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Facts
The assessee, an educational trust, was denied exemption under Section 11 of the Income Tax Act due to the belated filing of Form 10B, which was submitted approximately one month after the due date. This denial was upheld by the Ld. CIT(A). However, the delay in filing Form 10B was subsequently condoned by the Ld. CIT(E) under Section 119(2)(b) of the Act, relying on a CBDT Circular.
Held
The Tribunal acknowledged that the assessee's grievance was resolved by the CIT(E)'s order condoning the delay in filing Form 10B. Consequently, the Tribunal directed the Assessing Officer to give effect to the CIT(E)'s order expeditiously, allowing the exemption claim.
Key Issues
Denial of exemption under Sections 11/12A due to belated filing of Form 10B, despite subsequent condonation of delay by CIT(E) under Section 119(2)(b) of the Income Tax Act.
Sections Cited
Section 250, Section 11, Section 12A, 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:
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.
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.
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.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 20.03.2025