SUBROS EDUCATIONAL SOCIETY,DELHI V. ACIT (EXEMPTION) CIRCLE -2 (1) , , NEW DELHI

ITA 5563/DEL/2025

AI Insights

The case involves M/s. Subros Educational Society, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, dated 14.07.2025, for the Assessment Year 2023-24. The primary contention was regarding the disallowance of exemption claimed under Sections 11 and 12 of the Income Tax Act, which the assessee argued was beyond the jurisdiction of section 143(1). The assessee had filed the necessary audit report in Form 10B and the return of income within the stipulated time, which was contested by the AO. The Tribunal examined the procedural adherence in processing the return and the timing of the submissions of the audit report and the return.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839889 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2023-2024
• Appeal Filed On: 09-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSRA
• Assessee Lawyers: SALIL AGARWAL
• Keywords: Revised return
• Section: 11; 12; 10B

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 5563/Del/2025 (Assessment Year: 2023-24) M/s. Subros Educational Society (Regd), C-71, World Trade Centre, Barakhamba Lane, CP Taj Expressway, Connaught Place, Delhi Vs. ACIT, Circle-2(1), New Delhi (Appellant) (Respondent) PAN: AADTS2161F Assessee by : Shri Salil Agarwal, Sr. Adv Shri Shailesh Gupta, Adv Shri Uma Shankar, Adv Revenue by: Ms. Harpreet Kaur Hansra, Sr. DR Date of Hearing 05/02/2026 Date of pronouncement 05/02/2026 O R D E R PER NAVEEN CHANDRA, A. M.: 1. This appeal of assessee is directed against the order of the ld. National Faceless Appeal Centre (NFAC), Delhi dated 14.07.2025 pertaining to AY 2023-24. 2. At the very outset, the ld counsel of the assessee submitted that the AO, CPC had processed the return u/s 143(1) of the Act and made disallowance which was beyond the scope and Printed from counselvise.com ITA No. 5563/Del/2025 M/s. Subros Educational Society (Regd) Page 2 of 5 jurisdiction of Section 143(1). It is to say by the ld AR that the AO, CPC denied the exemption claimed u/s 11 and 12 was not justified. The ld AR submitted that the ld CIT(A) has wrongly disallowed the claim of the assessee by stating that the assessee had not filed audit report in Form 10B/10BB whereas the assessee had filed the return on 27.11.2023 and had also filed audit report in Form 10B on 31.10.2023. 3. Per contra the ld DR relied on the order of the ld CIT(A). 4. We have heard the rival submissions and have perused the material available on record. We find that the assessee had filed Form 9A on 31.08.2023 wherein, it had exercised the option referred to in Clause (2) of the Explanation to sub-section (1) of Section 11 of the Income Tax Act, 1961. We also find that the assessee filed Form 10B on 31.10.2023. The assessee had filed the return of income on 27.11.2023, the acknowledgement of which is placed at pages 50 to 105 of the Paper Book. The assessee had filed revised Form 10B dated 29.12.2023 for the impugned assessment year and it had filed a revised return of income on 30.12.2023 and thereafter the assessee filed a revised Form 10B dated 29.03.2024 for the impugned AY. Printed from counselvise.com ITA No. 5563/Del/2025 M/s. Subros Educational Society (Regd) Page 3 of 5 5. The AO, CPC while processing the return filed had adopted the date of filing the return dated 30.12.2023. We find that the revenue did not consider the original return filed on 27.11.2023 but processed the revised return dated 30.12.2023 as the original return and denied the benefit claimed u/s 11 and 12. We are also of the considered view that delayed Form 10B is only procedural in nature which in any case was filed before filing of return i.e. 31.10.2023. In the factual matrix of the instant case, we are of the view that ld CIT(A)’s decision to uphold the processing u/s 143(1) is erroneous and unsustainable in law. The AO is directed to consider the Return filed on 27.11.2023 and Form 10B filed on 31.10.2023 and adjudicate the issue of the benefit claimed u/s 11 and 12 afresh. The grounds are allowed for statistical purpose 6. In result, the appeal of the assessee in ITA No. 5563/Del/2025 is allowed for statistical purpose. Order pronounced in the open court on 05/02/2026. -Sd/- -Sd/- (SATBEER SINGH GODARA) (NAVEEN CHANDRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 23/02/2026 A K Keot Copy forwarded to Printed from counselvise.com ITA No. 5563/Del/2025 M/s. Subros Educational Society (Regd) Page 4 of 5 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "