BELARI SRI RAMKRISHNA ASHRAM,HOWRAH V. I.T.O., WARD - 1(2), EXEMPTION, KOLKATA

ITA 1534/KOL/2025

AI Insights

The case involves Belari Sri Ramkrishna Ashram, a registered trust, which appealed against the order of the CIT(A) that upheld the disallowance of exemption under section 11 of the Income Tax Act, 1961. The trust had filed its return declaring 'Nil' income and claimed exemption under section 11, which was disallowed by the CPC due to non-filing of Form No. 10B. The CIT(A) and subsequently the ITAT found that the trust did not comply with the procedural requirements of the Act, specifically the mandatory filing of Form No. 10B, which is essential for claiming exemptions under section 11.

• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2026
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Kolkata
• Assessment Year: 2023-2024
• Appeal Filed On: 16-07-2025
• Other Referred Cases: PCIT-III Bangalore & Anr Vs. M/s Wipro Ltd. (SC), CC Vs. Dilip Kumar & Company
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANAS MONDAL
• Assessee Lawyers: SIDDHARTH AGARWAL
• Keywords: Charitable institution
• Section: 11; 10B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA No. 1534/KOL/2025 Assessment Year : 2023-2024 Belari Sri Ramkrishna Ashram, C/o Subash Agarwal & Associates, Advocates, Siddha Gibson 1, Gibson Lane, Suite 213, 2nd Floor, Kolkata - 700069 [PAN: AAATB5790L] Vs. ACIT (CPC), Bangalore, 10, Middleton Row, Kolkata - 71 APPELLANT RESPONDENT Assessee by : Siddharth Agarwal, Advocate Revenue by : Manas Mondal, Sr. DR Date of hearing : 12.03.2026 Date of Pronouncement : 25.03.2026 O R D E R This is an appeal filed by the assessee against the order passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Ld. Additional/Joint Commissioner of Income Tax (Appeals)-4, Mumbai [hereinafter referred to as “the Ld. CIT(A)] dated 12.06.2025, DIN & order No. ITBA/APL/S/250/2025-26/1076978837(1) on the following grounds of appeal: “1. For that on the facts and in the circumstances of the case, the Ld. CIT(A) erred in law and on facts in upholding the disallowance of exemption under section 1 of the Act. 2. For that on the facts and in the circumstances of the case, the Ld. CIT(A) failed to appreciate that the appellant trust had complied with all the conditions for claiming exemption u/s 11, including timely filing of Form 10BB on 29.10.2023, Printed from counselvise.com 2 ITA No. 1534/KOL/2025 Belari Sri Ramkrishna Ashram and thereafter report in correct Form 10B was filed on 29.03.2024. within the deadline prescribed by the CBDT circular No. 02/2024 dated 05.03.2024. 3. Without prejudice to the above, Ld. CIT(A) ought to have directed the A.Ο. to compute correct income of the assessee by allowing the expenses claimed. 4. The appellant craves leave to add, alter, amend or withdraw any of the above grounds of appeal at or before the time of hearing.” 2. Briefly stated the facts of the case are that the assessee filed return of income on 14.11.2023 declaring total income of Rs. ‘Nil’ claiming exemption u/s 11 of the Act. The assessee is a registered trust, CPC Bangalore processed the return u/s 143(1) of the Act on 02.12.2024 determining total income of Rs. 13,35,520/- disallowing the claim of exemption u/s 11 of the Act. 3. Aggrieved from the above order, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) noted that the assessee did not file Form No. 10B as per the provision of the Act, therefore, the CPC while processing the return u/s 143(1) of the Act correctly disallowed the claim of exemption u/s 11 of the Act, the assessee filed Form No. 10BB on 29.10.2023 as per the amended provision from the AY 2023-24. As per the amended Board Circular No. 173/118/2024-ITA-1, dated 20th October extended date to 10.11.2024, the assessee was replied to file Form No. 10B but file Form No. 10BB on 29.10.2023. The assessee had also not filed Form No. 10B as directed by the CBDT Circular noted above. Hence, the assessee is in default for not filing requisite Form No. 10B as per the Act. Therefore, there is a violation of section 12A(1)(b) of the Act while processing the return CPS has correctly followed the Board Circular and he also considered the arguments of the assessee that filing of Form No. 10B is procedural in nature and he relied on the judgment of the Hon’ble Apex Court in the case of PCIT-III Bangalore & Anr Vs. M/s Wipro Ltd. (SC), dated 11.07.2022 in Civil Appeal No. 1449 of 2022 and he also relied on the judgment of Hon’ble Apex Court in the case of CC Vs. Dilip Kumar & Company reported in 95 taxmann.com 327 since Printed from counselvise.com 3 ITA No. 1534/KOL/2025 Belari Sri Ramkrishna Ashram the assessee did not file Form 10B within the extended period. Therefore, he held that the order passed by the CPC is correct. 4. Aggrieved from the above order, the assessee filed appeal before the ITAT. 5. The Ld. Counsel reiterated the submissions made before the Ld. CIT(A) and submitted that filing of Form 10B is a procedural in nature there is a change for filing of Form No. 10B and 10BB was affected from AY 2023-24. Therefore, there is a mistake in Form No. 10BB instead of Form 10B. The Ld. CIT(A) noted that Form 10BB was filed on 29.10.2023 which is prior to processing the return of income u/s 143(1)(a) of the Act dated 05.12.2024. In support of his argument, he relied on the following judgment: 1. Kinkini Vs. Income Tax Officer, Exemption, Ward-1, Jaipur, ITA No. 1185/JPR/2025, dated 24.12.2025. 2. Sri Paspo Educational and Charitable Trust Vs. CIT (Exemptions)/ ITO, Central Processing Centre, Bengaluru, 2026 (2) TMI 162 (Madras High Court) 3. Sri Ramalingeswawra Swamy Temple Vs. ITO (Exemptions) Ward 1(4), Hyderabad, ITA No. 579/Hyd/2025, dated 25.06.2025 6. On the other hand, the Ld. DR strongly supported the order of Ld. CIT(A) and submitted that the assessee was required to file Form No. 10B as per section 12A(1)(b) of the Act which is a mandatory to claim of exemption u/s 11 of the Act for the assessee who are registered u/s 12A/AA of the Act. However, the assessee till date did not file Form No. 10B . The exemption / deduction provisions should be read strictly in favour of the revenue as held by the judgment in the case of CC Vs. Dilip Kumar & Company noted (supra). Once, the provision is clear from the statute book then it cannot be ignored. Printed from counselvise.com 4 ITA No. 1534/KOL/2025 Belari Sri Ramkrishna Ashram 7. Considering the rival submission and perusing the entire material available on record and the orders of authorities below. As per the amended circular noted (supra) for the AY 2023-24, the assessee was required to file Form 10B instead of Form 10BB which was filed on 29.10.2023. I noted that in this case, Form No. 10B, 10BB was available before processing of return u/s 143(1)(a) of the Act. The case law relied by the Ld. Counsel noted (supra) in those cases the assessee has filed requisite form after the due date and they have been allowed exemption observing that filing Form No. 10BB is procedural in nature, but in the case on hand it is observed that the assessee filed Form No. 10BB on 29.10.2023 whereas it was required to file Form No. 10B which is still not file in this case, therefore, all case law quoted by the Ld. Counsel are not applicable in the present facts of the case since as per section 12A(1)(b), assessee was required to file Form No. 10B, but the assessee till date has not filed Form No. 10B to get exemption as per the amended provision by circular noted (supra), the assessee was required to file Form No. 10B to comply the section 12A(1)(b) of the Act and to get exemption but the assessee did not do so. Therefore, order passed by the Ld. CIT(A) is correct. The case law relied by the ld. CIT(A) supports the case of the revenue and there is no any infirmity in the order of Ld. CIT(A). 8. In the result, appeal of the assessee is dismissed. Order pronounced on 25.03.2026. Sd/- (Laxmi Prasad Sahu) Accountant Member Dated: 25.03.2026 AK, Sr. P.S. Printed from counselvise.com 5 ITA No. 1534/KOL/2025 Belari Sri Ramkrishna Ashram Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "