MATRUBHUMI EDUCATION TRUST,CHIKHLI NAVSARI V. ITO, EXEMPTION WARD, SURAT

ITA 351/SRT/2025

AI Insights

The case involves Matrubhumi Education Trust, which appealed against the order of the Learned Addl./Joint Commissioner of Income-tax (Appeals) for the assessment year 2022-23. The primary issue was the denial of exemption under section 11 of the Income-tax Act, 1961, due to the late filing of the audit report in Form No. 10B. The Trust filed the report after the due date, which led to the withdrawal of the exemption. The CIT(A) noted that the Assessing Officer lacked the power to condone the delay, a power reserved for the Jurisdictional Commissioner of Income-tax (Exemptions). The Trust argued that the delay was unintentional, caused by the medical treatment of a trustee. The ITAT decided to set aside the CIT(A)'s order and remand the case for a decision on the merits after the delay in filing the audit report is condoned.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 782838 (ITAT-SURAT)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2022-2023
• Appeal Filed On: 22-03-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AJAY UKE
• Assessee Lawyers: SANJAY S. KOTIAN
• Keywords: Set aside; Benefit of exemption
• Section: 11; 12A; 10B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH “DB” SURAT BEFORE SHRI SANDEEP GOSAIN (JUDICIAL MEMBER) AND SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) ITA No. 351/SRT/2025 Assessment Year: 2022-2023 Matrubhumi Education Trust, AT&PO Hukeri Via Rankuwa, Tal Chikhli, Navsari-396560. Vs. Addl/JCIT(A) Bhubaneshwar, Odisha-751007. PAN NO. AAETM 4713 A Appellant Respondent Assessee by : Ms. Sanjay S. Kotian, AR Revenue by : Mr. Ajay Uke, Sr. DR Date of Hearing : 07/10/2025 Date of pronouncement : 30/10/2025 ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is preferred against order dated 22.01.2025 passed by the Ld. Addl./Joint Commissioner of Income-tax (Appeals) [hereinafter shall be referred as ‘the Ld. CIT(A)’] for assessment year 2022-23. 2. We have heard rival submission of the parties and perused the relevant material on record. In the instant case, the Assessing Officer has denied exemption u/s 11 of the Income-tax Act, 1961 (in short ‘the Act’) provided to the Trust, due to delay in filing of audit report in Form No. 10B. Under the provisions of the Act, the assessee was required to file Form No. 10B at least one Printed from counselvise.com month before the due date prescribed for filing return of income u/s 139(1) of the Act. The due for the concerned year was e therefore, the audit report should have been filed by the assessee on or before 07.10.2022 the Act. However, the appellant has filed the report on 20.10.2022 which has resulted into withd exemption u/s 11 of the Act. We find that the Ld. CIT(A) has noted that the Assessing Officer was not empowered to condone the delay and said power Commissioner of Income Income Tax (Exemptions) submitted that delay in filing the audit report was not intentional and due to the reason 2022 assessee trustee was undergoing for medical treatment hence unable to comply the audit detail in due time. above facts and circumstances, we restore this appeal back to the file of the Ld. CIT(A) with the direction to the assessee to file necessary applicatio condonation of the delay and once delay in filing condoned, the assessee may inform the Ld. CIT(A) for deciding the matter on merit. Accordingly, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Ld. CIT(A). ITA No. 351/SRT/2025 Matru Bhumi Education Trust before the due date prescribed for filing return of income u/s 139(1) of the Act. The due date for filing the return of income for the concerned year was extended up to 07.11.2022 and therefore, the audit report should have been filed by the assessee on or before 07.10.2022 as per the provisions of section 12A of the Act. However, the appellant has filed the report on which has resulted into withdrawal of the benefit of exemption u/s 11 of the Act. We find that the Ld. CIT(A) has noted that the Assessing Officer was not empowered to condone the delay and said power vests with the Jurisdictional Commissioner of Income-tax (Exemptions)/ Pr. Commissio Income Tax (Exemptions). The Ld. Counsel for the assessee submitted that delay in filing the audit report was not intentional and due to the reasons that during the month of September, 2022 assessee trustee was undergoing for medical treatment unable to comply the audit detail in due time. above facts and circumstances, we restore this appeal back to the file of the Ld. CIT(A) with the direction to the assessee to file necessary application before the Ld. CIT(E) or PCIT(E) ation of the delay and once delay in filing the assessee may inform the Ld. CIT(A) for deciding the matter on merit. Accordingly, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Ld. CIT(A). ITA No. 351/SRT/2025 2 Matru Bhumi Education Trust before the due date prescribed for filing return of income for filing the return of income xtended up to 07.11.2022 and therefore, the audit report should have been filed by the assessee as per the provisions of section 12A of the Act. However, the appellant has filed the report on rawal of the benefit of exemption u/s 11 of the Act. We find that the Ld. CIT(A) has noted that the Assessing Officer was not empowered to condone with the Jurisdictional (Exemptions)/ Pr. Commissioner of . The Ld. Counsel for the assessee submitted that delay in filing the audit report was not intentional that during the month of September, 2022 assessee trustee was undergoing for medical treatment unable to comply the audit detail in due time. In view of above facts and circumstances, we restore this appeal back to the file of the Ld. CIT(A) with the direction to the assessee to file n before the Ld. CIT(E) or PCIT(E) for ation of the delay and once delay in filing Form 10B is the assessee may inform the Ld. CIT(A) for deciding the matter on merit. Accordingly, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Ld. CIT(A). Printed from counselvise.com 3. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced by way display o board on 30/10/2025 under Rule 34(4) of ITAT Rules, 1963. Sd/- (SANDEEP GOSAIN JUDICIAL MEMBER Mumbai; Dated: 30/10/2025 Rahul Sharma, Sr. P.S. (on Tour) Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Surat 5. Guard file. //True Copy// ITA No. 351/SRT/2025 Matru Bhumi Education Trust In the result, the appeal of the assessee is allowed for Order pronounced by way display of result on notice /10/2025 under Rule 34(4) of ITAT Rules, 1963. Sd/ (SANDEEP GOSAIN) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Surat ITA No. 351/SRT/2025 3 Matru Bhumi Education Trust In the result, the appeal of the assessee is allowed for f result on notice /10/2025 under Rule 34(4) of ITAT Rules, 1963. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, Registrar) ITAT, Surat Printed from counselvise.com "