SIR CHHOTU RAM EDUCATIONAL TRUST,KANJHAWALA vs. ITO EXEMPTION, ROHTAK

PER MAHAVIR SINGH, VP:

This appeal by the assessee is arising out of order of Learned
Commissioner of Income Tax (Exemption), Chandigarh [“Ld. CIT(E)”, for short], not condoning the delay u/s 119(2)(b) of the Income Tax
Act, 1961 (hereinafter referred to as ‘the Act’) in filing Form No. 10B of the Act for A.Y. 2020-21 vide his order dated 27/05/2025. 2. At the outset, Ld. CIT DR pointed out that this appeal is not maintainable as the order has been passed by Ld. CIT(E),
Chandigarh, u/s 119(2)(b) of the Act. He stated that as per provisions of section 253 of the Act where appeal to the Appellate Tribunal lies from which order is described. Ld. CIT DR drew our attention to the provisions of Section 253 of the Act and stated that the provision of Section 253(1) of the Act nowhere narrated that the appeal against the order passed u/s 119(2)(b) of the Act can be challenged before the Tribunal.
3. When the aforesaid facts were confronted to Ld. Counsel for the assessee, he narrated the fact that the assessee is an Educational
Trust runs a polytechnic college in Village Kanjhawla Delhi. The assessee trust filed its return of income in ITR Form no. 7 on 15.02.2021 along with Audit Report in Form 10B. The Ld. Counsel for the assessee admitted that the Audit Report in Form 10B was filed late by one month as the same should be filed by 15.01.2021 which is delayed by one month. In the meantime, the return was processed u/s 143(1) of the Act and intimation was received by the assessee through ACIT(Exemption), Chandigarh on 15.05.2025. But he stated that even the Income Tax Portal still showing Income Tax Return under process and pending as the demand was created when return was processed for the reason that the Audit Report in Form 10B was not filed in time, as a result thereof the deduction was disallowed.
The assessee filed application u/s 119(2)(b) of the Act before the Ld.
CIT(E), Chandigarh on 20.05.2025 for condonation of delay in filing of Audit Report in Form No. 10B which was delayed by one month.
The assessee explained the delay that due to spread of COVID-19 and in terms of the decision of Hon’ble Supreme Court i.e. suo moto decision passed by Supreme Court in March, 2020 condoning the delay up to 28th February, 2022, there is no delay but still there is a delay because the application for condonation was filed on 20.05.2025. The Ld. CIT(E) rejected the said application vide his order dated 27.05.2025 by observing as under:

“3. The application filed by the assessee on 20.05.2025 pertains to AY-2020-21, which is beyond three years from the end of assessment year for which such application is made and the application has been filed by the assessee after the issuance of above mentioned circular i.e.
after 18.11.2024. Hence, in view of the aforesaid circular, the application filed by the assessee for condonation of delay in filing form 10B cannot be entertained. Accordingly, the application received on 20.05.2025 filed for condonation of delay u/s 119(2)(b) of the Act, in filing of Form 10B for AY 2020-21 is rejected.

Dated:20/02/2026
Binita, Sr.PS