F.R.P.INSTITUTE,CHENNAI V. DLC WX AO NUMBER 3 RANGE 201, CHENNAI

ITA 2728/CHNY/2025

AI Insights

The case involves the FRP Institute, a charitable trust, which appealed against the order of the Commissioner of Income Tax (Appeals) for the Assessment Year 2019-20. The primary issue was the non-condonation of delay in filing Form-10B, which is essential for claiming exemption under Section 11 of the Income Tax Act. The assessee argued that the delay was due to inadvertent oversight and pandemic-related disruptions. Initially, the Form-10B was filed late, and the subsequent appeal to the FAA was also delayed significantly. The Tribunal found merit in the assessee's submission that there was a reasonable cause for the delay and directed the FAA to reconsider the matter.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 827481 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Appeal Filed On: 03-10-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LATCHANA
• Keywords: Condonation of delay; Reasonable cause; Charitable institution
• Section: 11; 12A; 10B

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ ा यपीठ, चे\u0012ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0015ी यस यस िव\u0018ने\u001a रिव, ा ियक सद एवं सु\u0015ी पदमा वती यस, लेखा सद क े सम\" BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND MS. PADMAVATHY.S, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2728/Chny/2024 िनधा #रण वष# /Assessment Year: 2019-20 FRP Institute, 4, Avinash Bhuvan, Dixit Cross Road No.1, Vile Parle Park, Mumbai Suburban – 400 057. PAN: AAATF 1026B Vs. The Income Tax Officer, Exemption Ward-3, Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ& की ओर से/ Appellant by : None (Adjournment petition filed by Ld. A.R, Deepak Anant, C.A) ()थ& की ओर से /Respondent by : Ms. Latchana, JCIT सुनवा ई की ता रीख/Date of Hearing : 16 .12.2025 घोषणा की ता रीख /Date of Pronouncement : 07.01.2026 आदेश / O R D E R PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/Addl./JFAA, Panchkula (in short \"FAA\") passed u/s. 250 of the Income Tax Act, 1961 (in short \"the Act\") dated 05.08.2025 for Assessment Year (AY) 2019-20. The issue contended in this appeal pertains to the FAA not condoning the delay in filing Form-10B. Printed from counselvise.com ITA No.2728/Chny/2025 FRP Institute :- 2 -: 2. The assessee is a charitable trust and is registered u/s. 12A of the Act. The main object of the trust is to upgrade the composites technology by promoting the use of composites projects and human skills development by imparting knowledge. The assessee filed the return of income for A.Y 2019- 20 on 31.10.2019 declaring total income of Rs. 27,850/- after taking the benefit u/s. 11 of the Act. The assessee was required to furnish the audit report in Form-10B before the due date prescribed u/s. 139(1) of the Act. However, due to inadvertent oversight and pandemic related disruptions, the audit report was omitted to be filed within the prescribed date. The assessee came to know of the omission when the refund of the subsequent A.Y was adjusted against the demand of the year under consideration. The assessee subsequently submitted Form-10B on 04.08.2022 with a delay of 1008 days. The return was processed by CPC u/s. 143(1) where the exemption u/s. 11 of the Act was denied on the ground of delayed filing of Form-10B. Aggrieved, the assessee filed further appeal before the FAA. 3. There was a delay of 1750 days in filing the appeal before the FAA. The FAA dismissed the appeal in limine without condoning the delay. 4. We have heard the both the parities, perused the material available on record. We notice that the assessee has filed a petition before FAA for condonation of delay where it is mentioned that the delay in filing the appeal was due to the reason that the assessee was trying to correct the delay in filing the Form-10B by filing condonation petition u/s.119(2)(b) of the Act which got rejected and that the assessee had submitted a second application. It is further submitted that the second application was processed and various details are called for however, the same was also rejected. The assessee also Printed from counselvise.com ITA No.2728/Chny/2025 FRP Institute :- 3 -: submitted that the delay in Form-10B may also be considered in the light of Circular No.16/2024 dated 18.11.2024. Accordingly it was argued that the delay of 1750 days in filing the appeal before the FAA was due to the reason that the assessee was attempting to correct the delay in filing Form-10B by filing condonation u/s.119(2)(b) of the Act and that the delay in filing the appeal before FAA was due to the fact that assessee was not properly advised by the counsel who was taking care of the tax matters of the assessee. Considering the facts and circumstances unique to the present case we are of the view that there is merit in the submission of the assessee that there is a reasonable cause for the delay in filing the appeal before the FAA and that the delay is bonafide. Therefore, we are remitting the matter back to the FAA with a direction to condone the delay in filing the appeal and to consider the issue of delay in filing Form-10B afresh keeping in mind the CBDT Circular issued in this regard and the relevant submissions of the assessee. The assessee is directed to file the necessary details and evidences in support of the claim that the delay filing Form 10B was due to a reasonable cause and cooperate with appellate proceedings. It is ordered accordingly. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 07th day of January, 2026 at Chennai. Sd/- Sd/- (यस यस िव\u0018ने\u001a रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (पदमा वती यस) (Padmavathy.S) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 07th January, 2026. EDN, Sr. P.S Printed from counselvise.com ITA No.2728/Chny/2025 FRP Institute :- 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/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "