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Facts
The assessee, Gram Nirman Mandal, filed its return for AY 2018-19 declaring NIL income, claiming exemption under Section 10(23B). However, Form 10B was not filed with the return, citing technical issues and personal problems of the CA. The Assessing Officer disallowed exemptions, assessing income at ₹3,16,98,714/-. The CIT(Appeals) dismissed the assessee's appeal for non-prosecution.
Held
The Tribunal held that the filing of Form 10B is a procedural requirement and not mandatory, citing High Court judgments. The delay in filing was considered unintentional and due to the consultant's issues. The order of the CIT(Appeals) was set aside.
Key Issues
Whether the delay in filing Form 10B can be condoned and if its non-filing can lead to the disallowance of claimed exemptions. Whether the dismissal of appeal for non-prosecution by CIT(A) was justified.
Sections Cited
10(23B), 11, 12, 143(3), 250, 119(2)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA-PATNA ‘e-COURT’, KOLKATA
Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2018-19 dated 10.06.2025.
The assessee is in appeal before the Tribunal raising the following grounds of appeal: “1) for that, As one of the oldest and pioneer organizations of Bihar, Gram Nirman Mandal (GNM) organised by LOKNAYAK JAI PRAKASH NARAYAN in the year 1954 and runs various programs like Krishi Vigyan Kendra for maximum agriculture yields, organizing various types of training and seminars, arrangement of improved seeds, soil testing, animal husbandry, production of vermin compost and using the garden resources, etc., together with the works related to the production and sale of Khadi cotton cloths, silk cloths, bed sheets, towels, blankets, sweaters, soaps, e.t.c.
8. We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. CIT(A). The assessee has claimed to file 10B after the completion of the assessment proceeding. On account of delay in filing the appeal, the same was not considered in the appeal was dismissed on account of non-prosecution.