2025 (7) TMI 2018

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.... 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 processing the grounds that the Audit Report in Form 10B was filed belatedly, though with the Return of Income which was filed in prescribed time. 2. The learned CIT(Appeals) and the learned Assessing Officer failed to appreciate that the time limits prescribed for filing the Audit Report is only declaratory and not mandatory. The lower authorit....

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....d 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 ill-founded and unwarranted. 5. 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(1) of the Act. 6. It is submitted that the basic issue leading to denial of exemption under Section 11 of the Act viz. delay in filing the Audit Report in Form 10B, itself is a highly debatable question of law and the same cannot be the ground for adjustment/additions/disallowances under Section 143(1)(a)/143(1) of....

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....a Public Trust Act, 1950. The reason for denying the benefit of exemption under section 11 of the Act is that the assessee has not filed the Form-10B within the due date as specified i.e. one month prior to the date of filing the return of income under section139(1) of the Act. For the AY 2023-24 the due date for filing the return of income under section 139(1) was extended to 30.11.2023 and the claim of the Department is that the assessee should have filed Form-10B on or before 31.10.2023. Since the assessee filed the Form-10B along with the return of income on 30.11.2023 the exemption claimed under section 11 towards application of funds was denied to the assessee. It is a settled legal position that filing of Form-10B is a procedural req....

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..../s 143(1)(a), it is observed the appellant has filed the return of income on 07/11/2022 declaring the income of Rs.2.31,302/- and claimed the exemption u/s 11 of the IT Act. The AO CPC has passed the intimation order on 08/03/2023 after denying the exemption u/s 11 of the IT Act and assessed the income to Rs. 4,29,69,701/- as the appellant failed to file the form 10B one month prior to the filing of return of income. The appellant has filed the form 10B electronically on 07.11.2022 whereas the due date of filing of form 10B was 07.10.2022. For Any charitable organization registered u/s.12A(1)(b) of the IT Act, 1961, it is mandatory to file form 10B one month prior to the date of filing of return as per rule 17B of the IT Rules 1962....

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....of the Act. Such a power u/s. 119(2)(b) is not vested with Ld. CIT(A). Therefore, the Ld. CIT(A) dismiss the appeal filed by the assessee. Now before the Tribunal, the assessee has not produced only details of filing Form 108 electronically with condone delay petition. In absence of the same, We do not find any infirmity in the order passed by the Ld. CIT(A) and therefore we have no hesitation in confirming the order passed by the Ld. CIT(A). 8. For the above reasons, the grounds raised by the assessee are hereby rejected and the additional grounds raised by the assessee is found not relevant to the facts and circumstances of the case, therefore the same is also rejected." As the appellant has already pursued the case befo....

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....vs. CIT(E) (supra) already settle the issue that such a compliance of uploading Form 10B is only a directory than a mandatory provision. 4. Learned DR has drawn strong support from the above extracted lower appellate discussion forming the CPC's "processing" denying sec.11 exemption to the assessee. 5. We find force in assessee's foregoing sole substantive grievance in principle. This is for the precise reason that not only there is no denial from the Revenue side that the due date of filing return had been extended [or the assessee's return itself is not time barred] but also the relevant Form-10B audit report stood uploaded well with the return and indeed during the course of processing itself. We accordingly conclude in....