ST. ANTONYS FRIARY,KOLLAM V. ITO, EXEMPTION WARD, KOLLAM

ITA 293/COCH/2025

AI Insights

The case involves St. Antony's Friary, a charitable trust, which appealed against the order of the CIT(A) confirming the CPC's denial of exemption under section 11 of the Income-tax Act, 1961 for the assessment year 2023-2024. The CPC had initially denied the exemption due to the appellant's failure to fill Part B3 of Schedule Part BTI, and the CIT(A) upheld this decision but on the basis that the appellant had filed the wrong form (Form 10B instead of Form 10BB). The Tribunal found that the CIT(A) was not justified in confirming the addition on a different ground than that of the CPC and noted the procedural error in not considering the CBDT's order which condoned the delay in filing the correct form.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 316027 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2023-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL; SENIOR
• Assessee Lawyers: IVAN JOSEPH
• Keywords: Opportunity of being heard; Charitable institution
• Section: 10B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member ITA No.293/Coch/2025 : Asst.Year 2023-2024 St.Antony’s Friary Tillery Kollam – 691 001. PAN : AAATS6510M. v. The Income Tax Officer Exemption Ward Kollam. (Appellant) (Respondent) Appellant by : Sri.Ivan Joseph, CA Respondent by : Smt.Leena Lal, Senior AR Date of Hearing : 05.05.2025 Date of Pronouncement : 14.05.2025 O R D E R This appeal filed by the assessee is directed against the order of the Addl. /Joint Commissioner of Income-tax (Appeals) [hereinafter “the CIT(A)”] dated 19.02.2025 for the assessment year 2023-2024. 2. Briefly, the facts of the case are that the appellant is a charitable trust. The return of income for the assessment year 2023-2024 was filed on 22.11.2023, after claiming exemption u/s.11 of the Income-tax Act, 1961 (hereinafter “the Act”). The appellant also filed Form 10B along with the return of income. The said return of income was processed by the CPC u/s.143(1) of the Act, vide intimation dated 25.11.2024, denying exemption u/s.11 of the Act on the ground that the appellant had failed to fill up Part B3 of Schedule Part BTI. ITA No.293/Coch/2025. St.Antonys Friary. 2 3. Being aggrieved by the above intimation, the appellant preferred an appeal before the CIT(A), who vide the impugned order confirmed the action of the CPC, by holding that the appellant had filed the audit report in Form 10B instead of Form 10BB. 4. Being aggrieved, the appellant is in appeal before the Tribunal, in the present appeal. 5. The learned Senior DR relied upon the orders of the authorities below. 6. I heard the learned Senior DR and perused the material available on record. The only issue that arises for my determination is whether the CPC was justified in making adjustment to the returned income by denying exemption u/s.11 of the Act, for the reason that the appellant had failed to fill up Part B3 of Schedule Part BTI. However, the on appeal before the CIT(A), the CIT(A) confirmed the adjustment by holding that the appellant had filed Form 10B instead of Form 10BB. In my considered view, the CIT(A) is not empowered to confirm the addition for a different reason. The CBDT vide order dated 7th October, 2021, had condoned the delay in filing Form 10BB up to the period of 31st March, 2024. Therefore, the reasoning of the CIT(A) is not valid in law, and also the CIT(A) had failed to examine the reasons assigned by the CPC while processing the return of income. Therefore, the matter is restored to the file of the CIT(A) for denovo disposal of the appeal, after affording an opportunity of being heard to the appellant. ITA No.293/Coch/2025. St.Antonys Friary. 3 7. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 14th day of May, 2025. Sd/- (Inturi Rama Rao) ACCOUNTANT MEMBER Cochin; Dated : 14th May, 2025. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT, Cochin. 4. The DR, ITAT, Cochin. 5. Guard File. Asst.Registrar/ITAT, Cochin Date Initial 1. Draft dictated on 06.05.2025 Sr.PS 2. Draft placed before author Sr.PS 3. Draft proposed & placed before the second member JM/AM 4. Draft discussed/approved by Second Member. JM/AM 5. Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading the order on website 8. If not uploaded, furnish the reason 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the AR 10. Date on which file goes to the Head Clerk. 11. Date of dispatch of Order. 12. Draft dictation sheets are attached Sr.PS "