SHRI PANDURANG SANSTHAN DEULGAON MALI,MEHKAR V. ITO WARD-2, EXEMP, NAGPUR, NAGPUR

ITA 487/NAG/2024

AI Insights

The case involves Shri Pandurang Sansthan Deulgaon Mali, a public charitable trust, which appealed against the order of the ADDL/JCIT (Appeals), Madhurai, concerning the disallowance of exemption under section 11 of the Income Tax Act, 1961 for the Assessment Year 2018-19. The trust had filed its return declaring a total income and claimed exemption under section 11. However, the return was processed with a demand raised due to the non-electronic filing of Form No. 10B. The initial appeal was dismissed, leading to this tribunal appeal. The Tribunal considered similar precedents and allowed the appeal, emphasizing the directory nature of Form No.10B filing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 773169 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 07-09-2024
• Other Referred Cases: CIT (Exemption) vs. Laxmanarayan Dev Shrishan Seva Khendra [2024] 167 taxmann.com 548 (Guj. HC), Sahaj Seva Trust vs. ITO (Exemption) [2025] 174 taxmann.com 784 (Pune Trib.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURJIT KUMAR SAHA; LD.
• Assessee Lawyers: ABHAY AGRAWAL; LD
• Keywords: Condonation of delay; Charitable institution
• Section: 11; 12; 10B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR “SMC” BENCH :: NAGPUR BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA No.487/NAG/2024 (Assessment Year : 2018-19) Shri Pandurang Sansthan Deulgaon Mali at post Deulgaon Mahi, Mehkar-443001 PAN: AAGTS 8497 P Vs. ITO (Exemption), Ward-2, Nagpur. (Appellant) (Respondent) Present for: Assessee by : Shri Abhay Agrawal, Ld. Advocate Revenue by : Shri Surjit Kumar Saha, Ld. Sr.D.R. Date of Hearing : 27.06.2025 Date of Pronouncement : 23.09.2025 O R D E R This appeal has been preferred by the Assessee against the order dated 24/06/2024 impugned herein passed by the ADDL/JCIT (Appeals), Madhurai (in short, ‘Ld. Commissioner’) u/sec. 250 of the Income Tax Act, 1961 (in short, ‘Act’) for the A.Y. 2018-19. Printed from counselvise.com ITA No.487/NAG/2024 (Shri Pandurang Sansthan Deulgaon Mali) 2 2. At the outset, it is observed that there is a delay of 15 days in filing the present appeal. The Assessee has filed sworn affidavit dated 06/09/2024 and mentioned the reasons for causing delay. The reasons for condonation of delay stated by the Assessee, appears to be genuine, bonafide and unintentional, thus the delay is condoned. 3. Coming to the merits of the case, it is observed that in this case, the Assessee being a public charitable trust registered under applicable laws, filed its return of income on dated 31/03/2019 declaring total income of Rs. 32,099/- for the assessment year under consideration before the due date as per section 139(4) of the Act and claimed exemption u/sec. 11 of the Act. Subsequently, the return filed by the Assessee was processed u/sec. 143(1) of the Act on dated 30/12/2020 by the CPC, whereby a demand of Rs. 3,82,168/- has been raised mainly on the ground that Form No. 10B was not filed electronically along with return. 4. The Assessee, being aggrieved, challenged the said disallowance/ addition by filing first appeal before the Ld. Commissioner, however, of no avail, as the Ld. Commissioner dismissed the appeal of the Assessee by holding that the Assessee has already uploaded the digital signed Form 10B on 16/10/2021 Printed from counselvise.com ITA No.487/NAG/2024 (Shri Pandurang Sansthan Deulgaon Mali) 3 and has filed condonation petition before the jurisdictional CIT(Exemption), Pune, whereby application dated 31/05/2021 which is pending for disposal and, therefore, CPC is correct on disallowance exemption u/sec. 11 of the Act, as the return was filed after the due date u/sec. 139(1) of the Act and Form 10B filed is not valid, being unsigned and the appellate authority has no discretionary power, to relax the provision of the statute. 5. The Assessee has claimed that it had obtained audit report in Form 10B from the Chartered Accountant on 22/08/2018 i.e. well before the due date, however, due to bonafide and technical lapses, the said form was e-filed on 16/02/2021 and, thereafter the Assessee also sought for condonation of delay in filing Form 10B before the Ld.CIT(Exemption), Pune dated 31/05/2021, which has subsequently been rejected vide order dated 03/12/2024. The Assessee in support of its claim also relied on various judgments, such as, CIT (Exemption) vs. Laxmanarayan Dev Shrishan Seva Khendra [2024] 167 taxmann.com 548 (Guj. HC); and Sahaj Seva Trust vs. ITO (Exemption) [2025] 174 taxmann.com 784 (Pune Trib.). 6. This Court observes that the Tribunal at Pune in the case of Sahaj Seva Trust (supra) has also dealt with an identical issue, Printed from counselvise.com ITA No.487/NAG/2024 (Shri Pandurang Sansthan Deulgaon Mali) 4 wherein Form 10B was filed belatedly during appellate proceedings and Hon'ble Tribunal allowed the appeal of the Assessee and/or claim lodged u/sec. 11 of the Act, by observing and holding as under:- “1. The captioned appeal at the instance of assessee pertaining to A.Y. 2014-15 is directed against the order dated 17.12.2024 passed by National Faceless Appeal Centre, Delhi arising out of the Assessment order dated 14.01.2021 passed u/s.154 r.w.s.143(1) of the Income-tax Act, 1961 (in short ‘the Act). 2. The only grievance of the assessee is that the benefit of sections 11 and 12 has been denied to the assessee for non-filing of Form No.10B within the prescribed time limit and that ld.CIT(E) has not considered the Form No.10B filed at the later stage on 02.03.2022 which was filed at the appellate proceedings. It was also submitted that filing of Form No.10B is directory in nature and the same should have been considered by ld.CITA) while deciding the issue. 3. Ld. Departmental Representative supported the orders of the lower authorities. 4. We have heard both the sides and perused the record placed before us. We note that assessee holds valid registration u/s.12A of the Act vide letter dated 13.03.2022, but has filed Form No.10B belatedly on 02.03.2022 and ld.CIT(A) who has also the co- terminus powers to that of ld. AO did not accepted the audit report filed on Form No.10B and denied the benefits of sections 11 and 12 to the assessee. 5. We note that the Coordinate bench, Surat in the case of S.M. K.R. Vashi High School Vs. ITO (Exemption) reported in 157 taxmann.com 702 (ITAT, Surat) has held that even if the Form No.10B could not be uploaded due to some technical error on the income-tax portal, benefit of section 11 could not be denied merely on account of delay in furnishing the audit report. Hon’ble High Court in the case of CIT (Exemption) Anjana Foundation reported in 168 taxmann.com 462 (Gujarat) has held that filing of Form No.10B is a procedural requirement and benefit of section 11 should not be denied for delay in furnishing Form No.10B. Hon’ble Court thus affirmed the view taken by the Tribunal in its order dated 07.02.2023 in ITA No.695/Ahd/2023. We therefore following the ratio laid down in the above referred decisions hold that the assessee holding valid registration u/s.12A of the Act has filed Form No.10B belatedly but during the appeal proceedings itself and filing of such report is directory and not mandatory as held by Hon’ble Courts, therefore, benefit of sections 11 and 12 claimed by the Printed from counselvise.com ITA No.487/NAG/2024 (Shri Pandurang Sansthan Deulgaon Mali) 5 assessee in income-tax return deserves to be allowed. Grounds of appeal raised by the assessee are allowed. 6. In the result, appeal of the assessee is allowed.” 7. Respectfully following the decision of the Tribunal in the aforesaid case, this Court is inclined to grant relief to the Assessee. Thus, the AO is directed to verify the claim of the Assessee on merit by considering the Form 10B filed as valid. 8. In the result, Assessee’s appeal is allowed. Order pronounced in open court on 23.09.2025 as per Rule 34(5) of the Income Tax (Appellate Tribunal) Rules, 1963. Sd/- (NARENDER KUMAR CHOUDHRY) JUDICIAL MEMBER vr/- Copy to: The Appellant The Respondent The CIT, Concerned, Nagpur The DR Concerned Bench //True Copy// By Order Senior Private Secretary ITAT, Nagpur. Printed from counselvise.com "