2026 (1) TMI 359

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....aluru (hereinafter referred to as 'the ld. AO') u/s 143(1) of the Act for Assessment Year 2021-22. 2. The brief facts of the case are that the assessee filed return of income on 29.04.2024 declaring the total income at Rs. 39,450/-. The return of income was processed u/s 143(1) of the Act on 20.06.2024 wherein the CPC disallowed exemption claimed u/s 11(1) of the Act of Rs. 72,33,450/-. 3. Against the order dated 20.06.2024 of the ld. AO, the appellant-assessee preferred appeal before the ld.CIT(A) which was dismissed, vide order dated 25.11.2024. 4. Being aggrieved, the appellant-assessee preferred the present appeal with the following grounds of appeal:- "1. That the order dated 25.11.2024 passed u/s 250 of the Income ta....

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....Appellant an opportunity of being heard. 5. That the Appellant craves to add, amend, alter, modify or delete any or all of the grounds of appeal before or at the time of hearing." 5. The ld. AR for the assessee submitted that the ld.CIT(A) while passing the ex parte order failed to appreciate that due date for submitting Form 10B was 15th February, 2022. The Form 10B was filed on 19.02.2022, so, there was delay of four days in filing the Form 10B. The competent authority had power to condone the delay in filing the form. Reliance was placed on the following decisions:- (i) Sampoorna Seva Charitable Trust vs. ITO (Exemption) (2025) 172 taxmann.com 161 (Delhi-Trib.); (ii) Sampoorna Seva Charitable Trust vs. ITO (....

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....enied with the reason that it has filed Form 10B after filing the return of income. 8. We have gone through the decisions relied upon by the assessee. In this regard, we observed that the ITAT, Delhi, on the same facts, in the case of ACIT vs. Green Dot Health Foods Pvt. Ltd. in ITA No.8414/Del/ 2019 dated 06.02.2023 decided the issue in favour of the assessee relying on the decision of Hon'ble Delhi High Court in the case of CIT vs. Contimeters Electrical (P) Ltd. (2009) 178 taxman 422 (Delhi). We also find that in the case of Green Dot Health Foods Pvt. Ltd. (supra), the coordinate Bench has considered the exact similar case and allowed the claim by observing as under :- "7. We have heard the rival submissions and peruse....

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....thus the ground of Revenue is dismissed." We find that as per the above findings, coordinate Bench has allowed the claim of the assessee for the reason that the assessee has filed Form 10CCB before completion of the 143(1) proceedings. 9. The facts in the present case are exactly similar and the filing of Form 10B is directory to facilitate the assessment and not mandatory. The assessee is running charitable trust and carried on charitable activities over the years, mere non-filing of Form 10B which is directory in nature cannot be the reason to deny the benefit extended by the statute, therefore, we are inclined to allow the claim of the assessee by relying on the findings of coordinate Bench of the Tribunal in the case o....