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Income Tax Appellate Tribunal, PUNE “SMC” BENCH : PUNE
Before: SHRI SATBEER SINGH GODARA
Date of Hearing : 22.03.2024 Date of Pronouncement : 16.05.2024 ORDER
This assessee’s appeal for assessment year 2017-18, arises against the Addl./JCIT(A)-4, Delhi, Delhi’s Din and Order No.ITBA/APL/S/250/2023-24/1058853900(1), dated 18.12.2023, in proceedings u/s.143(1) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties. Case file perused.
The assessee pleads the following substantive grounds in the instant appeal :
1) “The learned CIT(A) erred in confirming the addition of Rs.10,39,011/- disallowing the entire amount of expenses
2 ITA.No.295/PUN./2024 incurred for the purpose of the activities to be carried out
2) The learned CIT(A) erred has confirmed the addition on the basis that, Form 10B of the Trust for the year under consideration was not filled within time as laid down in the Act.
3) The learned CIT(A) has completely ignored several case laws where in multiple High Courts have allowed Form
10B to be filed up to the completion of the assessment or during any proceedings.
4) The appellant request your honour to kindly delete the addition made by the learned CIT(A) on account of non- filling of audit report in form 10B and allow the benefit of deduction u/s 11 of the Act and oblige.
5) The appellant craves leave to add, alter, amend, or delete any of the above grounds of appeal.”
Both the learned representatives next invited my attention to the impugned lower appellate discussion declining the assessee’s appeal reads as under :
3 ITA.No.295/PUN./2024
Learned counsel vehemently argued during the course of hearing that the lower appellate authority herein has erred in law and on facts not only in refusing to condone delay in submission of form 10B/audit report and also, it’s entire receipts have been added without giving credit of the corresponding expenditure incurred therein.
The Revenue on the other hand vehemently submitted that this is an instance of sec.143(1)intimation
4 ITA.No.295/PUN./2024 wherein the learned lower appellate authority has even questioned the corresponding lower appellate order dated 09th March, 2019 vis-à-vis the one dated 23.11.2021 (supra).
I have given my thoughtful consideration to the foregoing vehement rival submissions and find no reason to accept either parties stand in entirety at this stage. This is for the precise reason that the learned lower authorities have not given due consideration to the relevant mitigating circumstances resulting in delay in submission of form 10B and they have also assessed it’s entire receipts without computing the income, without prejudice to the foregoing first issue, on netting basis. Case law M/s. Social Security Scheme of GICEA vs. CIT(E) [2023] 147 taxmann.com 283 (Guj.) has already held the above form 10B conditions as not mandatory in nature for the purpose of claiming sec.11 exemption. Faced with this situation, I hereby restore the assessee’s instant appeal back to learned Assessing Officer for his afresh appropriate adjudication within three effective opportunities of hearing in consequential proceedings at assessee’s risk and responsibility. Ordered accordingly.
This assessee’s appeal is allowed for statistical purposes in above terms.
5 ITA.No.295/PUN./2024 Order pronounced in the open Court on 16.05.2024.