TaxTMI 
TaxTMI 
2026 (7) TMI 1980
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....ection 143(1) of the Income Tax Act, 1961 [in short, "the Act"] dated 20.03.2014, passed by Central Processing Center, Bengaluru [in short, "the CPC"]. The grounds of appeal raised by the assessee are as under: "1.0 On facts and circumstances of the case and in Law, Ld. CIT(A) erred in confirming the disallowance of exemption claimed u/s. 11(2) of Rs. 72,00,000/-, since the Form 10 had been filed after expiry of the time limit prescribed u/s. 139(1) of the Act; 2.0 The Ld. CIT-(A), before confirming the disallowance of exemption u/s. 11(2) of Rs. 72,00,000/-, erred in not considering the understated vital facts, being :- a) The income had been accumulated and set apart for application of specific purpose forming a....
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....roceedings, the appeal of assessee was dismissed by the Ld. CIT(A) on account of delay in filing of the appeal, which thereafter has been condoned by the Hon'ble ITAT "B" Bench, Mumbai in ITA No. 3271/Mum/2025 vide order dated 29.09.2025 and the matter was restored back to the file of Ld. CIT(A) for decision on merits. 5. The Ld. CIT(A) vide the impugned order dated 28.01.2026 allowed the exemption u/s 11(1) claimed by the assessee however had rejected the claim of exemption u/s 11(2) for Rs. 72,00,000/- stating the reason that Form 10A was not filed before expiry of the time limit u/s 139(1) of the Act, being delayed by 16 months and filed on 29.11.2012. Since, the Ld. CIT(A) had confirmed the disallowance of exemption u/s 11(2) of Rs. ....
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....and the jurisprudence relied upon by the Ld. AR. On the issue in hand, before us, whether the exemption u/s 11(2) is available to the assessee, if the Form 10 has been filed by the assessee beyond the prescribed due date under the Act. We find that, the issue is no more res integra which is decided by the Hon'ble Apex Court and various other Hon'ble Courts in their decisions referred to (supra). The relevant findings emerging inn the aforesaid orders are culled out here under: In the case of CIT vs. Nagpur Hotel Owners Association(supra)- "6. It is abundantly clear from the wordings of sub-section (2) of section 11 that it is mandatory for the person claiming the benefit of section 11 to intimate to the assessing authority the p....
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....n the basis of information supplied subsequent to the completion of assessment would mean that the assessment order will have to be reopened. In our opinion, the Act does not contemplate such reopening of the assessment. In the case at hand it is evident from the records of the case that the respondent did not furnish the required information till after the assessments for the relevant years were completed. In the light of the above, we are of the opinion that the stand of the revenue that the High Court erred in answering the first question in favour of the assessee is correct, and we reverse that finding and answer the said question in the negative and against the assessee. In view of our answer to the first question, we agree with Mr. Ve....
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....warkabai tai Karwa Charitable Trust v. Commissioner of Income-tax(E) (2025) 174 taxmann.com 245 (Bombay) and Kotak Family Foundation v. Commissioner of Income-tax (E) (2025) 176 taxmann.com 56 (Bombay) and condoned the delay. In these cases also, this Court was concerned with condonation of delay in filing of similar forms within the stipulated time while claiming exemption under Section 11 of the IT Act. Therein, reliance was also placed on a judgment of the Gujarat High Court in the case of Sarvodaya Charitable Trust v. ITO (E) (2021) 125 taxmann.com 75 laying down the principle that in cases like the present one, the approach of the authority ought to be equitious, balancing and judicious and availing of exemption should not be denied me....