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Facts
The assessee, a trust, filed its return of income on time for AY 2017-18, but the Audit Report in Form 10B was filed beyond the due date under Section 139(1). Consequently, CPC denied the applicable deduction, which was subsequently confirmed by the CIT(A).
Held
The Tribunal noted that the CIT (Exemptions) had already condoned the delay in filing Form 10B under Section 119(2)(b). Therefore, the Tribunal directed the Ld. AO to re-compute the assessee's income, allowing the deduction after verifying the conditions stipulated in the condonation order.
Key Issues
Whether a deduction applicable to an assessee-trust can be denied solely due to the late filing of Form 10B when the delay has been condoned by the competent authority.
Sections Cited
154, 139(1), 119(2)(b)
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Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM
(िनधा�रण वष� / Assessment Year: 2017-18) Muslim Education Institute Trust ITO (Exemption) बनाम/ Pampore Room No 402, Aaykar Bhawan, Jammu Kashmir 192121 Rail Head Complex Panama Chowk Vs. Jammu and Kashmir-180012. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AADTM-0256-H (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/Appellant by : Sh. G.Q. Wani (CA) –Ld.AR ��थ�कीओरसे/Respondent by : Sh. K. Mehboob Ali Khan (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 06-08-2025 घोषणाकीतारीख /Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 16-07- 2024 in the matter of a rectification intimation issued by CPC u/s 154 on 07-06-2019. It emerges that the assessee filed return of income on 29- 07-2017 which was within time. However, Audit Report in Form 10B was filed on 25-08-2018 which was beyond due date u/s 139(1). Accordingly, CPC denied deduction as applicable to assessee-trust. The action of CPC has been confirmed by Ld. CIT(A) against which the assessee is in further appeal before us.
The Ld. AR stated that the assessee-trust filed condonation petition u/s 119(2)(b) which has been allowed by CIT(Exemptions) vide order dated 13-11-2024 which read as under: - “An application requesting for condonation of delay in filing Form No.10B for the Assessment Year 2017-18 was filed by the applicant.
The matter has been examined. Accordingly, after considering the matter, in exercise of powers vested u/s 119(2)(b) of the Income Tax Act, 1961 and Circular No.02/2020 dated 03.01.2020, the undersigned hereby condones the delay in filing Form No.10B for the A.Y.2017-18 in the case of the above mentioned assessee. However, it shall be open for the AO to verify the trustees or the settler have not benefitted by such failure to file Form 10B directly or indirectly.”
Accordingly, a prayer has been made to allow the impugned deduction to the assessee. 3. It emerges that the whole basis of denial of deduction by CPC no longer survive. Accordingly, we direct Ld. AO to carry out the necessary verification as directed in the above order and re-compute the income of the assessee with a direction to the assessee to show that the aforesaid condition as stated in the order of Ld. CIT(E) has duly been fulfilled by the assessee.
The appeal stands allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.
Sd/- Sd/- (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18-08-2025. आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR
ITAT AMRITSAR