PARTH SARTHI BALY SHILPI EDUCATIONAL TRUST,VAISHALI, HAJIPUR vs. CPC, BENGALORE

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ITA 556/PAT/2024Status: DisposedITAT Patna20 March 2025AY 2020-213 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal considered the submissions of both parties and the documents on record. It was evident that the assessee's grievance was settled in principle due to the condonation of delay in filing Form 10B by the Ld. CIT(E) under Section 119(2)(b) of the Act. Consequently, the Tribunal disposed of the appeal by directing the AO to give consequential effect to the order of the Ld. CIT(E) expeditiously. The Tribunal found that the core issue of the belated filing of Form 10B was resolved by the condonation order. The appeal was allowed for statistical purposes, with the operative direction being for the AO to implement the condonation order.

What were the facts?

The assessee, Parth Sarthi Baly Shilpi Educational Trust, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Patna Bench, against the order of the Ld. Commissioner of Income Tax (Appeals) dated 28.06.2024. The assessment year in question is 2020-21. The primary issue was the denial of exemption under Section 11 of the Income Tax Act, 1961, by the Assessing Officer (AO) due to the belated filing of Form 10B. The Ld. CIT(A) had confirmed the AO's action. During the appeal proceedings, the assessee's counsel submitted that the delay in filing Form 10B had been condoned by the Ld. CIT(E), Patna, vide an order dated 27.02.2025, passed under Section 119(2)(b) of the Act. The Department's counsel acknowledged that the grievance was settled with the passing of this order.

What were the issues?

1. Whether the assessee is eligible for exemption under Section 11 of the Income Tax Act, 1961, when Form 10B was filed belatedly. The assessee argued that the delay in filing Form 10B has been condoned by the Ld. CIT(E) under Section 119(2)(b) of the Act, citing CBDT Circular No. 16/2024 dated 18.11.2024, which permits condonation of such delays. Therefore, the exemption should be allowed. The revenue acknowledged that the passing of the order under Section 119(2)(b) settled the assessee's grievance.

Which sections of the Income-tax Act were involved?

Section 11,Section 250,Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “PATNA” BENCH PATNA

Date of concluding the hearing : 12.03.2025 Date of pronouncing the order : 20.03.2025 O R D E R

PER SANJAY AWASTHI, ACCOUNTANT MEMBER:

1.

The present appeal arises from order of Ld. Commissioner of Income Tax (Appeals), Addl./JCIT(A)-2, Gurugram [hereafter “the Ld. CIT(A)”], passed u/s 250 of the Income Tax Act, 1961 (hereafter ‘the Act’) dated 28.06.2024.

1.1 In this case, right at the outset, the Ld. AR pointed out that the Ld. AO denied the claim of exemption u/s 11 of the Act on the ground that Form 10B was filed belatedly on 14.02.2021, that is about after a month of the due date. On this basis the Ld. CIT(A) confirmed the action of Ld. AO.

1.2 On the last date of hearing, the Ld. AR pointed out that the delay in filing of Form 10B was condoned vide order of Ld. CIT(E), Patna, dated “1. That the issue in this appeal relates to disallowance of exemption u/s 12A on the ground that there was delay in filing of form-10B.

2. That CBDT has issued a circular bearing no-16/2024 dated-18/11/2024, according to which the delay in filing of audit report in form-10B can be condoned.

3. That the appellant had moved an application for condonation of delay as per the terms of the circular and the delay has been condoned as per order dated- 27/02/2025. Copy of the order is enclosed.

4.

That the appellant humbly prays that suitable directions may kindly be issued to the learned A.O. for allowing the exemption u/s 12A in view the order passed u/s 119(2)(b) for condonation of delay and the appeal may kindly be allowed. It is therefore, humbly prayed that necessary order may kindly be passed. For this, the appellant shall pray.” 1.3 The Ld. DR pointed out that with the passing of necessary orders u/s 119(2)(b) of the Act, the grievance of the assessee was settled.

2.

We have considered the averments of Ld. AR and also gone through the documents before us. It is clear that in principle the grievance of the assessee is settled and hence we dispose of this matter by directing the Ld. AO to given consequential effect to the Ld. CIT(E)’s order u/s 119(2)(b) of the Act, expeditiously. We direct accordingly.

3.

In the result, appeal filed by the assessee is allowed for statistical purposes.

Order pronounced on 20.03.2025

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