INCOME TAX OFFICER WARD-3 EXEMP, NAGPUR V. PRERNA SAMAJIK SANSKRITIK BAHUDDESHIYA SHIKSHAN SANSTHA, ARMORI, GADCHIROLI

ITA 408/NAG/2024

AI Insights

The case involves an appeal by the Income Tax Officer (ITO), Ward-3, against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], which had allowed the exemption claim of Rs. 4,95,83,899 under section 11 of the Income Tax Act for the assessee, Prerna Samajik Sanskritik Bahuddeshiya Shikshan Sanstha. The revenue contested the CIT(A)'s decision on grounds that the assessee did not meet the necessary conditions for exemption under section 11, specifically regarding the timely filing of Form No. 10B and the registration status of the trust. However, the CIT(A) had found that the delay in filing Form No. 10B was condoned and thus, the exemption should be granted. The tribunal agreed with the CIT(A)'s findings and dismissed the revenue's appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 842256 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2022-2023
• Appeal Filed On: 15-07-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PANKAJ KUMAR
• Assessee Lawyers: MILIND BHUSARI
• Keywords: Condonation of delay
• Section: 11; 119(2)(b); 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, NAGPUR BEFORE SHRI PAWAN SINGH, JM & SHRI KHETTRA MOHAN ROY, AM ITA No. 408/Nag./2024 (Assessment Year : 2022–23) ITO, Ward–3, BSNL RTTC Building, Seminary Hills, Maharashtra-440006. ……………. Appellant v/s Prerna Samajik Sanskritik Bahuddeshiya Shikshan Sanstha, C/o Ambedkar Vidhyalaya, Armori, Gadchiroli, Maharashtra–441208. PAN – AACTP8940N ……………. Respondent Revenue by : Shri Pankaj Kumar, CIT–DR Assessee by : Shri Milind Bhusari, Adv. Date of Hearing –18/02/2026 Date of Order – 25/02/2026 O R D E R Per: Khettra Mohan Roy, AM The present appeal by the revenue is directed against the impugned order dated 17/05/2024, passed by the learned Commissioner of Income Tax (Appeal)/Addl/JCIT(A)–1, Chandigarh [for short, “ld. CIT(A)”] for the Assessment Year (A.Y.) 2022–23. The Revenue has raised the following grounds of appeal: “A] On the facts and circumstances of the case the Ld. Addl/Jt.CIT(A)-1, Chandigarh erred in directing the Assessing Officer to delete the addition of Rs. 4,95,83,899/-made under section Printed from counselvise.com 2 ITA No. 408/Nag./2024 Prerna Samajik Sanskritik Bahuddeshiya Shikshan Sanstha 143(1) of the Act by rejecting the claim of exemption u/s 11 of the Act without appreciating the fact that the CIT(E), Pune has rejected the application of the assessee trust in Form No 10AB and cancelled the provisional registration granted on 04/04/2022 vide order in Form No. 10AD on 23/09/2023 which makes the trust ineligible for claiming exemption u/s 11 of the Act as the assessee trust doesn't have a valid registration for the year under consideration which is a mandatory condition for claiming exemption u/s 11 of the Act as laid down in section 12A(1)(ac) of the Act. B] On the facts and circumstances of the case the AddI/Jt CIT(A)-1. Chandigarh erred in directing the Assessing Officer to delete the addition of Rs.4,95,83,899/-made under section 143(1) of the Act by rejecting the claim of exemption u/s 11 of the Act without appreciating the fact that the assessee trust has filed its R.O.I. for the year under consideration on 24/12/2022 after the extended due date for filing of R.O.I for AY 2022-23 which makes the trust ineligible for claiming exemption u/s 11 of the Act as the assessee trust doesn't fulfil the condition as laid down in section 12A(1)(ba) of the Act for claiming exemption u/s 11 of the Act.” 2. The ld. CIT(A) has granted relief by holding as follows: “Under these grounds, the appellant has challenged the denial of exemption of Rs.4,95,83,899/- claimed under section 11 of the Act. I have considered the submission made by the assessee and also gone through the material available. The CPC has denied the exemption claimed under section 11 of the Act on the ground that the Form No. 10B was not filed within the prescribed time limit and charged the tax on the entire receipts without giving benefit of expenditure towards objects of the trust. As submitted by the appellant, the CIT(Exemption), Pune has already condoned the delay in filing the Form No. 10B vide order dated 26-05-2023 under section 119(2)(b) of the Act. With condonation of delay so granted before processing under section 143(1), there was no basis with the Printed from counselvise.com 3 ITA No. 408/Nag./2024 Prerna Samajik Sanskritik Bahuddeshiya Shikshan Sanstha CPC for rejection of claim of exemption on account of delay in filing the Form 10B and therefore, adjustment made at the time of processing of return is not sustainable and therefore, adjustment made deserves to be deleted. 6. In view of the above facts, the both the grounds of appeal are allowed and accordingly, addition of Rs.4,95,83,899/- made under section 143(1)(a) of the Act by rejecting the claim of exemption under section 11 of the Act is deleted.” 3. At this juncture, it is worthwhile to refer to Circular no. 23/2022 dated 03.11.2022. 4. The ld. Sr. DR failed to bring any evidences to controvert the cogent findings of ld. CIT(A). Further, Circular no. 23/2022 strengthens the case of assessee, hence there is no merit in revenue’s appeal. 5. In the result, the appeal of revenue is accordingly dismissed. Order pronounced in the open Court on 25/02/2026 Sd/– PAWAN SINGH JUDICIAL MEMBER Nagpur dated 25/02/2026 Sd/–- KHETTRA MOHAN ROY ACCOUNTANT MEMBER Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. Printed from counselvise.com 4 ITA No. 408/Nag./2024 Prerna Samajik Sanskritik Bahuddeshiya Shikshan Sanstha True Copy By Order SK, SR. PS Sr. Private Secretary ITAT, Nagpur Printed from counselvise.com "