UTKARSH,NEW DELHI V. INCOME TAX OFFICER, WARD EXEMP-2(3), DELHI

ITA 6835/DEL/2025

AI Insights

The case involves an appeal by Utkarsh against the order of the CIT(A)/National Faceless Appeal Centre, which upheld the disallowance of exemption under section 11 of the Income Tax Act for the assessment year 2018-19. The primary issues were the timing of the submission of Form 10B and the reporting of voluntary contributions. The Tribunal found that Form 10B was available to the Assessing Officer at the time of processing the return, despite being uploaded after the return was filed, and thus the assessee was eligible for the benefits under section 11. Additionally, the Tribunal accepted the assessee's claim of an inadvertent mistake in reporting receipts and directed a verification and correction by the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792314 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 29-10-2025
• Other Referred Cases: Jhaiji Shikshan Samiti Vs DCIT(E), The Bombay St Xaviers College Society Vs CPC, Church of Or Lady of Immaculate Vs ITO (E)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIRENDER KUMAR SINGH
• Assessee Lawyers: VENIL SHAH; THROUGH VC
• Section: 154; 12; 10B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “SMC”, NEW DEALHI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 6835/DEL/2025 (Assessment Year: 2018-19) (Through Hybrid mode) Utkarsh, Unit-303, D-246, Gali No.10, Laxmi Nagar, New Delhi-110092 PAN: AAAAU4839Q Vs Income Tax Officer, Ward-Exemp- 2(3), Room No.427, 24th Floor, Civic Centre, Minto Road, New Delhi-110002 Appellant / Assessee Respondent / Revenue Assessee by Shri Venil Shah, CA (Through VC) Revenue by Shri Virender Kumar Singh, Sr. DR Date of Institution 23.10.2025 Date of hearing 02.12.2025 Date of pronouncement 02.12.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by assessee is directed against the order of learned CIT(A)/National Faceless Appeal Centre, Delhi dated 29.08.2025 for assessment year (AY) 2018- 19. The assessee has raised following grounds of appeal: “1. On facts and circumstances of the casc and in law, Ld. CIT(A) erred in confirming the disallowance of exemption t/s 11 of Rs.4.75,250/-, on ignoring the fact that the tax audit report (Form-IOB) had been filed within the time limit prescribed to file the return of income w/s. 139(4A) of the Act. 2. On facts and circumstances of the case and in law, Ld. CII(A) erred in confirming the Intimation u/s 143(1), on making the adjustments t/s 11(3) of Rs.5,55.150/-, though such receipts pertain to voluntary contribution received and applied during the year 3. The appellant hereby makes a fresh claim to allow the exemption us 11 in respect of voluntary contributions received and applied during the year of R3.5,55.150/-, since the appellant had fulfilled all conditions prescribed u/s 11 and 12 of the Act.” Printed from counselvise.com ITA No. 6835/Mum/2025 Utkarsh 2 2. Rival submissions of both the parties have been heard and record perused. The learned Authorized Representative (AR) of the assessee submits that due date for filing the return of income for Assessment Year (AY) 2018-19 was 30.09.2018, the assessee filed its return of income for on 25.07.2018. However, Form 10B was also uploaded on ITBA portal on 31.07.2018. The. The CPC Bangalore while processing return of income not allowed application of income under section 11 of the Act on the ground that Form 10B was uploaded after filing return of income. The assessee filed application under section 154, which was also dismissed in a mechanical manner by taking view that Form-B is required to be furnished with return of income. The action of the Assessing Officer/CPC was upheld by ld. CIT(A). The ld. AR of the assessee further submits that there are series of decisions of Hon’ble High Courts as well as by the various Benches of the Tribunal, wherein it has been held that when Form 10B was available during assessment, benefit of section 11 be allowed to the assessee. 3. On ground No. 2, the learned AR of the assessee further submits that there was inadvertent mistake while reporting an amount under column 5 of part –E of schedule J, which is normal receipt received from members/ donation which can be verify from books of account, such issue is subject matter of ground no.2. The assessee made a request before Assessing Officer to allow correction of mistake in the mode of investment. The request of the assessee was not accepted by Assessing Officer by holding that the assessee itself has Rs. 555150/- as its income, thus, there was no mistake apparent. The learned AR further submits that the Assessing Officer may be directed to verify the fact and Printed from counselvise.com ITA No. 6835/Mum/2025 Utkarsh 3 allow the relief to the assessee on ground No.2 as well. In support of his submissions the ld AR of the assessee relied on the following case laws;  Jhaiji Shikshan Samiti Vs DCIT(E) 178 taxmann.com 354 (Raipur),  The Bombay St Xavier’s College Society Vs CPC in ITA No. 3584?Mum/2025 dated 25/07/2025,  Church of Or Lady of Immaculate Vs ITO (E ) in ITA No. 4998/Mum/2025. 4. On the other hand, the ld. Senior Departmental Representative for the Revenue supported the orders of the lower authorities. 5. I have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. I have also deliberated upon various case laws relied upon by the learned AR of the assessee. So far as ground no.1 is concerned, I find that admittedly Form 10B was uploaded before due date of filing of return of income, which was 30.09.2018 for relevant assessment year. Though, the assessee filed return of income before uploading Form 10B, thus, Form 10B was available before Assessing Office when return was processed. I also find that various Benches of the Tribunal has taken a consistent view that when report in Form 10B was available before Assessing Officer at the time of process of return of income, the assessee is eligible for benefit of section 11 of Income Tax act. Thus, ground no.1 of the appeal is allowed. 6. So far as the ground no.2 is concerned, I find that due to inadvertent amount under column-5 of part E of Schedule-J, income chargeable under section 11(3), the assessee reported receipt as a normal receipt of the assessee trust from the membership fees/donation. Before learned CIT(A), the assessee raised specific ground of appeal and also made specific submission. The ld CIT(A) rejected the Printed from counselvise.com ITA No. 6835/Mum/2025 Utkarsh 4 submissions of assessee by taking view that section 154 is confined to rectifying a mistake which is apparent. I find that the approach of ld CIT(A) is not correct, when the assessee has specifically requested to allow them to correct inadvertent mistake. Considering the facts that there is inadvertent mistake on the part of assessee in reporting the receipt, hence, the prayer of assessee is accepted and the Assessing Officer is directed to verify the fact and allow the relief to the assessee in accordance with law. 7. In the result, the appeal of the assessee is allowed. Order was pronounced in the open Court on 02nd December, 2025. Sd/- PAWAN SINGH JUDICIAL MEMBER Delhi, Dated: 02.12.2025 f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, New Delhi; and (5) Guard file. By Order Assistant Registrar ITAT, New Delhi Printed from counselvise.com "