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Facts
Jivan Jyot Trust, a registered charitable trust, filed its ITR for AY 2020-21 along with Form 10B with a minor delay of 10 days due to Covid-19 disruptions. The ITR was processed u/s 143(1), and the AO disallowed expenditures and accumulation totaling Rs. 70,23,545/-, assessing a higher income, solely on the ground of this delay.
Held
The Tribunal noted the minor delay was caused by Covid-19 and, citing Supreme Court and Madhya Pradesh High Court judgments, held that the benefit of extended limitation for filing Form 10 and 10B was available. Consequently, the CIT(A)'s order was set aside, and the matter was remanded to the AO to pass a fresh assessment order by condoning the minor delay.
Key Issues
Whether disallowance of expenditure and accumulation by a charitable trust is justified solely due to a minor delay in filing ITR and Form 10B, considering Covid-19 related extensions in limitation periods.
Sections Cited
12A, 80G(5), 143(1), 250
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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Makarand V. Mahadeokar
Year : 2020-21 Jivan Jyot Trust The ITO बनाम/ 6, Yamuna Park Society Ward-1 v/s. C/o. DR MB Bhagat, Anand – 388 001 Ode Bazar Umreth – 388 220 (Gujarat) "थायी लेखा सं./PAN: AAAAJ 1506 F (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri S.N. Divatia, AR Revenue by : Shri Alpesh Parmar, CIT, DR सुनवाई की तारीख/Date of Hearing : 19/112025 घोषणा की तारीख /Date of Pronouncement: 17/02/2026 आदेश/O R D E R
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), [ADDL/JCIT(A) Mysore, National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 14/02/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2020-21.
The assessee is a public charitable trust and is registered u/s. 12A of the Income Tax Act, 1961 (for short “the Act”) and is also approved u/s.80G (5) of the Act. The assessee filed its return of income (ITR) for AY 2020-21 Jivan Jyot Trust vs. ITO Asst.Year : 2020-21 along with audit report in Form 10B on 25/02/2021 declaring a total income of Rs.3,10,620/-. The extended due date for filing of the ITR along with audit report in Form 10B was 15/02/2021. The ITR was processed u/s.143(1) of the Act on 30/11/2021, wherein, the total income was assessed at Rs.73,34,168/- as against returned income of Rs.3,10,620/-, disallowing the claim of expenditure of Rs.59,23,420/- claimed to have been incurred on charitable activities and further disallowing a sum of Rs.11,00,125/- on account of accumulation, making total disallowance of Rs.70,23,545/- on the ground of delay in filing return of income and audit report in Form 10B.
The Ld.AR has submitted that the minor delay of 10 days in filing the ITR/Form 10B has occurred due to Covid-19 related disruptions. He has further submitted that the return was processed much after the filing of Form 10B and that all the relevant record and details were available to the Assessing Officer (AO)/CPC at the time of processing of the return of income.
We find that the issue is squarely covered by the decision of the Hon’ble Supreme Court in ‘Cognizance for Extension of Limitation, In re [2022] 134 taxmann.com 307/441 ITR (SC)/ suo motu Writ Petition (Civil) No.3/2020’, whereby, the period of limitation expired during the period between 15/03/2020 till 28/02/2022 has been extended for a period of 90 days from 01/03/2022. In identical circumstances, the Hon’ble Madhya Pradesh High Court in the case of St. Thomas Education and Welfare Society Indore vs. Revenue Department [2025] 176 taxmann.com 493 (MP) has held that in view of the decision of the Hon’ble Supreme Court (supra), benefit of limitation for filing for Form 10 & Form 10B will also be available. In view of this, the impugned order of the Ld. CIT(A) is set aside and matter is restored Jivan Jyot Trust vs. ITO Asst.Year : 2020-21 to the file of the AO with a direction to pass a fresh assessment order in accordance with law ignoring the small delay in filing the ITR/Form 10B as the same is ordered to be condoned.
With the above observations, the appeal of the assessee is treated as allowed for statistical purposes.