DR. G. ATHMALINGAM MEDICAL AND EDUCATIONAL TRUST,CHENNAI V. ITO, EXEMPTIONS WARD-3, CHENNAI

ITA 611/CHNY/2025

AI Insights

The case involves Dr. G. Athmalingam Medical and Educational Trust, which appealed against the order of the Learned Additional Commissioner of Income Tax (Appeals) that denied them exemption under Sections 11 & 12 of the Income Tax Act, 1961 for the Assessment Year 2016-17. The denial was initially based on the non-filing of Form 10B within the due date prescribed under Section 139(1) of the Act. However, the assessee contended that the delay in filing Form 10B was condoned by CBDT Circular No.10 of 2019. The Tribunal found that the Form 10B was filed within the due date prescribed under Section 139(4) of the Act, thus reversing the lower authority's decision and allowing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312880 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2016-2017
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M.P. GURUPRASAD
• Assessee Lawyers: N.V.KRISHNAN
• Section: 11; 139; 12; 10B

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.611/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2016-17 Dr. G. Athmalingam Medical and Educational Trust, Represented by its trustee G. Athmalingam, 14, Plot No.3046 Z Block, 4th Street, 13th Main Road, Anna Nagar West, Chennai-600040. [PAN: AAATD 8907H] Vs. The Income Tax Officer, Exemptions Ward-3, Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : Shri N.V.Krishnan, Advocate HIथF की ओर से /Respondent by : Shri M.P.Guruprasad, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 23.04.2025 घोषणा की ता रीख /Date of Pronouncement : 30.04.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2016-17 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-2, Ludhiana [hereinafter “Addl. CIT(A)”] dated 30.12.2024. ITA No.611/Chny/2025 :- 2 -: 2. The assessee is a trust and filed its return of income on 10.11.2016, declaring total income at Rs. Nil. However, the CPC vide intimation u/s. 143(1) of the Income-tax Act, 1961 (hereinafter “the Act”) denied the claim of exemption u/s. 11 & 12 of the Act and determined total income of Rs. 29,99,127/-, for the reason that form 10B was not filed within due date prescribed u/s. 139(1) of the Act, i.e., on 17.10.2016. Aggrieved, the assessee filed an appeal before Ld. Addl. CIT(A), contending that the delay in filing Form-10B for A.Y 2016-17 stood condoned in terms of CBDT Circular No.10 of 2019. However, the Ld. Addl. CIT(A) had dismissed the appeal. 3. The Ld. Authorized Representative (A.R) of the assessee has submitted that the delay in filing Form-10B has been condoned by CBDT Circular No.10 of 2019 and hence, exemption u/s. 11 of the Act ought to have been allowed. 4. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities and argued that the CBDT circular condoned the delay in filling Form 10B, only in those cases where return was filled within the time provided in section 139(1) . 5. We have heard the rival submissions, and perused the materials available on record. The CPC in the intimation u/s 143(1) of the Act ITA No.611/Chny/2025 :- 3 -: has disallowed the claim of exemption us/. 11 & 12 of the Act as assessee has not filled Form-10B within the due date. The Ld. AR has submitted that assessee has filled Form 10B belatedly on 10.11.2016 and CBDT vide Circular No.10 of 2019 dated 20.05.2018 has condoned the delay in filing Form-10B for A.Y 2016-17 & A.Y 2017-18 in cases where the audit report was obtained before filing of return of income and was furnished after the return, but before the time allowed specified u/s. 139 of the Act. In the present case, the assessee has filed Form 10B within the due date prescribed u/s. 139(4) of the Act, therefore covered by the CBDT circular and delay in filing Form 10B stands condoned. We, therefore reverse the order of Ld. Addl CIT(A) and direct the A.O to allow the benefit of Section 11 & 12 of the Act considering the Form 10B filed within the prescribed date. In view of the above, the appeal filed by the assessee is allowed. 6. In the result, the appeal filed by the assessee is allowed. Order pronounced on 30th April, 2025. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 30th April, 2025. EDN/- ITA No.611/Chny/2025 :- 4 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "