MUSLIM EDUCATION INSTITUTE TRUST,NAMLABAL V. INCOME TAX OFFICER AWRD- ( EXEMPTIONS), JAMMU

ITA 473/ASR/2024

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The case involves the Muslim Education Institute Trust Pampore, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was related to the denial of deduction applicable to the assessee-trust for the Assessment Year 2017-18, due to the late filing of Audit Report in Form 10B. The Central Processing Centre (CPC) initially denied the deduction as the Audit Report was filed beyond the due date under section 139(1) of the Income Tax Act. However, the CIT(Exemptions) later allowed a condonation of delay in filing the form, which led to the current appeal to the Tribunal to challenge the CPC's decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716574 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 17-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K. MEHBOOB ALI KHAN LD
• Assessee Lawyers: G.Q. WANI LD
• Keywords: Condonation of delay
• Section: 154; 119(2)(b); 10B

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL ‘DB’, AMRITSAR BENCH, AMRITSAR HYBRID HEARING BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI UDAYAN DAS GUPTA, JM आयकर अपील सं. / ITA No. 473/ASR/2024 (िनधाŊरण वषŊ / Assessment Year: 2017-18) Muslim Education Institute Trust Pampore Jammu Kashmir 192121 बनाम/ Vs. ITO (Exemption) Room No 402, Aaykar Bhawan, Rail Head Complex Panama Chowk Jammu and Kashmir-180012. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AADTM-0256-H (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/Appellant by : Sh. G.Q. Wani (CA) –Ld.AR ŮȑथŎकीओरसे/Respondent by : Sh. K. Mehboob Ali Khan (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 06-08-2025 घोषणाकीतारीख /Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 16-07- 2024 in the matter of a rectification intimation issued by CPC u/s 154 on 07-06-2019. It emerges that the assessee filed return of income on 29- 07-2017 which was within time. However, Audit Report in Form 10B was filed on 25-08-2018 which was beyond due date u/s 139(1). Accordingly, CPC denied deduction as applicable to assessee-trust. The action of Printed from counselvise.com 2 CPC has been confirmed by Ld. CIT(A) against which the assessee is in further appeal before us. 2. The Ld. AR stated that the assessee-trust filed condonation petition u/s 119(2)(b) which has been allowed by CIT(Exemptions) vide order dated 13-11-2024 which read as under: - “An application requesting for condonation of delay in filing Form No.10B for the Assessment Year 2017-18 was filed by the applicant. 2. The matter has been examined. Accordingly, after considering the matter, in exercise of powers vested u/s 119(2)(b) of the Income Tax Act, 1961 and Circular No.02/2020 dated 03.01.2020, the undersigned hereby condones the delay in filing Form No.10B for the A.Y.2017-18 in the case of the above mentioned assessee. However, it shall be open for the AO to verify the trustees or the settler have not benefitted by such failure to file Form 10B directly or indirectly.” Accordingly, a prayer has been made to allow the impugned deduction to the assessee. 3. It emerges that the whole basis of denial of deduction by CPC no longer survive. Accordingly, we direct Ld. AO to carry out the necessary verification as directed in the above order and re-compute the income of the assessee with a direction to the assessee to show that the aforesaid condition as stated in the order of Ld. CIT(E) has duly been fulfilled by the assessee. Printed from counselvise.com 3 4. The appeal stands allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18-08-2025. आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AMRITSAR Printed from counselvise.com "