KHEMANI CHARITABLE TRUST,KOLKATA V. ITO WARD 1(4),EXEMPTION, KOLKATA

ITA 2099/KOL/2025

AI Insights

The case involves Khemani Charitable Trust appealing against an order by the CPC which denied them the benefit of deduction under section 11 of the Income Tax Act for the assessment year 2024-2025. The denial was based on the late filing of Form 10B, which was submitted on the same day as the income tax return, rather than one month prior to the due date. The Tribunal referenced a decision by the Calcutta High Court, which treated the filing of the auditor's report as a procedural provision and directory in nature, not affecting the substantive rights of the assessee. The Tribunal concluded that the CPC's action of denying the exemption was not a mere adjustment for the purpose of intimation under section 143(1) and thus quashed the intimation.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 828423 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Kolkata
• Assessment Year: misc
• Appeal Filed On: 13-09-2025
• Other Referred Cases: M/s Indian Sugar Mills Association in ITAT/270/2023 IA No:GA/1/2023, GA/2/2023, Gujarat Oil And Allied Industries, reported in 1993 ITR (201) 325
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT ADHIKARY
• Assessee Lawyers: MUKESH PATAWARI
• Keywords: Business income; Charitable institution
• Section: 10B

Judgement Text

" आयकर अपीलीय अधिकरण, “एस.एम.सी” न्यायपीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA श्री जाजज माथन, न्याययक सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अपील सं/ITA No.2099/KOL/2025 (नििाारण वर्ा / Assessment Year :2024-2025) Khemani Charitable Trust, 2 Todi Chambers, Lal Bazar Street, Room No.415, 4th Floor, Kolkata, West Bengal-700001 Vs ITO Ward-1(4), Exemption, Kolkata PAN No. :AAATK5349 J (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Mukesh Patawari, AR राजस्व की ओर से /Revenue by : Shri Abhijit Adhikary, Sr. DR सुनवाई की तारीख / Date of Hearing : 13/01/2026 घोषणा की तारीख/Date of Pronouncement : 13/01/2026 आदेश / O R D E R This is an appeal filed by the assessee against the order dated 18.07.2025, passed by the ld.Addl/JCIT(A), Madurai, for the assessment year 2024-2025. 2. It was submitted by the Ld.AR that for the impugned assessment year the assessee had filed its return of income on 15/11/2024. It was submission that the form 10BB was also filed along with return of income on 15/11/2024. It was the submission that as the form 10B was filed along with return and not one month before the due date of filing of the return, the CPC had issued intimation u/s.143(1) of the Act denying the assessee the benefit of deduction u/s.11 of the Act as claimed. It was the submission that the filing of the form 10B was procedural requirement and would not lead to denial of the exemption u/s.11 of the Act in the intimation u/s.143(1) of the Act. 3. In reply, the Ld. Sr. DR vehemently supported the order of the CPC and Ld. JCIT(A). Printed from counselvise.com ITA No.2099/KOL/2025 2 4. I have considered the rival submissions. A perusal of the facts in the present case clearly shows that the assessee has filed the requisite from though belatedly. Admittedly, the Hon’ble Jurisdictional high Court of Calcutta in the case of M/s Indian Sugar Mills Association in ITAT/270/2023 IA No:GA/1/2023, GA/2/2023, dated 10/01/2024, has categorically brought out that the filing of the auditor’s report along with the return of income has been treated as procedural provision and therefore directory in nature. The Hon’ble jurisdictional High Court has followed the decision of the Hon’ble Gujarat High Court in the case of Gujarat Oil And Allied Industries, reported in 1993 ITR (201) 325. In any case even, assuming that an intimation is to be issued u/s.143(1) of the Act, the denial of an exemption u/s.11 of the Act if it is done, the income of the assessee should be assessed as business income and the income there on to be computed. This has not been done by the CPC. The CPC has blindly denied the assessee the various claim u/s.11 of the Act. This is not an adjustment for the purpose of intimation u/s.143(1) of the Act. This being so, the intimation u/s.143(1) of the Act found to be unsustainable and the same is hereby quashed. 5. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 13/01/2026. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 13/01/2026 Prakash Kumar Mishra, Sr.P.S. Printed from counselvise.com ITA No.2099/KOL/2025 3 आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// Printed from counselvise.com "