Tribunal noted that the assessee had filed the correct form as per the rules applicable for the assessment year and that Form 10B was notified subsequently. Therefore, denial of exemption solely for filing the incorrect form was not justified.
Key Issues
Whether denial of exemption under Section 10(23C) is justified for non-filing of Form 10B when Form 10BB was filed as per the rules applicable for the assessment year.
Sections Cited
10(23C), 143(1), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA
Before: SRI SANJAY GARG & SRI SANJAY AWASTHI
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order of the Ld. Commissioner of income Tax (Appeals), Addl/JCIT(A)-6, Mumbai [hereinafter referred to as Ld. “CIT(A)'] dated 18.03.2024 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year 2018-19.
The assessee in this appeal is aggrieved by the action of the lower authorities in denying benefit of exemption claimed by the assessee u/s. 10(23C)(via) of the Act.
The assessee’s appeal is time barred by 30 days. A separate application for condonation of delay has been placed in file. Considering the averments made in the application, the delay in filing the present appeal is hereby condoned.
At the outset, the Ld. Counsel for the assessee has submitted that the exemption claimed by the assessee u/s. 10(23C) of the Act has been denied in an intimation passed u/s. 143(1) of the Act on the ground of non filing of Form 10B along with return. The Ld. Counsel for the assessee in this respect has submitted that the assessment year under consideration is AY 2018-19. The assessee, as per the rules for the relevant assessment year, was required to file Form 10BB which was duly filed by the assessee. That Form 10B was notified during the year 2023 onwards. The Ld. Counsel for the assessee, therefore, has submitted that the denial of exemption for filing of wrong form was factually incorrect and not justified.
the Ld. DR could not rebut the aforesaid contention of the Ld. AR.
Considering the above submission of the Ld. Counsel for the assessee, the matter is restored to the file of the Assessing Officer with a direction to allow the exemption to the assessee u/s. 10(23C) if the same is otherwise admissible. The same would not be denied only for the ground of non-filing
I.T.A. No.: 1681/KOL/2024 Assessment Year: 2018-19 MP Birla foundation Medical Society of Form 10B. With the above observation, the appeal of the assessee is treated as allowed for statistical purposes.
In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open Court on 21st February, 2025.