2024 (3) TMI 206 - AT - Income Tax

Trust's Appeal Wins: Tribunal Grants Tax Exemption u/s 11 After Timely Filing Verification for AY 2018-19.

Shreya Cancer Foundation Versus Income Tax Officer Ward-1 (1) Visakhapatnam

Shreya Cancer Foundation Versus Income Tax Officer Ward-1 (1) Visakhapatnam - TMI Issues:The appeal against the order of Commissioner of Income Tax (Appeals) [CIT(A)] regarding the denial of exemption claimed by the assessee u/s 11 of the Income Tax Act, 1961 for the Assessment Year 2018-19.Summary:The assessee, a registered Trust u/s 12A of the Act, filed a return of income for A.Y. 2018-19 claiming exemption u/s 11 of the Act. The return was processed u/s 143(1) resulting in a tax demand, which the CIT(A) upheld due to a delay in filing Form 10B. The assessee appealed to the Tribunal, arguing timely filing of Form 10B. The Tribunal found that Form 10B was indeed filed within the prescribed time limit of 31.07.2018. As the revenue authorities had erroneously denied the exemption, the Tribunal set aside their orders and directed the AO to allow the exemption claimed by the assessee u/s 11 of the Act after verification. The appeal of the assessee was allowed, and the order was pronounced on 29th February 2024.Key Points:1. The assessee, a registered Trust u/s 12A, filed a return of income for A.Y. 2018-19 claiming exemption u/s 11.2. The CIT(A) upheld a tax demand due to a delay in filing Form 10B, leading to the appeal before the Tribunal.3. The Tribunal found that Form 10B was filed within the prescribed time limit of 31.07.2018.4. The revenue authorities had erroneously denied the exemption claimed by the assessee u/s 11 of the Act.5. The Tribunal directed the AO to allow the exemption claimed by the assessee after verification, setting aside the orders of the revenue authorities.6. The appeal of the assessee was allowed, and the order was pronounced on 29th February 2024.