INDIAN EX SERVICES LEAGUE (W.B.),KOLKATA vs. I.T.O., (EXEMPTION), WARD - 1(1), KOLKATA

Brief facts of the case of the assessee is that the assessee engaged in charitable activities of economy upliftment of ex-serviceman. The assessee filed return of income for the AY 2022-23 declaring total income of Rs. Nil. The said return of income was Assessment Year: 2022-23 Indian Ex-Services Leave (W.B) processed u/s 143(1) wherein the AO /CPC disallowed exemption claimed u/s 11 of Rs. 1,28,08,890/-. Subsequently, the assessee filed rectification application before the AO/CPC that has also been rejected by the AO.

The assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been partly allowed as exemption claimed u/s 11 has been dismissed by the Ld. CIT(A).

The Ld. Counsel of the assessee challenges the impugned order thereby submitting that the assessee has submitted the audit report on 25.09.2022, however, because of some technical glitch it was not able to upload the audit report in form no. 10B on the system and it was accepted on 11.10.2022. The Ld. Counsel submits that due to the technical glitch the assessee was prevented to upload the audit report in due time. His further argument is that it has been held by several judicial pronouncement, that submission of Form no. 10B is not mandatory rather it is directory.

Contrary to that the ld. D.R supports the impugned order.

Upon hearing the submission of the counsel of the respective parties, we have perused the facts of the assessee and find that there is no dispute that the assessee is a society of ex-service man registered under West Bengal Societies Act, 1961. The assessee has claimed exemption u/s 11 being a charitable society that has been rejected by the AO confirmed by the Ld. CIT(A) only on this ground that Form no. 10B has belatedly been filed. We have gone through the order passed in this aspect, we find that the decision of Co-ordinate Bench of Kolkata in the case of Kaydee Foundation vs. ITO in for AY 2022-23 dated 31.12.2024 and it has been held that filing of form no. 10B is directory in nature and that can be condoned. The order passed in the above judgment in was passed on the order passed by the Co-ordinate Bench of Kolkata in the case of Manav Seva Trust vs. CIT(E ) in ITA No. 909/Kol/2024 dated 26th July, 2024. Going over the facts of the case as well as Assessment Year: 2022-23 Indian Ex-Services Leave (W.B) judicial pronouncement in this context delay in filing Form no. 10B is hereby condoned. The AO is directed to allow exemption to the assessee as per law. Case of the assessee is restored in the file of the A.O.