Charitable trust wins partial relief as appeal remanded for fresh adjudication on section 11 exemption denial

ITAT Cochin partly allowed a charitable trust's appeal against CIT(A)'s order upholding CPC's denial of section 11 exemption for AY 2023-24. CPC had denied exemption for non-filing of Part B3 of Schedule BTI and filing Form 10B instead of Form 10BB. ITAT held CIT(A) lacked power to confirm addition for different reasons and failed to consider CBDT's condonation of delay in filing Form 10BB until 31.03.2024 per order dated 7th October 2021. Matter remanded to CIT(A) for fresh adjudication with proper hearing opportunity.

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The Appellate Tribunal (ITAT Cochin) heard an appeal by a charitable trust against the CIT(A)'s order dated 19.02.2025 for AY 2023-24, which upheld the CPC's denial of exemption under section 11 of the Income-tax Act, 1961. The CPC disallowed the exemption because the appellant failed to fill Part B3 of Schedule BTI and filed Form 10B instead of Form 10BB. The CIT(A) confirmed this denial, relying on the incorrect form submission.The Tribunal held that the CIT(A) "is not empowered to confirm the addition for a different reason," noting that the CBDT had condoned the delay in filing Form 10BB up to 31.03.2024 by order dated 7th October 2021. Thus, the CIT(A)'s reasoning was "not valid in law" and failed to consider the CPC's stated reasons adequately. The matter was accordingly restored to the CIT(A) for de novo disposal after affording the appellant an opportunity of being heard.The appeal was "partly allowed" with remand for fresh adjudication.

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