Loading judgment…
Facts
The assessee, Good Shepherd Monastery Society, filed its return for AY 2023-24 claiming Section 11 exemption, resulting in Nil income. However, the CPC, processing under Section 143(1), disallowed the exemption and assessed income at Rs. 8,15,025/- due to the belated submission of the audit report in Form 10B/10BB. The CIT(A) upheld this disallowance.
Held
The Tribunal observed that the condition of filing the audit report in Form 10BB is a condition precedent for claiming exemption under Section 11. Belated submission amounts to an incorrect claim as defined under the Explanation to Section 143(1). Despite not finding merit in the specific ground of appeal, the Tribunal ultimately partly allowed the appeal.
Key Issues
Whether the disallowance of exemption under Section 11 of the Income Tax Act, 1961, due to the belated submission of the audit report in Form 10BB, is justified under Section 143(1).
Sections Cited
11, 12A, 139(1), 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH
BEFORE SHRI INTURI RAMA RAO, AM ITA No. 212/Coch/2025 Assessment Year: 2023-24 Good Shepherd Monastery Society .......... Appellant KMC/No. IX/319, St. Joseph Covent Junction Railway Station Roax, Kottayam 696001 [PAN: AAATG8477F] vs. The Income Tax Officer .......... Respondent Ward - 1, Kottayam
Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R.
Date of Hearing: 26.03.2025 Date of Pronouncement: 08.04.2025
O R D E R This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-4, Chennai [CIT(A)] dated 29.01.2025 for Assessment Year (AY) 2023-24.
Brief facts of the case are that the appellant filed the return of income for AY 2023-34 on 18.11.2023 declaring Nil income after claiming exemption u/s. 11 of the Income Tax Act, 1961 (the Act). The said return of income was processed by the CPC u/s. 143(1) vide intimation u/s. 143(1) of the Act on 25.11.2024 assessing the total income at Rs. 8,15,025/- by denying exemption u/s. 11 of the Act for the
2 ITA No. 212/Coch/2025 Good Shepherd Monastery Society reason that the audit report in Form 10B of the Act was submitted belatedly.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.
Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal.
When the appeal was called on nobody appeared on behalf of the assessee despite due service of notice of hearing. Therefore, I proceeded to dispose of the appeal after hearing the learned Sr. DR.
The appellant society was duly registered u/s. 12A of the Act. The appellant filed the return of income before the due date prescribed u/s. 139(1) of the Act after claiming exemption u/s. 11 of the Act. However, admittedly the appellant trust had filed the prescribed audit report in Form 10BB belatedly, whereas the return of income was processed u/s. 143(1) of the Act vide intimation dated 25.11.2024 after making adjustment by disallowance of claim for exemption u/s. 11 of the Act on the ground that the prescribed audit report was not filed before the specified date, i.e. one month before the due date for filing the return of income u/s. 139(1) of the Act. The condition of filing of audit repot in the prescribed form, i.e. Form 10BB is a condition precedent for filing claim u/s. 11 of the Act. The claim for exemption u/s. 11, in the absence of prescribed audit report, amounts to incorrect claim a defined under Explanation
3 ITA No. 212/Coch/2025 Good Shepherd Monastery Society to sub-section (1) of section 143 of the Act. Therefore, I do not find any merit in the ground of appeal filed by the assessee. Act.
In the result, the appeal filed by the assessee stands partly allowed.
Order pronounced in the open court on 8th April, 2025.
Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 8th April, 2025 n.p. Copy to:
The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order
Assistant Registrar ITAT, Cochin