JUBAYER MASUD EDUCATIONAL AND CHARITABLE TRUST,BONGAIGAON V. ITO, WARD - 2(3) EXEMP, GUWAHATI, GUWAHATI

ITA 23/GTY/2023

AI Insights

The case involves Jubayer Masud Educational And Charitable Trust, which appealed against the order of the National Faceless Appeal Centre, Delhi, which denied them the benefit of exemption under Section 11 of the Income Tax Act, 1961, due to a belated filing of the audit report in Form 10B. The Tribunal considered the impact of the COVID-19 pandemic and the subsequent CBDT circulars that allowed for the condonation of delays in filing such forms. The Tribunal referenced a similar case, Kedar Nath Saraf Charity Trust, where a delay was also condoned under comparable circumstances.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 28897 (ITAT-GUWAHATI)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 12-09-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 20-03-2023
• Other Referred Cases: Kedar Nath Saraf Charity Trust vs. DCIT, Bangarh Educational Welfare Trust vs. ITO (Exemptions)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAUSIK RAY
• Assessee Lawyers: VIDHI LADIA; PLACING ANY BINDING PRECEDENCE
• Keywords: Condonation of delay; Charitable institution; Benefit of exemption
• Section: 250; 11; 12AA; 139(1); 10B

Judgement Text

" आयकर अपीलीय अधिकरण न्यायपीठ, गुवाहाटी । IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH, GUWAHATI BEFORE DR. MANISH BORAD, ACCOUNTANT MEMBER & SHRI MANOMOHAN DAS, JUDICIAL MEMBER I.T.A. No. 23/GTY/2023 Assessment Year: 2021-22 Jubayer Masud Educational And Charitable Trust Santoshpur, Bongaigaon Bongaigaon-783384 Assam Vs ITO Ward 2(3), Exemp, Guwahati-781005, Assam अपीलार्थी/ (Appellant) प्रत् यर्थी/ (Respondent) Assessee by : Ms. Vidhi Ladia, AR Revenue by : Shri Kausik Ray, DR सुनवाई की तारीख/Date of Hearing : 12.09.2024 घोषणा की तारीख /Date of Pronouncement : 17.10.2024 आदेश/O R D E R PER DR. MANISH BORAD, ACCOUNTANT MEMBER: The captioned appeal filed by the assessee, pertaining to assessment year 2021-22 is directed against the order passed by the National Faceless Appeal Centre, Delhi (hereinafter referred to as the ‘ld. CIT(A)’) dated 8th January, 2023 passed u/s 250 of the Income Tax Act, 1961 (‘Act’). 2. The sole grievance of the assessee in this appeal is against the denial of benefit of exemption claimed u/s 11 of the Act solely on the ground of filing audit report in form no. 10B belatedly. 3. At the outset, ld. Counsel for the assessee referred to CBDT circular no.2 of 2020, dated 3rd January, 2020, authorizing the Commissioners to admit the application for condonation of delay in filing form no.10B for A.Y. 2018-19 and subsequent assessment Page | 2 ITA No. 23/GTY/2023 Jubayer Masud Educational And Charitable Trust; A.Y. 2021-22 years, where there is a delay upto 365 days. Subsequently, CBDT vide Circular no.16 of 2022, dated 19th July, 2022, stated that the delay in filing form No.10B beyond 365 days and upto 3 years, were also directed to be considered for admitting the application for condonation of delay. Reliance also placed on the decision of co- ordinate Bench of Kolkata, in the case of Kedar Nath Saraf Charity Trust, KOLKATA, Vs. DCIT ITA No. 133/KOL/2024, dated 8th April, 2024. On the strength of the CBDT circular referred (supra), and the decision of this Tribunal referred (supra), the ld. Counsel for the assessee submitted that there was a delay of 12 days in filing the appeal and the same deserves to be condoned, form no.10B should be accepted and exemption u/s 11 of the Act should be allowed. 4. On the other hand, ld. DR though supported the order of the ld. lower authorities failed to controvert the contention made by the ld. Counsel for the assessee by placing any binding precedence in its favour. 5. We have heard the rival contentions and perused the materials available on record. We have carefully gone through the CBDT circular referred (supra) as well as the decision of the co- ordinate Bench in case of Kedar Nath Saraf Charity Trust (supra). The benefit of exemption u/s 11 of the Act has been denied to the assessee’s trust solely on the ground of delay of 12 days in filing the audit report in form 10B. We observe that for the year under appeal i.e. A.Y. 2021-22, the due date for filing the audit report was 15th February, 2022, but the same was uploaded on the income tax portal on 27th February, 2022. So there is delay of only 12 days. The CPC on the basis of its observation that there is a delay in filing of audit report denied the benefit of Section 11 of the Act. Page | 3 ITA No. 23/GTY/2023 Jubayer Masud Educational And Charitable Trust; A.Y. 2021-22 6. We note that under similar facts and circumstances, this Tribunal in the case of Kedar Nath Saraf Charity Trust (supra) on considering the circular 2 of 2020, dated 3rd January, 2020 and circular no.16 of 2022 dated 19th July, 2022, has held as under:- “4. We have heard rival contentions and perused the record placed before us. We observe that the assessee is a public charitable trust registered u/s 12AA of the Act and subsequently was granted fresh registration u/s 12AB of the Act from Assessment Year 2022-23 to Assessment Year 2026-27. Carrying out of the charitable activities as per the objects of the Trust are not in dispute. The assessee’s claim of exemption u/s 11 of the Act in the Income-tax return for Assessment Year 2020-21 was declined solely on account of delay in furnishing of audit report in Form 10B. Admittedly, there is a delay of 28 days in obtaining and uploading Form 10B in terms of the amended requirements as per which the audit report has to be filed one month prior to the due date of furnishing of the income-tax return. The due date for filing of return by the 15/02/2022 and the assessee filed it within time limit on 14/02/2021. The audit report which was required to be uploaded up to 15/09/2021 was finally uploaded on 13/03/2021. 4.1. It is an admitted fact that from March, 2020 to March, 2022, country was passing through Covid Pandemic and there were various restriction on the movements of the citizens and carrying out of the normal official works was hindered. It is also an accepted fact that many changes have been brought into the Act regarding procedure of filing of income-tax return as well as audit reports and certain technical glitches have been faced time and again. Also on account of change of the utility of furnishing the reports, the forms and change in the due dates have given rise to delay in furnishing of details and documents with the revenue authorities. Considering these aspects, CBDT firstly came up with a Notification dt. 03/01/2020 authorising the Commissioners to admit applications of condonation of delay in filing Form No. 10B for Assessment Year 2018-19 and subsequent Assessment Years, where there is a delay of up to 365 days. Subsequently on 19/07/2022 i.e., after the end of the Covid Pandemic restrictions again a Circular 16/2022 was issued where the delays in filing of Form 10B beyond 365 days but upto three years were also directed to be considered for admitting the application for condonation of delay. This Circular in itself shows that the Income-tax Department was aware about the technical glitches and the problems faced by the tax-payers in furnishing various types of Forms including Form No. 10B is with regard to the furnishing of audit report in case of Trusts and Societies. In the instant case since, delay is merely 28 days, we find that the said delay deserves to be ignored in larger interest of justice. The assessee is thus entitled to claim exemption u/s 11 of the Act made in the Income-tax return e-filed by it. We further fund support from the decisions of this Tribunal in the case of Bangarh Educational Welfare Trust vs. ITO (Exemptions) in ITA No. 496/Kol/2021; Assessment Year 2018-19, order dt. 02/01/2022, wherein also similar issue was raised for Assessment Year 2018-19 and the return was filed within time limit prescribed u/s 139(1) of the Act but there was a delay in furnishing of the audit report on Form 10B and this Tribunal after considering the facts of the case as well as judicial precedents allowed the benefit of Section 11 & 12 of the Act to the assessee. 5. In view of the discussion (supra) and consistent with the view taken by this Tribunal in the case Bangarh Educational Welfare Trust vs. ITO (Exemptions), we allow the benefit of Section 11 of the Act to the assessee as claimed in the income tax return. Accordingly, the effective grounds raised by the assessee are allowed. 6. In the result, appeal of the assessee is allowed.” Page | 4 ITA No. 23/GTY/2023 Jubayer Masud Educational And Charitable Trust; A.Y. 2021-22 7. After duly considering the facts of the instant case in light of the above decision, we find that the same is squarely applicable, therefore, delay in filing the form no.10B is hereby condoned, in the light of CBDT circular referred (supra) and the ld. AO is directed to allow the benefit of Section 11 of the Act claimed in the income tax return in accordance with the law if assessee is otherwise found eligible. Effective grounds of appeal raised by the assessee are allowed. 8. In the result, the appeal of the assessee is allowed. Order pronounced in the Court on 17th October, 2024 at Kolkata. Sd/- Sd/- (MANOMOHAN DAS) (DR. MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Kolkata, Dated 17.10.2024 *SS, Sr.Ps आदेश की प्रतततिति अग्रेतषत/Copy of the Order forwarded to : 1. अिीिार्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. संबंतित आयकर आयुक्त / Concerned Pr. CIT 4. आयकर आयुक्त ( अिीि ) / The CIT(A)- 5. तवभागीय प्रतततनति , अतिकरण अिीिीय आयकर , कोिकाता/DR,ITAT, Kolkata, 6. गार्ड फाईि / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अिीिीय अतिकरण ITAT, Kolkata "