OORISSA EVANGELIST TRUST ASSOCIATION,CUTTACK V. INCOME TAX OFFICER, EXEMPTION WARD, CUTTACK

ITA 199/CTK/2025

AI Insights

The case involves the Orissa Evangelistic Trust Association appealing against the order of the Commissioner of Income-tax (Appeals), which denied them exemption under sections 11 and 12 of the Income Tax Act for the assessment year 2023-24. The Trust had filed its return and the audited report in Form 10B after the due date but before the processing of the return. The Tribunal considered the similar case of Salt Lake Sanskritik Sansad vs. DCIT and the decision of the Gujarat High Court in Sarvodaya Charitable Trust vs. ITO (Exemption), which supported the Trust's position that a delay in filing Form 10B should not result in the denial of tax exemptions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708272 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2023-2024
• Other Referred Cases: Salt Lake Sanskritik Sansad Vs. DCIT, Sarvodaya Charitable Trust -vs.- ITO (Exemption), CIT-vs.- Rai Bahadur Bissesswarlal Motilal Malwasie Trust
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NISHANTH RAO B
• Assessee Lawyers: S K SARANGI
• Keywords: Set aside; Charitable institution; Benefit of exemption
• Section: 11; 12A; 12; 119(2)(b); 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “CUTTACK” BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JM AND SHRI RAJESH KUMAR, AM ITA No. 199/CTK/2025 (Assessment Year: 2023-24) Orissa Evangelistic Trust Association, AT-Kesharpur, Buxi Bazar, Cuttack-753001 Vs. ITO, Exemption Ward, Cuttack Aaykar Bhavan, Shelter Chhak Tulsipur, Cuttack, Odisha-753008 (Appellant) (Respondent) PAN No. AAATO0708P Assessee by : Shri SK Sarangi, AR Revenue by : Shri Nishanth Rao B, DR Date of hearing: 16.07.2025 Date of pronouncement: 16.07.2025 O R D E R PER PENCH: This is an appeal filed by the assessee against the order of the ld. Commissioner of Income-tax (Appeals) [in short, the ld. CIT (A)] in appeal no. ITBA/APL/S/250/2024-25/1074154311(1) dated 07.03.2025 for A.Y. 2023-24. 02. Shri SK Sarangi represented on behalf of the assessee and Shri Nishanth Rao P represented on behalf of the Revenue. 03. It was submitted by the ld. AR that the assessee had filed its return income on 28.11.2023, which was extended period provided for filing the return. It was the submission that the due date of filing form no.10B was 31.10.2023, being one month prior to the due date for filing of return. It was the submission that the assessee filed the audited report under form 10B along with return. It was the submission that the intimation to exemption provided u/s 11 and 12 had been denied. It Page | 2 ITA No. 199/CTK/2025 Orissa Evangelistic Trust Association; A.Y. 2023-24 was the submission that the issue is squarely covered by the decision of this bench in case of Salt Lake Sanskritik Sansad Vs. DCIT in ITA No. 40/KOL/2025 dated 30.05.2025, wherein the co-ordinate bench of this Tribunal as in Para no.5 to 8 held as follows: - “5. I have heard both the sides. It was the submission of the ld. Counsel for the assessee that the tax audit report was filed much prior to the date of passing of the order. He also relied on the decision of the Hon'ble High Court of Gujrat in the case of Sarvodaya Charitable Trust -vs.- ITO (Exemption) reported in (2021) 125 taxmann.com 75, wherein it was held that \"benefit of exemption should not be denied merely on account of delay in filing of the audit report\". He, therefore, pleaded to set aside the orders passed by the lower authorities. 6. On the other hand, Id. Departmental Representative submits that the assessee ought to have filed the condonation petition before the revenue authorities under section 119(2)(b) of the Act as directed by the CBDT vide Circular No 16/2024 dated 18.11.2024. The assessee has a remedy to approach the authorities under section 119(2) of the Act to condone the delay in filing Form 10BB, but the assessee failed to do so. Therefore, the Id. Commissioner (Appeals) has rightly dismissed the appeal filed by the assessee. Therefore, he pleaded to uphold the orders passed by the revenue authorities. 7. I have perused the material available on record as well as the written submission filed by the assessee. It is an undisputed fact that the assessee-Trust was registered under section 12A of the Act and the registration is still in existence. It is also an admitted fact that the accounts of the assessee-Trust have audited by a Chartered Accountant and the audit report in Form 10B was obtained by the assessee. However, the only lacunae in the present case is that Form 10B was not filed one month prior to the date of filing of the return of income for the relevant assessment year. It is also an admitted fact that at the time of filing of the return of income, the audit report under Form 10B was uploaded along with the return of income. It is also an admitted fact that at the time of processing the return of income under section 143(1) of the Act, the audit report by way of Form 10 was very much available before the CPC/AO. The Id. Counsel for the assessee has heavily relied on the decisions of the Hon'ble Gujarat High Court in the case Sarvodaya Charitable Trust -vs. ITO (Exemption) reported in (2021) 125 taxmann.com 75 and Hon'ble Jurisdictional High Court in the case of CIT-vs.- Rai Bahadur Bissesswarlal Motilal Malwasie Trust reported in (1992) 195 ITR 825, wherein it was categorically held that filing of Form 10B before one month from the due date of filing of the return of income is not mandatory requirement for the purpose of claiming exemption under sections 11 & 12 of the Act and even if filed at later stage, the assessee is entitled to claim exemption under sections 11 & 12. The facts of the present case on hand are similar to facts of the above cited case laws, therefore, I am of the view that the assessee-Trust is entitled to claim exemption under section 11 of the Act. Therefore, I direct the CPC/Assessing Officer to delete the adjustment made by the CPC. Hence, the grounds raised by the assessee are allowed. Page | 3 ITA No. 199/CTK/2025 Orissa Evangelistic Trust Association; A.Y. 2023-24 8. In the result, the appeal of the assessee is allowed.” 04. In reply, the ld. Sr DR submitted that it was compulsory for the assessee to file the audit report within the time prescribed under the Act. It was the submission that the exemption has been rightly been denied by the ld. lower authorities. 05. We have considered the rival submissions. As it is noticed in the decision of the co-ordinate bench of this Tribunal, which is followed the decision of Hon'ble Gujarat High Courtin case of Sarvodaya Charitable Trust -vs. ITO (Exemption) reported in (2021) 125 taxmann.com 75 (Guj), respectfully following the decision of the co-ordinate bench of this Tribunal and the decision of the Hon'ble Gujarat High Court (supra), the intimation issued u/s 143(1) of the Act stands quash. 06. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 16.07.2025. Sd/- Sd/- (RAJESH KUMAR) (GEORGE MATHAN) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Kolkata, Dated:16.07.2025 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, Cuttack "