GUJARAT UNIVERSITY STARTUP AND ENTREPRENEURSHIP COUNCIL GUSEC,AHMEDABAD V. THE INCOME TAX OFFICER, WARD 1 (EXEMPTIONS) , AHMEDABAD

ITA 493/AHD/2025

AI Insights

The case involves the Gujarat University Startup and Entrepreneurship Council (GUSEC) appealing against the order of the CIT(A) which confirmed the disallowance of expenditure amounting to Rs. 41,31,250 for the assessment year 2023-24. The initial assessment order was passed under section 143(1) of the Income Tax Act by the Assessing Officer, which was later upheld by the CIT(A). The primary contention was the late submission of Form 10B, which the assessee argued was due to technical glitches and a change in management, leading to a delay of two months beyond the statutory deadline. The Tribunal found merit in the assessee's argument regarding the delay being non-deliberate and remanded the matter back to the CIT(A) for re-evaluation with the late-filed Form 10B.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396944 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAVINDRA
• Assessee Lawyers: CHIRAG SHAH
• Keywords: Tax effect
• Section: 10B

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before Dr. BRR Kumar, Vice President And Ms. Suchitra Kamble, Judicial Member Gujarat University Startup and Entrepreneurship Council GUSEC, Estate Dept, Navrangpura-380009 PAN: AAGCG7683N (Appellant) Vs The ITO, Ward- 1(Exemption) Ahmedabad (Respondent) Assessee by: Shri Chirag Shah, A.R. Revenue by: Shri Ravindra, Sr. D.R. Date of hearing : 08-05-2025 Date of pronouncement : 30-05-2025 आदेश/ORDER Per Suchitra Kamble, Judicial Member: This is an appeal filed against the order dated 07-02- 2025 passed by CIT(A)/Addl/JCIT(A)-2, Gurugram for assessment year 2023-24. 2. The grounds of appeal are as under:- “1. The assessment order passed u/s 143(1) of Income Tax Act by the Assessing Officer and confirmed by the first appellate authority u/s 250 is bad in law and deserved to be uncalled for. 2. The assessing officer as well as first appellate authority, has erred in law and on facts in making and confirming respectively the disallowance of expenditure of Rs. 41,31,250/-. The same deserves to be deleted. ITA No. 493/Ahd/2025 Assessment Year 2023-24 I.T.A No. 493/Ahd/2025 Gujarat University Startup & Entrepreneurship Council, A.Y. 2023-24 2 The appellant craves to reserve his right to add, alter, amend, or delete any ground of appeal during the course of hearing. Total Tax Effect Rs. 4,49,350/-” 3. The return of income was filed by the assessee on 30-12- 2023 declaring total income at Rs. nil. The return of assessee was processed at CPC, Bengaluru and demand of Rs. 4,49,350/- was raised by CPC on 29-10-2024 vide intimation order u/s. 143(1) dated 29-10-2024. The Assessing Officer disallowed the amount accumulated or set apart up to 15% claimed by the assessee for the assessment year 2023-24. 4. Aggrieved by the additions made by the CPC, Bangalore, the assessee filed appeal before the CIT(A) and the CIT(A) dismissed the appeal of the assessee. 5. The ld. A.R. submitted that the CIT(A) has mentioned that trust are obligated to file Form 10B which is mandatory and the assessee trust has submitted the Form 10B on 30-08-2023 while the dead line for filing Form 10B one month prior to the due date submitting the return. The due date for submitting the return in case of the assessee was 30-11-2023 and there was a delay of two months in filing the Form 10B. The A.R. submitted that due to technical glitches, the assessee could not file Form 10B within the stipulated time and also along with the return of income on 30-11-2023. The ld. A.R. therefore submitted that the said delay be condoned and Form 10B should be accepted and accordingly accept the income of the assessee counsel as per return of income filed by the assessee counsel. 6. The ld. D.R. relied upon the intimation order dated 29-10- 2024 and the order of the CIT(A). I.T.A No. 493/Ahd/2025 Gujarat University Startup & Entrepreneurship Council, A.Y. 2023-24 3 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the assessee has filed the audit report in From 10B on 30-12- 2023 thereby submitted the same after two months as per the statutory date. The assessee counsel submitted that there was a change in the management in 2023 (F.Y. 2023-24) and therefore the statutory Form 10B could not be filed within the stipulated date as well as with the return of income. Therefore, the delay was not deliberate or intentional and hence Form 10B should have been taken on record. Therefore, we remand back the matter to the file of CIT(A) and consider Form 10B and the delay is condoned. The CIT(A) will adjudicate the matter after taking into account Form 10B and pass the appropriate order. 8. In the result, the appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open court on 30-05-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 30/05/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद "