DCIT EXEMPTIONS CIRCLE 1(1), KOLKATA V. B P PODDAR FOUNDATION FOR EDUCATION, KOLKATA

ITA 637/KOL/2025

AI Insights

The case involves the B P Poddar Foundation For Education, a charitable trust, which appealed against the adjustment made under section 143(1) of the Income Tax Act, 1961, by the CPC, denying them exemption under section 10(23C)(via) for the assessment year 2022-2023. The CIT(A) had earlier allowed the exemption, which the revenue challenged. The main contention from the revenue was the non-filing of Form 10BB within the prescribed time, which the assessee argued was an inadvertent mistake due to a transition period oversight. The Tribunal dismissed the revenue's appeal, supporting the CIT(A)'s decision and acknowledging the filing of Form 10BB as per the CBDT Circular.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668956 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJA SENGUPTA
• Assessee Lawyers: S.K.TULSIAYN
• Keywords: Condonation of delay; Reasonable cause; Charitable institution
• Section: 12A; 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER आयकर अपील सं /ITA No.637/KOL/2025 (निर्धारण वर्ा /Assessment Year. : 2022-2023) DCIT Exemptions Circle-1(1), Kolkata Vs B P Poddar Foundation For Education, 18, Poddar Court, Rabindra Sarani, Kolkata-700071 PAN No. :AAATB 5418 M (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) रधजस्व की ओर से /Revenue by : Shri Raja Sengupta, CIT-DR निर्धाररती की ओर से /Assessee by : Shri S.K.Tulsiayn, Advocate सुनवाई की तारीख / Date of Hearing : 18/06/2025 घोषणा की तारीख/Date of Pronouncement : 23/06/2025 आदेश / O R D E R Per George Mathan, JM : This is an appeal filed by the revenue against the order dated 23.12.2024, passed by the ld. Addl./JCIT(A)-9, Mumbai for A.Y.2022- 2023. 2. Shri Raja Sengupta, CIT-DR appeared on behalf of the revenue and Shri S.K.Tulsiyan, Advocate appeared on behalf of the assessee. 3. The appeal filed by the revenue is delayed by 26 days for which the revenue has filed the necessary condonation petition. The reasons given are plausible and same are accepted. Accordingly, the delay is condoned and the appeal is admitted for hearing. 4. At the time of hearing, ld.AR has filed his written submission which read as under :- BEFORE THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA \"A\" BENCH. KOLKATA. ITA No.637/Kol/2025 2 IN THE MATTER OF BP PODDAR FOUNDATION FOR EDUCATION 18. Poddar Court, Rabindra Sarani, Kolkata-700 001. PAN: AAATB5418M AND IN THE MATTER OF ITA NO. 637/KOL/2025 Α.Υ. 2022-23 Written Submission before the Hon'ble ITAT on behalf of the Assessee-Trust (the Respondent) Your Honours, 1. This Submission before your Honours is made in response to the ground of appeal raised by the Revenue, which challenges the order of the CIT(A) dated 23/12/2024 (Order No. ITBA/APL/S/250/2024-25/1071487828(1)), wherein the CIT(A) allowed the exemption under section 10(23C)(via) by deleting the adjustment made under section 143(1), despite the alleged non- filing of Form 10BB by the Assessee-Trust. 2. Brief Facts of the Case 2.1. The Respondent is a Charitable Trust and was duly registered under section 12A of the Income Tax Act, 1961, vide registration dated 26/02/1998, and has been regularly assessed as a Charitable Trust. For the year under appeal being the A.Y. 2022-23, the trust also obtained provisional approval under section 10(23C)(via) vide Form 10AC dated 30/09/2021 for A.V.s 2022-23 to 2024-25. 2.2. The Assesee-Trust for the said A.Y.2022-23 filed its ROI on 04/11/2022 but while preparing its Income Tax Return and the related documents for the said A.Y. 2022-23, the office of the Trust inadvertently continued to claim its tax exemption u/s 11/12A as against the now applicable section 10(23C)(via)) and duly filed the Form 10B omitting to thus file the required Form 10BB on time. This error arose due to the office of the Trust being unaware of the changes and thus out of a genuine oversight during the transition period when the Trust was newly registered under section 10(23C)(via) (vide Form 10AC dated 30/09/2021) and adapting to new compliance requirements. Thus the Assesee-Trust inadvertently filed its ROI - claiming exemption under \"Section 11\" instead of \"Section 10(23C)(via)\" in Serial No. (A17) (ii) of Schedule Part A- General and - laid down the \"Details of Registration/provisional Registration...\" in Serial No. (419) as \"124/12AA/12AB\" as against the correct section being \"10(230)(via)\". The Date of Registration as being 30/09/2021 and also the Registration No. as AAATB5418MD20 was however correctly filled up by the Assesee-Trust. ITA No.637/Kol/2025 3 The ITR, the Form 10B and the Form 10AC so filed by the Assessee Trust are all enclosed as under vide a Paperbook filed before your Honours along with this Submission: - \"Annexure A: ITR\"-Pgs 01-43 - \"Annexure B: Form 10B\"-Pgs 44-47 and - \"Annexure C: Form 10AC-Pgs 48-50 2.3. The CPC while processing the Return issued Notice dated 14/02/2023 proposing an adjustment u/s 143(1)(a) of the Act of Rs 21. 07, 66,406/- on the alleged reasoning of mismatch between (i) the details provided at St.No A19 of Schedule Part-A General of ROI (Details of Registration) and (ii) the information as provided in Form 10AC. The reasoning as noted in the proposed adjustment u/s 143(1)(a) of the Act is reproduced below in verbatim: \"Particulars: The details provided at Sl. No. A19 of Schedule Part A General are not matching with the information as per Form 10AC. Hence, the amount mentioned at Sl. No. 4 & 6(viii) of Part BI-Part B TI not allowable.\" Copy of the said Notice dated 14/02/2023 is enclosed as \"Annexure D: Notice dated 14/02/2023\"-Pg 51. However, ignoring the response dated 16/03/2023 of the Assesee wherein it disagreed with the said variance, the Intimation u/s 143(1) of the Act dated 04/04/2023 was passed wherein, denying the deduction of the exemption of Rs.21,07,66,406/-, a demand of Rs.10,68,46,390/- was raised on the Appellant Trust. Copy of the Response of the Assesee Trust along with the Intimation u/s 143(1) dated 04/04/2023 is enclosed as under: \"Annexure E: Response of Appellant Trust\" - Pg 52 \"Annexure F: Intimation u/s 143(1) dated 04/04/2023 for the A.Y.2022-23.\"-Pgs 53 -62 2.3. In appeal, the Ld. CIT(A) after considering the factual matrix and submissions of the Assesee Trust, rightly appreciating the inadvertent error on the part of the Assesee Trust, held at Page 8 of his Order that the Trust being registered u/s 12A of the Act and the provisional approval having been received in Form 10AC on 30/09/2021 for the A.Y.s 2022-23 to 2024-25, the Assesee Trust duly stood eligible for exemption for the said A.Y.2022-23 u/s 10(23c)(via) instead of the wrongly claimed section 11/12A. ITA No.637/Kol/2025 4 Thus allowing full exemption of income u/s 10(230)(via) of the Act, the addition so made by the CPC was deleted and full relief was granted to the Assesee-Trust. 2.4. The Revenue however now before your Honours contends that the CIT(A) erred in allowing the exemption, as the statutory requirement of filing Form 10BB within the prescribed time was not fulfilled. 3. Submissions of the Respondent Assessee-Trust 3.1. In view of the facts as laid above and the ground raised before your Honours by the Revenue, it is most humbly stated that the Ground so raised whereby the exemption allowed to the Assesee Trust is sought to be restored in the absence of the Form 108B is completely irrelevant and thus invalid and stands no ground on merits. 3.2. It is very much the case of the Assesee Trust that the issue for addition/disallowance of the exemption was the availability of the tax exemption u's section 12A or under section 10(23C)(via) of the Act. However, neither the CPC while processing the intimation under section 143(1) nor the CIT(A) in his detailed appellate order has made any adverse finding or disallowance on the ground of non-filing or delayed filing of Form 10BB. The sole basis of adjustment by CPC was the mismatch between the section selected in the ROI and the information as per Form 10AC arising out of the claim u/s 12A or us 10(23C)(via) of the Act. Also as laid out above also, the Ld. CIT(A) decided the appeal only on this ground and no addition or observation was made regarding non-filing or delayed filing of Form 10BB. The Ld. CIT(A), finding and accepting the inadvertent mistake committed by the Assessee Trust, allowed the Assessee Trust full exemption u/s 10(23C)(via) as against the section 12A as wrongly claimed by the Assesee. 3.3. Thus as duly allowed by the Ld. CIT(A), the claim of the exemption now u/s 10(23C)(via) of the Act led to the inadvertent error of the Assesee Trust in filing the Form 10B and not filing the required Form 10BB within the prescribed time limit. The delay however was beyond 365 days but within 3 years from the end of the A.Y.2022-23 being on 31.03.2026 and thus, as laid out above also, the Assesee Trust stood covered by the CBDT Circular No. 16/2024 dated 18/11/2024 which duly and amply provides that where the delay in filing Form 10BB is beyond 365 days but does not exceed 3 years, the application for condonation of delay can be considered by the Commissioner of Income Tax (Exemptions) provided the applicant satisfies that it was prevented by reasonable cause from filing the same within the stipulated time. ITA No.637/Kol/2025 5 3.4. Next, it is submitted before your Honours that pursuant to the Order of the Ld. CIT(A). in correction of the inadvertent mistake causing delay in filing the Form 10BB, the Assesee Trust has now, in terms of the said CBDT Circular, duly filed the Application for condonation before the Commissioner of Income Tax (Exemptions) in Kolkata vide its Letter dated 05/06/2025 along with a Copy of the Form 10BB. The said Letter for Condonation of Delay dated 05/06/2025 and also the CBDT Circular dated 18/11/2024 is duly attached as under for your kind perusal: \"Annexure G: Letter for Condonation of Delay in Filing Form 10BB dated 05/06/2025\"-Pgs 63-64 \"Annexure H: CBDT Circular No. 16/2024 dated 18/11/2024\"- Pgs 65-66 Thus, the Form 10BB now prayed to be filed within the prescribed time limit (as allowed vide the Circular), the delay, if any at all, in filing Form 10BB stands curable and does not in any way form a ground for disallowance of the tax emption as is sought by the Revenue before tour Honours. 3.5. Thus in view of all the above, concluding our Submission, it is reiterated before your Honours that the non-filing of the Form 10BB with the ROI was an inadvertent mistake on the part of the Assesee-Trust whereby the tax exemption was claimed incorrectly u/s 12A instead of section 10(23C)(via) of the Act. The provisional Approval u's 10(23C)(via) vide the Form 10AC was duly granted by the department and has been a matter of record all through. Also the Id. CIT(A) has rightly held that the Trust was eligible for exemption under section 10(23C)(via) and has deleted the addition made by the CPC. Further also the Assesee Trust having already filed the Application for Condonation for filing the Form 10BB before the CIT (Exemptions), the inadvertent error on the part of the Trust in not filing the Form 10BB stands corrected. The Form 10BB, fully completed and signed is being filed here before your Honours with the request to take the same on record. The same is attached as under: \"Annexure 1: Form 10BB\"-Pgs 67-69 3.6. Thus, the Assesee Trust, having placed the Form 10BB along with this Submission which is well within the time allowed vide the CBDT Circular No.16/2024 dated 18/11/2024, it is humbly prayed before your Honours that the Order passed by the Ld. CIT(A) may kindly be upheld and the Ground raised by the Department for non- filing of the Form 10BB may be dismissed. ITA No.637/Kol/2025 6 5. It was submitted by the ld. CIT-DR that the assessee is a charitable trust which was duly registered u/s.12A of the Act. It was the submission that in response to the return filed by the assessee an intimation u/s.143(1) of the Act had been issued wherein the assessee’s claim for exemption u/s.11 of the Act was denied. It was the submission that the assessee had registration u/s.10(23C)(via) of the Act and had also filed the Form 10B. It was the submission that the ld. JCIT(A) had considered the fact that the assessee had the registration under 10(23C) of the Act, allowed assessee’s claim and had quashed the intimation issued u/s.143(1) of the Act. It was the submission that Form 10BB was also filed within the time allowed by the CBDT Circular No.16/2024 dated 18.11.2024. It was the submission that the order of the JCIT(A) be reversed and that of the CPC be restored. 6. In reply, ld. AR submitted that the mistake had taken place because of the error in the office of the trust being unaware of the changes and on account of the oversight during the transaction period when the trust was newly registered u/s.10(23C) of the Act. It was the submission that the necessary Form 10BB had also been filed within the time allowed by the CBDT in Circular No.16/2024 dated 18.11.2024. It was the submission that the order of the ld. JCIT(A) was liable to be upheld. 7. We have considered the rival submissions. It is noticed that the revenue has not been able to point out any specific error in the order of the ld. JCIT(A)-9, Mumbai. The assessee is entitled to the benefit of Section 10(23C)(via) of the Act and the requisite Form 10BB has also been filed. The provisional approval under Section 10(23C)(via) of the Act ITA No.637/Kol/2025 7 is also available with the assessee for the assessment years 2022-2023 & 2024-2025 vide an order dated 30.09.2021. This being so, as no error has been pointed out by the revenue in the order passed by the ld. JCIT(A)-9, Mumbai in the case of the assessee, the appeal filed by the revenue stands dismissed. 8. In the result, appeal of the revenue stands dismissed. Order pronounced in the open court on 23/06/2025. Sd/- (SANJAY AWASTHI) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनांक Dated 23/06/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// "