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Facts
For AY 2017-18, the CPC denied exemption under sections 11 & 13 to the assessee, an educational institution, treating all receipts as income. This was due to perceived confusion regarding the filing of Forms 10B/10BB, even though the assessee had filed Form 10BB along with the return before the due date, and the stricter one-month prior filing requirement came into effect later (01.04.2021).
Held
The Tribunal held that the intimation issued under section 143(1) denying exemption was unsustainable because the assessee, an educational institution, had filed Form 10BB along with the return before the due date for AY 2017-18. The stricter requirement for filing Form 10B/10BB one month prior to the return came into effect only from April 1, 2021, and was not applicable to the impugned assessment year. The appeal of the assessee was allowed.
Key Issues
Whether the denial of exemption under sections 11 & 13 to an educational institution through an intimation under section 143(1) for AY 2017-18 was valid, considering the assessee filed Form 10BB with the return before the due date and the one-month prior filing requirement came into effect later.
Sections Cited
Section 11, Section 13, Section 143(1)
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 31.03.2025, passed by ld. Addl/JCIT(A)-2, Kolkata, for the assessment year 2017-2018. 2. It was the submission of the ld. AR that the impugned assessment year is 2017-2018. The CPC had treated the entire receipts of the assessee as income of the assessee and has denied the benefit of exemption u/s.11 & 13 of the Act. It was the submission that the CPC was confused in respect of filing of Form 10B and 10BB of the Act. It was the submission that the assessee is running an educational institution and the assessee has filed Form 10BB along with the return of income. It was the submission that the requirement of the filing of Form 10B/10BB, one month before the filing of the return was brought into effect by the Finance Act, 2021 w.e.f. 01.04.2021. It was the submission that for the impugned assessment year the intimation is erroneous and liable to be quashed.
In reply, ld. Sr. DR vehemently supported the order of the ld.AO & ld. CIT(A). It was the submission that the issue should be restored to the file of ld. Addl/JCIT(A) for readjudication afresh.
We have considered the rival submissions. As it is noticed and admittedly the assessee has not represented before the ld. Addl/JCIT(A) during the course of appellate proceeding, however, it is noticed that the issue in this appeal is very small and it would be unnecessary waste of judicial time by restoring the issue to the file of ld. Addl/JCIT(A) for such matter. Therefore in the interest of justice, the appeal is heard and disposed off in the following manner.
A perusal of the intimation issued u/s.143(1) of the Act clearly shows that the CPC has denied the assessee benefit of application for charitable purposes. The assessee is admittedly an educational institution. The assessee has filed his return of income on 14.10.2017 where the due date for filing of the return was 07.11.2017. The assessee has also filed Form 10BB along with the return of income. As the assessee has filed the Form 10BB along with the return of income before due date of filing of return and as the amendment for filing the Form 10B is one month prior to the filing of return was w.e.f. 01.04.2021, we are of the view that the intimation issued