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Facts
The assessee, Gujarat University Startup and Entrepreneurship Council GUSEC, filed a nil income return, which CPC processed under Section 143(1), disallowing 15% accumulation of income and raising a demand of Rs. 4,49,350/- due to delayed filing of Form 10B. The CIT(A) dismissed the assessee's appeal.
Held
The Tribunal acknowledged the assessee's claim of technical glitches and a change in management as reasons for the delay in filing Form 10B. It held that the delay was not deliberate and should be condoned, remanding the matter back to the CIT(A) to accept Form 10B and adjudicate the issue appropriately.
Key Issues
Whether the delay in filing Form 10B for claiming accumulation of income should be condoned, given reasons like technical glitches and change in management, and whether the CIT(A) should re-adjudicate the disallowance based on the accepted Form 10B.
Sections Cited
143(1), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH
Before: Dr. BRR Kumar & Ms. Suchitra Kamble
आदेश/ORDER Per Suchitra Kamble, Judicial Member:
This is an appeal filed against the order dated 07-02- 2025 passed by CIT(A)/Addl/JCIT(A)-2, Gurugram for assessment year 2023-24.
The grounds of appeal
are as under:- “1. The assessment order passed u/s 143(1) of Income Tax Act by the Assessing Officer and confirmed by the first appellate authority u/s 250 is bad in law and deserved to be uncalled for.
2. The assessing officer as well as first appellate authority, has erred in law and on facts in making and confirming respectively the disallowance of expenditure of Rs. 41,31,250/-. The same deserves to be deleted.
Gujarat University Startup & Entrepreneurship Council, A.Y. 2023-24 The appellant craves to reserve his right to add, alter, amend, or delete any ground of appeal during the course of hearing. Total Tax Effect Rs. 4,49,350/-”
3. The return of income was filed by the assessee on 30-12- 2023 declaring total income at Rs. nil. The return of assessee was processed at CPC, Bengaluru and demand of Rs. 4,49,350/- was raised by CPC on 29-10-2024 vide intimation order u/s. 143(1) dated 29-10-2024. The Assessing Officer disallowed the amount accumulated or set apart up to 15% claimed by the assessee for the assessment year 2023-24.
4. Aggrieved by the additions made by the CPC, Bangalore, the assessee filed appeal before the CIT(A) and the CIT(A) dismissed the appeal of the assessee.
The ld. A.R. submitted that the CIT(A) has mentioned that trust are obligated to file Form 10B which is mandatory and the assessee trust has submitted the Form 10B on 30-08-2023 while the dead line for filing Form 10B one month prior to the due date submitting the return. The due date for submitting the return in case of the assessee was 30-11-2023 and there was a delay of two months in filing the Form 10B. The A.R. submitted that due to technical glitches, the assessee could not file Form 10B within the stipulated time and also along with the return of income on 30-11-2023. The ld. A.R. therefore submitted that the said delay be condoned and Form 10B should be accepted and accordingly accept the income of the assessee counsel as per return of income filed by the assessee counsel.
The ld. D.R. relied upon the intimation order dated 29-10- 2024 and the order of the CIT(A).
We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee has filed the audit report in From 10B on 30-12- 2023 thereby submitted the same after two months as per the statutory date. The assessee counsel submitted that there was a change in the management in 2023 (F.Y. 2023-24) and therefore the statutory Form 10B could not be filed within the stipulated date as well as with the return of income. Therefore, the delay was not deliberate or intentional and hence Form 10B should have been taken on record. Therefore, we remand back the matter to the file of CIT(A) and consider Form 10B and the delay is condoned. The CIT(A) will adjudicate the matter after taking into account Form 10B and pass the appropriate order.
In the result, the appeal of the assessee is partly allowed for statistical purpose.
Order pronounced in the open court on 30-05-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 30/05/2025 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद