AI Insights
The case involves Caregiver Saathi Foundation, a charitable trust, appealing against the order of the Commissioner of Income-tax (Appeals) which confirmed the disallowance of exemption under section 11 of the Income-tax Act, 1961. The exemption was initially disallowed by the Central Processing Centre due to the late filing of Form No. 10B, which is required for the accumulation of funds not utilized for charitable purposes within the financial year. The Tribunal noted that the delay was due to technical glitches on the Income-tax portal and was within the permissible period of 365 days for condonation of delay as per CBDT circulars. The Tribunal's decision emphasized the need for a fair assessment of the circumstances surrounding the delay in filing the necessary forms.
Appeal Details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 471350 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
CRN Number
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
21-01-2025
Appeal Filed By
Assessee
Order Result
Partly Allowed
Bench Allotted
H
Assessment Year
2022-2023
Judgement Text
"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H (SMC)” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAHUL CHAUDHARY (JUDICIAL MEMBER) ITA No. 4002/MUM/2024 Assessment Year: 2022-23 Caregiver Saathi Foundation, 1703, Sienna Tower Wing-B, Lodha Florenza, Western Express Highway N Ext, to Hub Mall, Goregaon, Mumbai-400063. Vs. Dy. CIT, CPC Bengluru-560100. PAN NO. AAICC 5644 B Appellant Respondent Assessee by : None Revenue by : Shri Pravin Salukhe. Sr. DR Date of Hearing : 14/01/2025 Date of pronouncement : 21/01/2025 ORDER PER OM PRAKASH KANT, AM This appeal has been preferred by the assessee against order dated 12.06.2024 passed by the Ld. Commissioner of Income-tax (Appeals) – Coimbatore [in short ‘the Ld. CIT(A)’] confirming the disallowance of exemption u/s 11 of the Income-tax Act, 1961 (in short ‘the Act’) amounting to Rs.12,94,304/-. 2. We have heard rival submissions of the parties an the relevant material seeking exemption u/s 11 of the Income Act). The assessee was required to file form No. 10B prescribed under the Income-tax Rules, 1962 for accumulation of the funds which were not utilised for the charitab consideration. But the prescribed form No. 10B was not filed on due date and therefore, the central Processing centre disallowed the claim of exemption u/s 11 of the Act to that extent. On further appeal, the ld CIT(A) allowed but upheld the disallowance in principle. The relevant finding of the ld CIT(A) is reproduced as under: “7.1 The appellant claimed Accumulation within the time of income of the previous year applied to charitable or religious purposes in India during that year amounting to Rs.12,94,204/ 8. The appellant had e acknowledgement number 997 form 10B was e Auditor on 28/03/2023 which was not one month prior the due date of filing of Income Tax Return under section 139(1). Due date for filing return of income for the year under considera extended due date of furnishing was 07.11.2022. 9.1. The return of income has been filed u/s.139(8A) after the due date but the appellant has to file audit report one month before the due date of furnishing return of income as per the time limit as per sec 139(1).The appellant has failed to fulfill the conditions for allowing accumulation of income under section 11(1) of the IT Act. The appellant ITA No. 4002/MUM/2024 Caregiver Saathi Foundation We have heard rival submissions of the parties an the relevant material on record. The assessee is charitable trust seeking exemption u/s 11 of the Income-Tax Act. 1961( in short the Act). The assessee was required to file form No. 10B prescribed tax Rules, 1962 for accumulation of the funds which were not utilised for the charitable purpose in the year under consideration. But the prescribed form No. 10B was not filed on due date and therefore, the central Processing centre disallowed the claim of exemption u/s 11 of the Act to that extent. On further appeal, the ld CIT(A) allowed partial relief of quantum of exemption but upheld the disallowance in principle. The relevant finding of the ld CIT(A) is reproduced as under: “7.1 The appellant claimed Accumulation within the time of income of the previous year applied to charitable or religious purposes in India during that year amounting to Rs.12,94,204/-. 8. The appellant had e-filed Form-10B vide acknowledgement number 997168520280323 and the form 10B was e-filed, furnished and verified by the Auditor on 28/03/2023 which was not one month prior the due date of filing of Income Tax Return under section 139(1). Due date for filing return of income for the year under consideration was 31/10/2022.The extended due date of furnishing was 07.11.2022. 9.1. The return of income has been filed u/s.139(8A) after the due date but the appellant has to file audit report one month before the due date of furnishing return of income as per 12A(1)(b) of the I.T.Act which is the time limit as per sec 139(1).The appellant has failed to fulfill the conditions for allowing accumulation of income under section 11(1) of the IT Act. The appellant ITA No. 4002/MUM/2024 2 Caregiver Saathi Foundation We have heard rival submissions of the parties and perused e is charitable trust Tax Act. 1961( in short the Act). The assessee was required to file form No. 10B prescribed tax Rules, 1962 for accumulation of the funds le purpose in the year under consideration. But the prescribed form No. 10B was not filed on due date and therefore, the central Processing centre disallowed the claim of exemption u/s 11 of the Act to that extent. On further partial relief of quantum of exemption but upheld the disallowance in principle. The relevant finding of the “7.1 The appellant claimed Accumulation within the time of income of the previous year applied to charitable or religious purposes in India during that year 10B vide 168520280323 and the filed, furnished and verified by the Auditor on 28/03/2023 which was not one month prior the due date of filing of Income Tax Return under section 139(1). Due date for filing return of income for tion was 31/10/2022.The extended due date of furnishing was 07.11.2022. 9.1. The return of income has been filed u/s.139(8A) after the due date but the appellant has to file audit report one month before the due date of furnishing 12A(1)(b) of the I.T.Act which is the time limit as per sec 139(1).The appellant has failed to fulfill the conditions for allowing accumulation of income under section 11(1) of the IT Act. The appellant filed return of income along with audit report in for 10B on same day i.e.28/03/2023. 9.2. It is noticed form the adjustment notice sent that the communication that the exemption claimed in respect of the accumulated amount Rs.19,19,371/ not allowed on account of late filing of Form 10B but the Form 10B reflect the amount of income of the previous year applied to charitable or religious purposes in India during that year amounting to Rs.12,94,204/ of the above the disallowance made by the CPC for the amount Rs.19,19,371 is restricted Rs.12,94, the excess amount of Rs.6,25,167/ 2.1 However, we find that the Tribunal in the case of Foundation in ITA No. 2714/Mum/2024 for assessment year 2021-22 has held that the Central Board of Direct Taxes had authorized the respective Commissioner of Income the delay in filing the Form No. 10B. The relevant finding of the Tribunal (supra) is reproduced as under: “4.4 However, we noticed that the CBDT issued 3 circulars No. 15, 16 & No. 17 on 19th July 2 authorized the Commissioners of Income applications for condonation of delay in filing Form 9A, Form 10, Form No. 10B & 10BB for AY 2018 subsequent Assessment Years, where there is the delay of up to 365 days and reasonable cause for delay. The relevant circular in relation to form No. 10 is reproduced as under: F.No.197/89/2022 Central Board ITA No. 4002/MUM/2024 Caregiver Saathi Foundation filed return of income along with audit report in for 10B on same day i.e.28/03/2023. 9.2. It is noticed form the adjustment notice sent that the communication that the exemption claimed in respect of the accumulated amount Rs.19,19,371/ not allowed on account of late filing of Form 10B but the B reflect the amount of income of the previous year applied to charitable or religious purposes in India during that year amounting to Rs.12,94,204/-. In view of the above the disallowance made by the CPC for the amount Rs.19,19,371 is restricted Rs.12,94,204/ the excess amount of Rs.6,25,167/- is hereby deleted.” However, we find that the Tribunal in the case of Foundation in ITA No. 2714/Mum/2024 for assessment year has held that the Central Board of Direct Taxes had zed the respective Commissioner of Income- the delay in filing the Form No. 10B. The relevant finding of the Tribunal (supra) is reproduced as under: “4.4 However, we noticed that the CBDT issued 3 circulars No. 15, 16 & No. 17 on 19th July 2020, whereby it authorized the Commissioners of Income-tax to admit applications for condonation of delay in filing Form 9A, Form 10, Form No. 10B & 10BB for AY 2018-19 or for any subsequent Assessment Years, where there is the delay of up to 365 days and decide on merits after considering reasonable cause for delay. The relevant circular in relation to form No. 10 is reproduced as under: Circular No. 17/2022 F.No.197/89/2022-IT A-I Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes ITA No. 4002/MUM/2024 3 Caregiver Saathi Foundation filed return of income along with audit report in form 9.2. It is noticed form the adjustment notice sent that the communication that the exemption claimed in respect of the accumulated amount Rs.19,19,371/- is not allowed on account of late filing of Form 10B but the B reflect the amount of income of the previous year applied to charitable or religious purposes in India . In view of the above the disallowance made by the CPC for the 204/- and is hereby deleted.” However, we find that the Tribunal in the case of Shri Pushkar Foundation in ITA No. 2714/Mum/2024 for assessment year has held that the Central Board of Direct Taxes had -tax to condone the delay in filing the Form No. 10B. The relevant finding of the “4.4 However, we noticed that the CBDT issued 3 circulars 020, whereby it tax to admit applications for condonation of delay in filing Form 9A, Form 19 or for any subsequent Assessment Years, where there is the delay of decide on merits after considering reasonable cause for delay. The relevant circular in relation Circular No. 17/2022 Sub: Condonation of delay under Section 119(2)(b) of the Income- Form No. 10 for Assessment Year 2018 subsequent years In exercise of the powers conferre the Income-tax Act, 1961 (hereinafter referred to as 'Act') , the Central Board of Direct Taxes (CBDT) by Circular No . 3/ 2020 [F.No .1 97 / 55 / 20 18 authorized the Commissioners of Income applications of condonation of delay in filing Form No. 9A and Form No. 10 for A Y 2018 Assessment Years where there is delay of up to 365 days and decide on merits. 2. Further to the powers delegated to Commissioners of Income-tax as discussed above, the CBDT hereby directs that where there is delay of beyond 365 days upto three years in filing Form No. 9A and Form No. 10 for Assessment Year 20 18-19 or for any subsequent Assessment Years, the Pro Chief Commissioners of Income Commissioners of Income applications of condonation of delay under section 119(2) of the Act and decide on merits. 3. The Pr. Chief Commissioner 1 Chief Commissioner of Income-tax, as the case may be, while enterta applications for condona ti on of delay in filing form No. 9A and Form No. 10 , shall satisfy themselves that the app licant was prevented by reasonable cause from filing such Form within the stipulated time. In respect of Form No. 10 , the Pr. Chief Commissioner 1 Chief Commissioner of Income case may be, shall also satisfy themselves that the amount accumulated or set apart has been invested or deposited in anyone or more of the forms or modes specified in sub section (5) of section 4. Further, the Pr. Chief Commissioner I Chief Commissioner of Income-tax, as the case may be, shall preferably dispose ITA No. 4002/MUM/2024 Caregiver Saathi Foundation New Delhi the 17th July, 2022 Sub: Condonation of delay under Section 119(2)(b) of -tax Act, 1961 in filing of Form No. 9A and Form No. 10 for Assessment Year 2018- subsequent years- Reg. In exercise of the powers conferred under section 11 9(2) of tax Act, 1961 (hereinafter referred to as 'Act') , the Central Board of Direct Taxes (CBDT) by Circular No . 3/ 2020 [F.No .1 97 / 55 / 20 18-ITA-I] dated 03.01.2020 authorized the Commissioners of Income-tax to admit applications of condonation of delay in filing Form No. 9A and Form No. 10 for A Y 2018- 19 or for any subsequent Assessment Years where there is delay of up to 365 days and decide on merits. 2. Further to the powers delegated to Commissioners of x as discussed above, the CBDT hereby directs that where there is delay of beyond 365 days upto three years in filing Form No. 9A and Form No. 10 for Assessment 19 or for any subsequent Assessment Years, the Pro Chief Commissioners of Income-tax Commissioners of Income-tax are authorized to admit such applications of condonation of delay under section 119(2) of the Act and decide on merits. 3. The Pr. Chief Commissioner 1 Chief Commissioner of tax, as the case may be, while enterta applications for condona ti on of delay in filing form No. 9A and Form No. 10 , shall satisfy themselves that the app licant was prevented by reasonable cause from filing such Form within the stipulated time. In respect of Form No. 10 , Chief Commissioner 1 Chief Commissioner of Income- case may be, shall also satisfy themselves that the amount accumulated or set apart has been invested or deposited in anyone or more of the forms or modes specified in sub section (5) of section 11 of the Act. 4. Further, the Pr. Chief Commissioner I Chief Commissioner tax, as the case may be, shall preferably dispose ITA No. 4002/MUM/2024 4 Caregiver Saathi Foundation New Delhi the 17th July, 2022 Sub: Condonation of delay under Section 119(2)(b) of tax Act, 1961 in filing of Form No. 9A and 19 and d under section 11 9(2) of tax Act, 1961 (hereinafter referred to as 'Act') , the Central Board of Direct Taxes (CBDT) by Circular No . 3/ I] dated 03.01.2020 tax to admit applications of condonation of delay in filing Form No. 9A 19 or for any subsequent Assessment Years where there is delay of up to 365 days 2. Further to the powers delegated to Commissioners of x as discussed above, the CBDT hereby directs that where there is delay of beyond 365 days upto three years in filing Form No. 9A and Form No. 10 for Assessment 19 or for any subsequent Assessment Years, the 1 Chief tax are authorized to admit such applications of condonation of delay under section 119(2) of 3. The Pr. Chief Commissioner 1 Chief Commissioner of tax, as the case may be, while entertaining such applications for condona ti on of delay in filing form No. 9A and Form No. 10 , shall satisfy themselves that the app licant was prevented by reasonable cause from filing such Form within the stipulated time. In respect of Form No. 10 , -tax, as the case may be, shall also satisfy themselves that the amount accumulated or set apart has been invested or deposited in anyone or more of the forms or modes specified in sub- 4. Further, the Pr. Chief Commissioner I Chief Commissioner tax, as the case may be, shall preferably dispose the application within three months of receipt of the application. 4.6 In the instant case before us, the assessee has f copy of the grievance petition, which was filed on Income Portal on 21.03.2022 where he has submitted that assessee could not file the form due to technical glitches on the portal of the Income within the period of 365 days and the assessee was prevented by sufficient and reasonable cause in filing the Form No. 10 . Thus, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Assessing Officer with the direction to concerned commissioner of Income condonation for delay in filing Form No. 10. After condonation of delay in filing for No. 10 by the CIT (exemption), the AO shall decide the claim of exemption u/s 11(2) of the Act in accordance with law. The grounds No. 1 to 2.2 of the appeal are accordingly allowed for statistical purposes. The remaining grounds are rendered academic only since, we have already restored the issue back to the file of the Assessing Of 2.1 In the instant case, there is no deliberate delay on the part of the assessee and there is no malafide and hence, the delay in filing the said form is deserved to be of the justice, we set aside the order of dispute and restore the matter back to the file of the Assessing Officer with the direction to the assessee for applying to the concerned Commissioner of condonation of delay in filing Form No Assessing Officer shall decide the claim of the exemption u/s 11 in accordance with law. The grounds of appeal of the assessee are accordingly allowed for statistical purposes. ITA No. 4002/MUM/2024 Caregiver Saathi Foundation the application within three months of receipt of the In the instant case before us, the assessee has f copy of the grievance petition, which was filed on Income Portal on 21.03.2022 where he has submitted that assessee could not file the form due to technical glitches on the portal of the Income-tax Department. Thus it is evident that delay is thin the period of 365 days and the assessee was prevented by sufficient and reasonable cause in filing the Form No. 10 . Thus, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Assessing Officer with the direction to the assessee for applying to the concerned commissioner of Income-tax (Exemption) and seek condonation for delay in filing Form No. 10. After condonation of delay in filing for No. 10 by the CIT (exemption), the AO shall decide the claim of exemption u/s 1(2) of the Act in accordance with law. The grounds No. 1 to 2.2 of the appeal are accordingly allowed for statistical purposes. The remaining grounds are rendered academic only since, we have already restored the issue back to the file of the Assessing Officer. In the instant case, there is no deliberate delay on the part of the assessee and there is no malafide and hence, the delay in filing deserved to be condoned. Therefore, in the interest of the justice, we set aside the order of the Ld. CIT(A) on the issue in dispute and restore the matter back to the file of the Assessing Officer with the direction to the assessee for applying to the concerned Commissioner of Income-tax (Exemption condonation of delay in filing Form No. 10B. Assessing Officer shall decide the claim of the exemption u/s 11 in accordance with law. The grounds of appeal of the assessee are accordingly allowed for statistical purposes. ITA No. 4002/MUM/2024 5 Caregiver Saathi Foundation the application within three months of receipt of the In the instant case before us, the assessee has filed a copy of the grievance petition, which was filed on Income-tax Portal on 21.03.2022 where he has submitted that assessee could not file the form due to technical glitches on the portal tax Department. Thus it is evident that delay is thin the period of 365 days and the assessee was prevented by sufficient and reasonable cause in filing the Form No. 10 . Thus, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Assessing the assessee for applying to the tax (Exemption) and seek condonation for delay in filing Form No. 10. After condonation of delay in filing for No. 10 by the CIT (exemption), the AO shall decide the claim of exemption u/s 1(2) of the Act in accordance with law. The grounds No. 1 to 2.2 of the appeal are accordingly allowed for statistical purposes. The remaining grounds are rendered academic only since, we have already restored the issue back to the In the instant case, there is no deliberate delay on the part of the assessee and there is no malafide and hence, the delay in filing condoned. Therefore, in the interest the Ld. CIT(A) on the issue in dispute and restore the matter back to the file of the Assessing Officer with the direction to the assessee for applying to the Exemption) and seek . 10B. Thereafter, the Assessing Officer shall decide the claim of the exemption u/s 11 in accordance with law. The grounds of appeal of the assessee are 3. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on Sd/- (RAHUL CHAUDHARY JUDICIAL MEMBER Mumbai; Dated: 21/01/2025 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// ITA No. 4002/MUM/2024 Caregiver Saathi Foundation In the result, the appeal of the assessee is allowed for statistical purposes. nounced in the open Court on 21/01/2025. - Sd/ (RAHUL CHAUDHARY) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai ITA No. 4002/MUM/2024 6 Caregiver Saathi Foundation In the result, the appeal of the assessee is allowed for /01/2025. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai "
Other Referred Cases
Shri Pushkar Foundation in ITA No. 2714/Mum/2024
Laws Referred To
Income-tax Act, 1961
1:1 Consultation on FEMA Compliance
₹1
1:1 Consultation on Salary Structuring
₹1
1:1 Consultation on Startup Compliance
₹1
Sales Forecasting Sheet
₹100
Rectification Letter - Application for rectification of mistake under Section 154 of I.T. Act
Mehul₹0
Residency Rules: Income Tax Act, 1961 vs Income Tax Bill, 2025 — A Subtle Yet Significant Shift!
Team Counselvise - February 18, 2026
Why Meesho got ₹1,500 Crore Tax Demand ?
Team Counselvise - March 09, 2026
Transfer Pricing and International Tax Reforms under Finance Bill, 2026: A Practical Overview
Team Counselvise - February 07, 2026