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Facts
A public trust registered u/s 12AB filed its return claiming Nil income under exemption u/s 11, but its Form 10B (audit report) was filed 39 days late for AY 2024-25. The CPC processed the return disallowing the exemption, which was upheld by the CIT(A) citing that condonation power lies with CBDT.
Held
The Tribunal noted the assessee had a pending condonation application u/s 119(2)(b) with the CIT(E). It set aside the CIT(A)'s order and restored the matter to the Assessing Officer to consider the outcome of the condonation application before deciding the exemption claim under Section 11, granting the assessee an adequate opportunity of hearing.
Key Issues
Whether exemption under Section 11 of the Income Tax Act can be denied solely due to a 39-day delay in filing Form 10B when a condonation application is pending with the CIT(E).
Sections Cited
Section 143(1), Section 250, Section 11, Section 11(2), Section 12AB, Section 119(2)(b), Section 12A(1)(b)
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Income Tax Appellate Tribunal, PANAJI BENCH
IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos.152/PAN/2025 (A.Y.2024-25 ) Centre for incubation and Vs. I T O- Exemption, business acceleration, Ward-1, Angel Charities, Pundalik Niwas, Angel Ashram, Panaji-403001, Verna, Salcete, Goa. Goa-403722. PAN/GIR No. AAFCC5621B (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Appellant by Shri.Mahendra Gohel.AR Revenue by Smt. Rijula Uniyal. Sr.DR सुनवाई की तारीख/Date of Hearing 18.11.2025 घोषणा की तारीख/Date of Pronouncement 26.11.2025 ORDER PER PAVAN KUMAR GADALE, JM:
The appeal is filed by the assesse against the order of the ADDL/JCIT(A)-1Gurugram passed u/sec143(1) and u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) sustaining the denial of claim of exemption u/sec11 of the Act.
2. The Brief facts of the case are that, the assesse is a Public trust registered under the companies Act2013 and is also registered u/sec 12AB of the Income Tax Act and Centre for incubation and business acceleration. the Trust was established for the charitable purpose. The assessee has filed the return of income for the A.Y 2024-25 on 15.11.2024 disclosing a total income of Rs.Nil after claiming exemption u/sec 11 of the Act and the return of income was processed u/sec 143(1) of the Act on 28.01.2025 determining the total income of Rs.29,62,131/- by disallowing the claim of exemption u/sec 11 & u/sec11(2) of the Act.
Aggrieved by the order, the assessee has filed an appeal with the CIT(A), whereas the CIT(A) has considered the grounds of appeal, submissions of the assessee and findings of the AO and observed that the assessee has filed the return of income claiming exemption u/s 11 of the Act, whereas the Form 10B was filed on 15.11.2024 beyond the extended due date of 7.10.2024 for A.Y. 2024-25 as per CBDT circular no.10/2024 dated 29-09-2024 and there is a delay of 39 days in filing the audit report in Form. No.10B by the assessee. Whereas the CIT(A) considering the facts and submissions observed that as per Circular.No03/2020 dated 03.01.2020 and Circular No.16/2022 dated 19.07.2022 the power for condoning the delay lies with the CBDT and therefore the assessee is not eligible for exemption u/sec11 of the Act and confirmed the action of the Assessing Officer CPC and has dismissed the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon’ble Tribunal.
Centre for incubation and business acceleration.
At the time hearing, the Ld.AR submitted that the CIT(A) has erred in not considering the facts on merits and submissions on the delay. Whereas the assessee has applied for condonation of delay in filing the Form.No 10B under section 119(2)(b) of the Act with the CIT(E) and the delay of 39 days in filling the Form.NO.10B is not a wanton Act and prayed for allowing the assessee appeal. The Ld.AR substantiated the submissions with the factual paper book and judicial decisions. Per Contra, the Ld. DR supported the order of the CIT(A).
We heard the rival submissions and perused the material on record. The grievance of the assesse that the CIT(A) has erred in not considering the facts on the delay in filling the Audit report in Form,No,10B and confirming the action of the A.O.CPC. The Ld.AR submitted that the assessee has applied for condonation of delay in filing the Form. No 10B under section 119(2)(b) of the Act with the office of CIT(Exemptions)in August 2025 and the application is pending for disposal. Whereas the assesse has filed Form. No.10B being Audit report u/sec 12A(1)(b) of the Act on 15.11.2024 beyond the extended due date of 7.10.2024 for A.Y. 2024-25 as per CBDT circular no.10/2024 dated 29-09-2024 and there was a delay of 39 days in filling the Form.No.10B. Accordingly, We considered the facts, circumstances and the principles of natural justice and set aside the order of the CIT(A) and restore the entire disputed issues to the file of the Centre for incubation and business acceleration. Assessing Officer to consider the outcome of condonation of delay application filed by the assesse with the CIT(E) and consider the claim of exemption u/sec11 of the Act. Further the assessee should be provided adequate opportunity of hearing and the assessee shall cooperate in submitting the information. And we allow the grounds of appeal
of the assessee for statistical purposes.
6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 26.11.2025.