DELHI NEUROLOGICAL ASSOCIATION,DELHI V. ITO WARD EXEMPTIONS-1(3), DELHI

ITA 821/DEL/2025

AI Insights

The case involves the Delhi Neurological Association, which appealed against the order of the Commissioner of Income Tax (Appeals) - Patna, concerning the Assessment Year 2023-24. The primary issue was the denial of benefits under sections 11 and 12 of the Income Tax Act due to an alleged delay in filing the Audit Report in Form 10BB. The Association argued that the report was filed within the extended deadline set by a CBDT circular, although there was a procedural lapse in accepting the report on the e-filing portal. The Tribunal examined the submissions and the procedural compliance and concluded that the substantive requirements were met within the extended deadline, thus allowing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717832 (ITAT-DELHI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2023-2024
• Appeal Filed On: 12-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Keywords: Set aside; Procedural lapse
• Section: 11; 12A; 12

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.821/िदʟी/2025 (िन.व. 2023-24) ITA No.821/DEL/2025 (A.Y. 2023-24) Delhi Neurological Association, R.No. 529, Academic Block, Department of Neuro Surgery, Darya Ganj, Delhi 110002 ...... अपीलाथᱮ/Appellant PAN: AAAJD-0582-E बनाम Vs. Income Tax Officer, Ward-Exemption 1(3), Delhi ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/Appellant by : None ŮितवादीȪारा/Respondent by : Shri Manoj Kumar, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 20/05/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 13/08/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)/Additional/Joint Commissioner of Income Tax(Appeals)- Patna (hereinafter referred to as 'the CIT(A)') dated 24.12.2024, for Assessment Year 2023-24. 2. Brief facts of the case as emanating from records are: The assessee is registered u/s. 12A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). The assessee filed its return of income for the impugned assessment year declaring NIL income. The return of the assessee was processed u/s. 143(1) of the Act on 29.10.2024 making addition of Rs.20,18,585/- as the mandatory Audit Printed from counselvise.com 2 ITA No.821/Del/2025 (AY 2023-24) Report in Form 10BB was not filed within specified due date. Aggrieved by the addition, the assessee filed appeal before the CIT(A). Before the First Appellate Authority, the assessee explained that Audit Report in Form 10BB was furnished on 25.10.2023 i.e. within the extended period as specified by CBDT vide Circular No.16/2023 dated 18.09.2023. The CIT(A) dismissed appeal of the assessee and confirmed the addition. 3. Submissions made by ld. DR heard, orders of the authorities below examined. The solitary grievance raised by the assessee in appeal is denial of benefit u/s. 11 & 12 of the Act for alleged delay in filing of Audit Report in Form 10BB. The case of the assessee is that the assessee filed Audit Report in Form 10BB within the extended time along with audited balance sheet and return of income on 25.10.2023. The CBDT vide Circular No.16/2023 (supra) had extended due date for filing Form 10BB from 30.09.2023 to 31.10.2023. However, there was one procedural lapse that the Audit Report was first required to be uploaded by the Auditor on e-filing portal of the Department and then it is to be accepted by the assessee. Due to inadvertence, the assessee failed to accept that Audit Report. Inadvertent error was rectified by the assessee on 09.11.2023. The Revenue has not disputed filing of Form 10BB by the assessee. The Revenue has denied benefit of section 11 & 12 of the Act to the assessee as Form 10BB was filed beyond due date. Filing of Audit Report in prescribed Form 10BB is a mandatory requirement, which the assessee has complied with. The assessee has filed Audit Report within extended time as provided by the CBDT vide Circular No. 16/2023 however, the only flaw in filing of the said report was that the assessee was required to accept the Auditors Report uploaded by the auditor, which the assessee did on 09.11.2023 i.e. after the extended timeline. The Printed from counselvise.com 3 ITA No.821/Del/2025 (AY 2023-24) assessee has complied with substantive provisions in filing of Form 10BB within the due date. It is only the procedural lapse in not accepting Auditors Report uploaded by the Auditor. The benefit of section 11 & 12 of the Act cannot be denied to the assessee for the procedural defect which was rectified subsequently. The AO is directed to allow benefit of section 11 & 12 of the Act to the assessee. 4. In the result, impugned order is set aside and appeal of the assessee is allowed. Order pronounced in the open court on Wednesday the 13th day of August, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 13/08/2025 NV/- ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. Printed from counselvise.com 4 ITA No.821/Del/2025 (AY 2023-24) BY ORDER, //True Copy// (Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "