NIKHIL BANGA KALYAN SAMITY,KOLKATA vs. ITO, WARD 1(1), EXEMPT, , KOLKATA

ITA 2807/KOL/2025Status: DisposedITAT Kolkata11 February 2026AY 2021-2022Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the filing of Form 10B is a procedural requirement and not mandatory, especially when the report was available at the time of processing the return. The disallowance made via rectification under Section 154 was considered beyond its scope, as the exemption was initially allowed. The matter was remanded to the AO.

What were the facts?

The assessee filed its return declaring NIL income, which was initially accepted. The Assessing Officer later rectified the intimation under Section 154, disallowing exemption claimed under Section 11 due to a delay in filing Form 10B. This order was upheld by the Ld. Addl/JCIT(A), leading to the present appeal.

What were the issues?

Whether delay in filing Form 10B can be a ground for disallowing exemption under Section 11, and whether such disallowance can be made through rectification proceedings under Section 154.

Which sections of the Income-tax Act were involved?

Section 11,Section 12A,Section 143(1),Section 143(3),Section 154,Section 250,Section 139(1)

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Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH AT KOLKATA

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the Assessee is against the order of the Addl/JCIT(A)- 6, Mumbai [hereinafter referred to as Ld. ‘Addl/JCIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2021-22 dated 10.11.2025. 2. The Assessee is in appeal before the Tribunal raising the following grounds of appeal:

“1. For that on the facts and in the circumstances of the case, the Ld. CIT(A) ought to have considered that the rectification order u/s 154 was passed suo-moto disallowing the exemption claimed u/s 11 by the assessee is erroneous and bad in law.

2.

(a) For that on the facts and in the circumstances

The order continues below.

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