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Facts
The assessee filed an updated return disclosing gross receipts and claiming expenses, resulting in a declared income after claiming deduction u/s 11. Due to belated filing of the return and audit report, the CPC denied the exemption u/s 11 and taxed the entire receipt. The CIT(A) dismissed the assessee's appeal.
Held
The Tribunal found that the assessee's return and audit report were filed belatedly, leading to the denial of exemption. The Tribunal set aside the order of the CIT(A) and remanded the matter to the Assessing Officer.
Key Issues
Whether the assessee is eligible for exemption u/s 11 despite belated filing of return and audit report. Whether the grounds related to condonation of delay and alternative ground for computing tax at normal rates were properly considered.
Sections Cited
11, 12AB, 143(1)
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Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
Assessment Year : 2022-23 Vivekanand Shikshan Vs. ITO, Exemption Ward- Prasarak Mandal, 1(2), Pune. Opp. Maruti Mandir, Malshiras, Solapur, Pune- 413107. PAN : AAATV6045L Appellant Respondent Assessee by : None Revenue by : Shri Vinod Pawar Date of hearing : 30.10.2025 Date of pronouncement : 10.12.2025 आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 14.07.2025 passed by Ld. Addl./JCIT(A), Thiruvanantpuram [‘Ld. CIT(A)’] for the assessment year 2022-23.
The appellant has raised the following grounds of appeal :-
1. On the facts and the circumstances of the case and in law, lower authorities erred in passing the order without considering the Assessee has filed the Application for condonation of delay in filing ITR Form & 108, disregarding the request of adjournment response, this action is being violative of principal of natural justice. Without prejudice to the above grounds of appeal
, following grounds are also taken on merit
2. On the facts and the circumstances of the case and in law, lower authorities erred in making an addition of Rs. Rs. 1,38,43,970/- to the income of assessee disregarding the Audit Report in Form 10B, without appreciating the facts of the case. Appellant prays for deletion of entire addition
3. On the facts and the circumstances of the case and in law, lower authorities erred in not considering the ground of computing the tax at normal rate of taxation on net surplus income as per normal provisions of the Act in case the Form 10B is disregarded. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal before or during the course of hearing in the interest of natural justice.”
3. Facts of the case, in brief, are that the assessee furnished an updated return wherein gross receipt of Rs.1,38,95,450/- was disclosed and expenditure of Rs.1,38,27,721/- was claimed accordingly an income of Rs.51,480/- was disclosed for the period under consideration after claiming deduction u/s 11 of the IT Act. Since the return of income as well as Form 10B audit report was furnished belatedly i.e. on 30.11.2023 the CPC vide intimation issued u/s 143(1) dated 09.12.2024 determined taxable income of Rs.1,38,95,450/- by denying the claim of exemption u/s 11 of the IT Act as made by the assessee.
Being aggrieved the assessee preferred an appeal before the Ld. CIT(A). After considering the written submission of the assessee, Ld. CIT(A) dismissed the appeal filed by the assessee.
It is the above order against which the assessee is in appeal before the Tribunal.
When the appeal was called for hearing neither anybody appeared from the side of the assessee nor any application for adjournment was filed despite due service of notice of hearing upon assessee. Accordingly, we proceed to decide the appeal after hearing Ld. DR and also on the basis of material available on record.
In this regard, we find that the assessee claims to be registered u/s 12AB of the IT Act, however return of income as well as Form 10B audit report was furnished belatedly and due to this reason the CPC treated whole of the receipt as income of the assessee denying the claim of exemption u/s 11 of the IT Act as made by the assessee. Before Ld. CIT(A) it was submitted that the application for Form 10B audit report is pending before the Pr Commissioner of Income Tax however the submission and adjournment request was rejected and without deciding the alternative ground raised
with regard to allowance of expenditure as per normal provision of the Income Tax Act the appeal was dismissed.
8. Considering the totality of the facts of the case and in the interest of justice, we deem it appropriate to set-aside the order passed by Ld. CIT(A) and remand the matter to the file of the Jurisdictional Assessing Officer with a direction to tax at normal rates of the surplus, if any, after verifying the claim of expenses made by the assessee in the return of income as per normal provisions of the Income Tax Act after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to appear before the Jurisdictional Assessing Officer in this regard and to produce necessary details required by the Assessing Officer with regard to claim of expenses during the period under consideration without taking any adjournment under any pretext otherwise the Jurisdictional Assessing Officer shall be at liberty to