TaxTMI 
TaxTMI 
2026 (5) TMI 1390
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....Panaji ["Addl/JCIT(A)"], which in turn arose from the intimation issued u/s 143(1) of the Act, for the assessment year 2023-24. 2. In this appeal, the assessee has raised the following grounds: - "1. On the facts and in circumstances of the case and in law the learned Commissioner of Income-tax (Appeals) [CIT(A)] erred in confirming the denial of exemption/deductions under Section 11 of the Act resorted to by the Centralized Processing Centre, Income Tax Department, Bengaluru (herein after referred to as "CPC - ITD") while processing the Return of Income under Section 143(1) of the Act on the grounds that the Audit Report in Form 10BB was filed belatedly, though with the Return of Income which was filed in prescribed time. ....
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....m of Rs. 10,00,000/- being the amount deemed to have been applied as per clause 2 of Explanation to section 11(1) of the Act. 2.3. A sum of Rs. 89,407/- under section 11 read with Section 11(6) of the Act being the amount of capital expenditure incurred to be allowed as application of income. It is submitted that the disallowances referred to above are unjustified and bad in law as the denial of exemption under Section 11 of the Act itself is all-founded and unwarranted. 6. It is submitted that on the facts and in the circumstances of the case and in law, the learned CIT(Appeals) erred in confirming the adjustments resorted to by the learned Assessing Officer while processing the Return of Income under Section 143....
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....d that the provisions of section 12A(i)(b), read with Rule 17B, lay down a mandatory pre-condition for filing Form No.10BB as per the time prescribed. However, the assessee has itself admitted that the Audit Report in Form No.10BB was filed 30 days beyond the extended due date. The Ld. Addl/JCIT(A) further held that it is an Appellate Authority and has no power to condone such delay. Accordingly, the denial of exemption u/s 11 of the Act was upheld. Being aggrieved, the Assessee is in appeal before us. 6. During the hearing, the learned Authorised Representative ("learned AR") submitted that this issue is no longer res integra and the delay in filing Form No.10B/10BB has been condoned by the Hon'ble Jurisdictional High Court in various c....
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.... delay. Even the Hon'ble Gujarat High Court in the case of Sarvodaya Charitable Trust (supra) took the view that in cases like the present one (delay in filing Form No. 10B), the approach of the authorities ought to be equitious, balancing and judicious and availing of exemption should not be denied merely on the bar of limitation. This is more so, when the legislature has conferred wide discretionary powers to condone the delay on the authorities concerned. The relevant portion of this decision reads thus:- "31. Having given our due consideration to all the relevant aspects of the matter, we are of the view that the approach in the cases of the present type should be equitious, balancing and judicious. Technically, strictly an....
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....0.2025, condoned the delay in filing Form No.10B by the assessee and directed the Jurisdictional Assessing Officer to verify the claim of the assessee u/s 11 of the Act, on merits. The relevant findings of the Coordinate Bench, in the aforesaid decision, are reproduced as follows: - "5. We have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. We have also deliberated on laws relied by the Id. AR of the assessee. We find that there is very short dispute in the present appeal. Admittedly, there is delay of 39 days in filing Form 10B. Though, the same was filed along with the return of income. We find that in a series of decision, as relied by Id AR of assessee, vari....