SURESH SHROFF MEMORIAL TRUST,MUMBAI vs. ITO- EXEM WARD 2(2), MUMBAI, MUMBAI
What did the Tribunal hold?
The Tribunal considered the rival submissions and the material on record. It noted that the AO denied the claim for exemption and assessed the total income at Rs. 1,16,60,070/- due to the late filing of Form 10B. However, the Tribunal observed that the delay in filing Form 10B had been condoned by the CIT(E). Furthermore, the CIT(A) had passed an ex parte order. In light of these circumstances, the Tribunal was of the considered opinion that the assessee should be granted another opportunity before the Assessing Officer to substantiate its case. Consequently, the matter was restored back to the file of the AO for a de novo assessment. The Tribunal also directed the assessee to cooperate with any notices issued, keeping all issues open for adjudication. The appeal was allowed for statistical purposes.
What were the facts?
The assessee, Suresh Shroff Memorial Trust, filed its return of income for Assessment Year 2017-18 declaring NIL income. The Assessing Officer (AO), under Section 143(3) of the Income Tax Act, 1961, denied exemption under Section 11 and assessed the total income at Rs. 1,16,60,070/-. The assessee appealed to the Commissioner of Income Tax (Appeals) [CIT(A)], who passed an ex parte order confirming the addition. The assessee's primary contention before the Tribunal was that the AO denied exemption for late filing of Form 10B, despite the delay being condoned by the CIT(E). The assessee also noted that exemption was initially denied during processing under Section 143(1), a matter still pending before the AO. The Departmental Representative argued for dismissal due to non-compliance.
What were the issues?
1. Whether the Tribunal should restore the matter to the Assessing Officer for de novo assessment, considering the assessee's submission that the delay in filing Form 10B was condoned by the CIT(E) and the AO did not consider this, and that the issue of exemption denial under Section 143(1) is still pending before the AO. (Mixed question of law and fact, concerning Sections 11 and 143(3) of the Income Tax Act, 1961). Assessee's contentions: - The AO denied exemption under Section 11 for late filing of Form 10B. - The delay in filing Form 10B was subsequently condoned by the CIT(E), but the AO failed to consider this. - The issue of exemption denial during processing under Section 143(1) is still pending before the AO. Revenue's contentions: - The appeal may be dismissed as the assessee has not been compliant.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY & SHRI JAGADISH
Aforesaid appeal filed by the assessee is against the order of Learned Commissioner of Income Tax, Appeal, Mumbai [hereinafter “CIT(A)”] dated 11.07.2025 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Income Tax Act, 1961 (hereinafter “the Act”) dated 11.12.2019.
Suresh Shroff Memorial Trust 2. The assessee is a trust and filed the return of income declaring total income as NIL. The AO in the assessment order passed u/s 143(3) has denied the exemption u/s 11 and assessed the total income at Rs.1,16,60,070/-.
On appeal, the Ld. CIT(A) in an ex parte order has confirmed the addition.
The Ld. Authorised Representative (AR) at the outset has submitted that the Assessing Officer has not allowed the benefit of Section 11 as the assessee has not filed Form 10B on time. The Ld. AR has submitted that the CIT(E) has subsequently condoned the delay in filing Form 10B but the Assessing Officer has not considered the same. The Ld. AR has also submitted that the exemption was denied while processing return u/s 143(1) which has also been restored back to the file of Assessing Officer and is still pending.
The Ld. Departmental Representative (DR) submitted that appeal may be dismissed as assessee has not been compliant.
We have considered the rival submissions and perused the material available on the record. The Assessing Officer has denied the claim of exemption and assessed the total income at Rs.1,16,60,070/- for late filing of Form 10B, though, the late filing has been condoned by Ld. CIT(E). As the Ld. CIT(A) has passed the ex parte order, we are of considered opinion that the assessee should be given one more opportunity before the Assessing Officer (AO) to substantiate his case. We, accordingly restore the matter back to the file of Assessing Officer (AO) for de nova assessment. We also direct the assessee to cooperate with the notices issued where all issues are kept open for adjudication. 2 Suresh Shroff Memorial Trust 7. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced on 23rd day of January, 2026 at Mumbai.
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