ROYAL EDUCATIONAL AMD RESEARCH SOCIETY,BERHAMPUR ODISHA V. ITO EXEMPTION , BERHAMPUR

ITA 316/CTK/2025

AI Insights

The case involves the Royal Educational and Research Society, which appealed against the order of the Addl/JCIT(A)-2, Kolkata, for the assessment year 2017-2018. The primary issue was the denial of exemption under sections 11 and 13 of the Income Tax Act by the Central Processing Centre (CPC), which treated the entire receipts of the assessee as income. The CPC's decision was based on a misunderstanding regarding the filing requirements of Form 10B and 10BB. The Tribunal noted that the assessee had indeed filed Form 10BB along with the return of income on time, and the requirement for filing Form 10B one month prior to the return filing was only applicable from April 1, 2021, due to an amendment by the Finance Act, 2021. Consequently, the Tribunal quashed the intimation issued under section 143(1).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717329 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 23-05-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY SINGH
• Assessee Lawyers: A.K.PADHY
• Keywords: Charitable institution; Benefit of exemption
• Section: 10B

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ुमार, लेखा सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.316/CTK/2025 (नििाारण वर्ा / Assessment Year : 2017-2018) Royal Educational and Research Society, Andhapasara Road, Berhampur-760002 Vs ITO(Exemption), Berhampur/ ADIT(CPC), Bangalore PAN No. : AAATR 7924 G (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri A.K.Padhy, CA राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई की तारीख / Date of Hearing : 11/08/2025 घोषणा की तारीख/Date of Pronouncement : 11/08/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 31.03.2025, passed by ld. Addl/JCIT(A)-2, Kolkata, for the assessment year 2017-2018. 2. It was the submission of the ld. AR that the impugned assessment year is 2017-2018. The CPC had treated the entire receipts of the assessee as income of the assessee and has denied the benefit of exemption u/s.11 & 13 of the Act. It was the submission that the CPC was confused in respect of filing of Form 10B and 10BB of the Act. It was the submission that the assessee is running an educational institution and the assessee has filed Printed from counselvise.com ITA No.316/CTK/2025 2 Form 10BB along with the return of income. It was the submission that the requirement of the filing of Form 10B/10BB, one month before the filing of the return was brought into effect by the Finance Act, 2021 w.e.f. 01.04.2021. It was the submission that for the impugned assessment year the intimation is erroneous and liable to be quashed. 3. In reply, ld. Sr. DR vehemently supported the order of the ld.AO & ld. CIT(A). It was the submission that the issue should be restored to the file of ld. Addl/JCIT(A) for readjudication afresh. 4. We have considered the rival submissions. As it is noticed and admittedly the assessee has not represented before the ld. Addl/JCIT(A) during the course of appellate proceeding, however, it is noticed that the issue in this appeal is very small and it would be unnecessary waste of judicial time by restoring the issue to the file of ld. Addl/JCIT(A) for such matter. Therefore in the interest of justice, the appeal is heard and disposed off in the following manner. 5. A perusal of the intimation issued u/s.143(1) of the Act clearly shows that the CPC has denied the assessee benefit of application for charitable purposes. The assessee is admittedly an educational institution. The assessee has filed his return of income on 14.10.2017 where the due date for filing of the return was 07.11.2017. The assessee has also filed Form 10BB along with the return of income. As the assessee has filed the Form 10BB along with the return of income before due date of filing of return and as the amendment for filing the Form 10B is one month prior to the filing of return was w.e.f. 01.04.2021, we are of the view that the intimation issued Printed from counselvise.com ITA No.316/CTK/2025 3 u/s.143(1) of the Act is not sustainable and consequently we quash the same. 6. In the result, appeal of the assessed is allowed. Order dictated and pronounced in the open court on 11/08/2025. Sd/- (राजेश क ुमार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 11/08/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// Printed from counselvise.com "