ORDNANCE FACTORIES WOMENS WELFARE ASSOCIATION,KOLKATA vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), INCOME TAX, KOLKATA

The instant appeal is directed at the instance of the assessee against the order of the learned Commissioner of Income Tax, Appeal, Addl/JCIT(A) -10 Mumbai [hereinafter the “ld. CIT(A)”] dt. 18/01/2024, passed u/s 250 of the Income Tax Act, 1961 (“the Act”) for the Assessment Year 2022-23.

The solitary grievance of the assessee is that exemption of Section 11 of the Act was not granted solely on the ground that the assessee failed to furnish audit report in Form No. 10B within prescribed time limit.

At the outset, the ld. Counsel for the assessee stated that admittedly there was a delay in filing of audit report in Form 10B within the prescribed time limit. The assessee moved an application u/s 119(2)(b) of the Act to ld. Commissioner of Income Tax (Exemption) for Assessment Year: 2022-23 Ordnance Factories Womens Welfare Association, Kolkata 2 condonation of delay in filing audit report. Vide order dt. 30/04/2024, the delay of 132 days in filing audit report in Form 10B for Assessment Year 2022-23 has been condoned. Prayer was thus made that since the delay in filing the audit report has been condoned, there being no adverse observation of the lower authorities about the correctness of the claim made u/s 11 of the Act, the assessee be allowed the benefit of exemption u/s 11 of the Act. On the other hand, the ld. D/R failed to controvert the contention of the ld. Counsel for the assessee.

We have heard rival contentions and perused the material placed before us. We observe that the assessee is a registered charitable society in West Bengal, extensively involved in running Kindergarten and Schools across various locations. The assessee has been granted registration u/s 12A of the Act vide Form 10AB dt. 21/07/2023 for the year under appeal. The assessee filed its return of income on 23/11/2022 claiming exemption u/s 11 of the Act for the amount applied for charitable purpose during the year. However, in the return processed u/s 143(1)(a) of the Act, exemption u/s 11 of the Act was denied on the ground that audit report on Form No. 10AB is filed belatedly. Further, ld. Counsel for the assessee challenged the adjustment made by the CPC in its order u/s 143(1)(a) of the Act before the ld. CIT(A) but failed to get relief since the audit report in Form 10B was not e-filed within due date. However, subsequent to the passing of the impugned order on 18/01/2024, assessee’s application for condonation of delay in filing Form 10B for Assessment Year 2022-23, dt. 11/04/2023 (filed prior to the passing of impugned order) has been allowed and vide order dt.