LOKA RAKSHAKA SOCIETY,KOLLAM vs. ITO, EXEMPTION WARD, KOLLAM

This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-3, Bengaluru dated 24.01.25 for the assessment year 2023–24.

Brief Facts of the Case are that the assessee filed its return of income on 02.11.2023, declaring nil income. The audit report in Form No. 10B was filed on 30.10.2023. The CPC, however, passed an intimation under section 143(1) of the Income-tax Act, 1961, assessing the total income of the assessee at Rs. 95,16,957, disallowing:

Aggrieved by the above order the assessee filed an appeal before the Ld.CIT(A), which was dismissed, upholding the order of the CPC.

At the time of hearing, the Ld. AR submitted that the form 10B was mistakenly filed instead of Form 10BB due to a bona fide error by the Chartered Accountant. As per the amended rules applicable from A.Y. 2023–24, Form 10BB is required to be filed where gross receipts are less than Rs. 5 crores, and No foreign contribution is received. In the present case of the assessee’s gross receipts were only Rs. 33.2 lakhs, and no foreign contribution was received, though the society had FCRA registration and the audit report was initially filed in Form 10B on 31.10.2023 and later revised in Form 10BB on 11.01.2025. In this regard an affidavit from the Chartered Accountant has been submitted acknowledging the mistake. The Ld. AR further stated that the issue is squarely covered by the decision of the ITAT Pune Bench in the case of Savitribai Phule Shikshan Prasarak Mandal, dated 07.01.2025, where it was held that such technical error in filing Form 10B instead of Form 10BB should not result in denial of exemption.