MATRUBHUMI EDUCATION TRUST,CHIKHLI NA vs. ARIVS.ITO, EXEMPTION WARD, SURAT
Facts
The assessee trust's exemption under Section 11 of the Income-tax Act, 1961 was denied due to a delay in filing the audit report in Form No. 10B. The report was due by October 7, 2022, but was filed on October 20, 2022. The delay was attributed to a trustee's medical treatment.
Held
The Tribunal noted that the Assessing Officer cannot condone such delays, but the jurisdictional Commissioner of Income-tax (Exemptions) can. The appeal was restored to the CIT(A) with a direction for the assessee to seek condonation of delay from the CIT(E) or PCIT(E).
Key Issues
Whether the denial of exemption under Section 11 due to delayed filing of Form 10B was justified, and if the matter should be remanded for condonation of delay.
Sections Cited
11, 139(1), 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, SURAT BENCH “DB” SURAT
Before: SHRI SANDEEP GOSAIN & SHRI OM PRAKASH KANT
IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH “DB” SURAT
BEFORE SHRI SANDEEP GOSAIN (JUDICIAL MEMBER) AND SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER)
ITA No. 351/SRT/2025 Assessment Year: 2022-2023 Matrubhumi Education Trust, Addl/JCIT(A) Bhubaneshwar, AT&PO Hukeri Via Rankuwa, Tal Odisha-751007. Chikhli, Navsari-396560. Vs. PAN NO. AAETM 4713 A Appellant Respondent : Ms. Sanjay S. Kotian, AR Assessee by : Mr. Ajay Uke, Sr. DR Revenue by
Date of Hearing : 07/10/2025 Date of pronouncement : 30/10/2025
ORDER PER OM PRAKASH KANT, AM
This appeal by the assessee is preferred against order dated 22.01.2025 passed by the Ld. Addl./Joint Commissioner of Income-tax (Appeals) [hereinafter shall be referred as ‘the Ld. CIT(A)’] for assessment year 2022-23.
We have heard rival submission of the parties and perused the relevant material on record. In the instant case, the Assessing Officer has denied exemption u/s 11 of the Income-tax Act, 1961 (in short ‘the Act’) provided to the Trust, due to delay in filing of audit report in Form No. 10B. Under the provisions of the Act, the assessee was required to file Form No. 10B at least one
ITA No. 351/SRT/2025 ITA No. 351/SRT/2025 2 Matru Bhumi Education Trust Matru Bhumi Education Trust
month before the due date prescribed for filing return of income before the due date prescribed for filing return of income before the due date prescribed for filing return of income u/s 139(1) of the Act. The due u/s 139(1) of the Act. The due date for filing the return of income for filing the return of income for the concerned year was e for the concerned year was extended up to 07.11.2022 and xtended up to 07.11.2022 and therefore, the audit report should have been filed by the assessee therefore, the audit report should have been filed by the assessee therefore, the audit report should have been filed by the assessee on or before 07.10.2022 on or before 07.10.2022 as per the provisions of section 12A of as per the provisions of section 12A of the Act. However, the appellant has filed the report on the Act. However, the appellant has filed the report on the Act. However, the appellant has filed the report on 20.10.2022 which has resulted into withd which has resulted into withdrawal of the benefit of rawal of the benefit of exemption u/s 11 of the Act. We find that the Ld. CIT(A) has exemption u/s 11 of the Act. We find that the Ld. CIT(A) has exemption u/s 11 of the Act. We find that the Ld. CIT(A) has noted that the Assessing Officer was not empowered to condone noted that the Assessing Officer was not empowered to condone noted that the Assessing Officer was not empowered to condone the delay and said power the delay and said power vests with the Jurisdictional with the Jurisdictional Commissioner of Income Commissioner of Income-tax (Exemptions)/ Pr. Commissio (Exemptions)/ Pr. Commissioner of Income Tax (Exemptions) Income Tax (Exemptions). The Ld. Counsel for the assessee . The Ld. Counsel for the assessee submitted that delay in filing the audit report was not intentional submitted that delay in filing the audit report was not intentional submitted that delay in filing the audit report was not intentional and due to the reason and due to the reasons that during the month of September, that during the month of September, 2022 assessee trustee was undergoing for medical treatment 2022 assessee trustee was undergoing for medical treatment 2022 assessee trustee was undergoing for medical treatment hence unable to comply the audit detail in due time. unable to comply the audit detail in due time. unable to comply the audit detail in due time. In view of above facts and circumstances, we restore this appeal back to the above facts and circumstances, we restore this appeal back to the above facts and circumstances, we restore this appeal back to the file of the Ld. CIT(A) with the direction to the assessee to file file of the Ld. CIT(A) with the direction to the assessee to file file of the Ld. CIT(A) with the direction to the assessee to file necessary applicatio necessary application before the Ld. CIT(E) or PCIT(E) n before the Ld. CIT(E) or PCIT(E) for condonation of the delay and once delay in filing ation of the delay and once delay in filing ation of the delay and once delay in filing Form 10B is condoned, the assessee may inform the Ld. CIT(A) for deciding the assessee may inform the Ld. CIT(A) for deciding the assessee may inform the Ld. CIT(A) for deciding the matter on merit. Accordingly, we set aside the order of the Ld. the matter on merit. Accordingly, we set aside the order of the Ld. the matter on merit. Accordingly, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Ld. CIT(A). CIT(A) and restore the matter back to the file of the Ld. CIT(A). CIT(A) and restore the matter back to the file of the Ld. CIT(A).
ITA No. 351/SRT/2025 ITA No. 351/SRT/2025 3 Matru Bhumi Education Trust Matru Bhumi Education Trust
In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced by way display o Order pronounced by way display of result on notice f result on notice board on 30/10/2025 under Rule 34(4) of ITAT Rules, 1963. /10/2025 under Rule 34(4) of ITAT Rules, 1963. /10/2025 under Rule 34(4) of ITAT Rules, 1963.
Sd/- Sd/ Sd/- (SANDEEP GOSAIN (SANDEEP GOSAIN) (OM PRAKASH KANT OM PRAKASH KANT) JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 30/10/2025 Rahul Sharma, Sr. P.S. (on Tour) Copy of the Order forwarded to Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Surat 5. Guard file. BY ORDER, BY ORDER, //True Copy// (Assistant Registrar) Registrar) ITAT, Surat ITAT, Surat
