JAMIA DINEEA MANCHURIA MADRASSA,GOALPARA, ASSAM V. ACIT CIR-2, GUWAHATI, GS ROAD, GUWAHATI

ITA 242/GTY/2024

AI Insights

The case involves Jamia Dineea Manchuria Madrassa, a registered trust, which appealed against the order of the Commissioner of Income Tax (Appeals) that upheld the addition of \\u20b949,69,022 to the trust's income. This addition was initially made by the Assessing Officer due to the late filing of the audit report in Form 10B, which was filed 17 days past the due date. The trust argued that this delay was procedural and should not affect their claim for deduction under Section 11 of the Income Tax Act. The Tribunal agreed with the trust, referencing several precedents that supported the view that such procedural lapses should not result in the rejection of claims under Section 11.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712295 (ITAT-GUWAHATI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Other Referred Cases: M/s Gangji Shamji Chedda (Princewala) Chartable Trust Vs. DCIT, Hari Gyan Pracharak Trust Vs. The DCIT, Gyandeep Charitable Trust Vs. ADIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY JHA
• Assessee Lawyers: RAJKUMAR AGARWALA
• Keywords: Set aside; Charitable institution; Procedural lapse
• Section: 11; 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL ‘GUWAHATI’ BENCH, GUWAHATI’ BEFORE SHRI RAJESH KUMAR, AM AND SHRI MANOMOHAN DAS, JM ITA No.242/GHY/2024 (Assessment Year:2021-22) Jamia Dineea Manchuria Madrassa JoybhumChunari, Goalpara- 783129, Assam Vs. ACIT, Cir-2, Guwahati Aayakar Bhavan, Christian Basti, G.S. Road, Assam-781005 (Appellant) (Respondent) PAN No. AABAJ2071J Assessee by : Shri Rajkumar Agarwala, AR Revenue by : Shri Sanjay Jha, DR Date of hearing: 08.07.2025 Date of pronouncement: 28.07.2025 O R D E R Per Rajesh Kumar, AM: This appeal is preferred by the assessee against the order of the Commissioner of Income Tax, Appeal (hereinafter referred to as the “Ld. CIT(A)”] dated 21.10.2024 for the AY 2021-22. 02. The only issue raised by the assessee is against the order of ld. CIT (A) upholding the order passed u/s 143(1) of the Act by the ld. AO, CPC, thereby confirming the addition of ₹49,69,022/-. 03. The facts in brief are that the assessee is a registered Trust and filed the return of income u/s 139(1) of the Act on 04.03.2022, declaring total income at ₹ nil. The assessee’s trust is registered u/s Printed from counselvise.com Page | 2 ITA No. 242/GTY/2024 Jamia Dineea Manchuria Madrassa; A.Y. 2021-22 12A(1)(ac)(i) of the Act. While processing the return of income u/s 143(1) of the Act, the ld. AO CPC made an addition of ₹44,69,022/- by disallowing the deduction claimed u/s 11 of the Act. The disallowance was made due to late filing of Audit Report in Form 10B by 17 days as the due date of filing Form 10B was 15.02.2022. 04. Before the first appellate authority, the assessee contended that this delay is only a procedural delay and is not vital to claim the deduction u/s 11 of the Act. However, the appeal was dismissed by the ld. CIT (A). 05. After hearing the rival contentions and perusing the materials available on record, we find that the only reason cited for disallowing the claim of deduction u/s 11 of the Act by the ld. CIT (A) was only late filing of Form 10B while the due date of filing the Form 10B was 15.02.2022. The said for was filed on 04.03.2022 well before processing of the return. Now, the issue before us is whether there was late filing of audit form 10B which would deprive the trust from claiming the deduction u/s 11 of the Act. In our opinion, the delay in filing the audit form 10B is not vital and accordingly, the exemption u/s 11 of the Act cannot be denied to the trust. The case of the assessee find support from the decisions of M/s Gangji Shamji Chedda (Princewala) Chartable Trust Vs. DCIT, in ITA No. 1528/MUM/2022, Hari Gyan Pracharak Trust Vs. The DCIT in ITA No. 245/Ahd/2021, Gyandeep Charitable Trust Vs. ADIT in ITA No. 555/AHD/2023. In all the above decisions, it has been held that the delay in filing the audit report is just a procedural lapse on the part of the assessee and it would not result in any rejection of claim u/s 11 of the Act. Accordingly, we set aside the order of ld. CIT (A) and direct the ld. AO Printed from counselvise.com Page | 3 ITA No. 242/GTY/2024 Jamia Dineea Manchuria Madrassa; A.Y. 2021-22 to allow the exemption u/s 11 of the Act to the assessee. The appeal of the assessee is allowed. 06. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 28.07.2025. Sd/- Sd/- (MANOMOHAN DAS) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 28.07.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Guwahati Printed from counselvise.com "