Tribunal Grants Tax Exemption to Assessee, Overturns Earlier Decision, Condoning Delay in Filing Form 10B for AY 2014-15.

The Tribunal allowed the appeal of the assessee, overturning the decision of the Ld. First Appellate Authority, and granted the exemption u/s 11 of the Income Tax Act for A.Y. 2014-15. It held that the delay in filing Form 10B was condoned and section 12A(1)(ba) was not applicable, thus entitling the assessee to the exemption.

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Issues:
1. Denial of exemption u/s 11 of the Income Tax Act, 1961 due to delay in filing ROI and Form 10B.

Analysis:
The appeal was filed by the assessee against the order passed by the Learned ADDL/JCIT (A)-2, Mumbai, denying exemption u/s 11 of the Act for A.Y. 2014-15. The assessee, engaged in running an orphanage school, filed its ROI and Form 10B after the due date specified under the Act. The Central Processing Centre determined the total income at Rs. 82,83,576/- by disallowing the exemption claimed u/s 11 of the Act.

The Ld. First Appellate Authority dismissed the claim of the assessee, citing the late filing of ROI and Form 10B as a violation of the Income Tax Rules. The Authority held that the Assessing Officer rightly disallowed the exemption claimed. The assessee then appealed, arguing that the delay in filing Form 10B was condoned by the Ld. CIT(E), and section 12A(1)(ba) was not applicable for the year under consideration.

The Tribunal considered the submissions and held that since the delay for filing Form 10B was condoned, there should be no denial of exemption u/s 11 of the Act on that ground. Regarding the delay in filing ROI, the Tribunal noted that section 12A(1)(ba) was not applicable for the relevant year. Consequently, the Tribunal concluded that the assessee was eligible for exemption u/s 11 of the Act for the year under consideration and directed the revenue authorities to allow the exemption.

In conclusion, the Tribunal allowed the appeal of the assessee, overturning the decision of the Ld. First Appellate Authority and granting the assessee the exemption u/s 11 of the Act for A.Y. 2014-15.

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