VIJAYDAN SURISWARJI GYANMANDIR & PAUSHADHSHALA,AHMEDABAD V. THE ITO, WARD-1, EXEMPTION, AHMEDABAD

ITA 494/AHD/2025

AI Insights

The case involves Vijaydan Suriswarji Gyanmandir & Paushadhshala, a Public Charitable Trust, appealing against the denial of exemption under Section 11 of the Income Tax Act, 1961, due to the late filing of Form 10B. The Trust argued that the delay was justified due to the Supreme Court's extension of the deadline during the COVID-19 pandemic. The Income Tax Officer had initially denied the exemption, which was upheld by the Commissioner of Income Tax (Appeals). The Tribunal, referencing a judgment by the Jurisdictional High Court, found that the late filing of Form 10B was a procedural issue and not a substantive one, thus not barring the exemption.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314414 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2020-2021
• Other Referred Cases: Association of Indian Panel Board Manufacturers
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Period of limitation; Principle of natural justice; Rectification of order; Charitable institution
• Section: 154; 11; 119(2)(b); 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Vijaydan Suriswarji Gyanmandir & Paushadhshala Nr. Manunayak’s Pole, Kalupur, Ahmedabad-380 001 Gujarat PAN: AAATV1275A (Appellant) Vs Income Tax Officer Ward-1, Exemption, Ahmedabad (Respondent) Assessee Represented: Shri S.N. Divetia, A.R. & Shri Samir Vora, A.R. Revenue Represented: Shri Ravindra, Sr. D.R. Date of hearing : 06-05-2025 Date of pronouncement : 08-05-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the appellate order dated 29.01.2025 passed by the Additional Commissioner of Income Tax-2, Noida arising out of the rectification order passed under section 154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2020-21. ITA No. 494/Ahd/2025 Assessment Year. 2020-21 I.T.A No. 494/Ahd/2025 A.Y. 2020-21 Page No Vijaydan Suriswarji Gyanmandir & Paushdhshala vs. ITO 2 2. The solitary issue involved in this appeal is denying exemption u/s. 11 of the Act for failure to file Form 10B within the prescribed time limit provided under the Act. 3. Brief facts of the case is that the assessee is a Public Charitable Trust constituted on 09-03-1937 and granted registration under the Income Tax Act from time to time. The object of the Trust is promoting philanthropic activities in the fields of education for promoting Gyan Mandir for Public at large. The assessee filed its Return of Income for the Asst. Year 2020-21 on 30-03-2021 as against the extended due date of 15-02-2021. The assessee Trust was required to file Form 10B on or before 15-01-2021 whereas it filed the Form on 30-03-2021. Therefore the CPC while processing the intimation determined the assessed income at 19,47,727/- as against the returned income of Rs. 19,900/-. 4. Aggrieved against the same, the assessee filed rectification petition that was also dismissed on 16-08-2022 against which the assessee filed an appeal before Commissioner (Appeals) which was also dismissed on the ground that Ld. CIT(A) has no power to condone the delay in filing Form 10B. 5. Aggrieved against the appellate order, the assessee is in appeal before us raising the following Grounds of Appeal: 1.1 The order passed by U/s.250 passed on 29.01.2025 by Addl/Jt.CIT(A)-2, Noida [for short CITIA)] upholding the disallowance of exemption u/s 11 aggregating to Rs. 11,41,241/ on account of alleged failure to file Form 108 within the prescribed time is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Id. CIT(A), has grievously erred in law and or on facts in not appreciating that there was no failure to file Form 10B within the prescribed time limit in as I.T.A No. 494/Ahd/2025 A.Y. 2020-21 Page No Vijaydan Suriswarji Gyanmandir & Paushdhshala vs. ITO 3 much as, in view of the order dtd. 27.03.2020 in Suo Motu Writ Petition (Civil) No.3 of 2020, the Hon'ble Supreme Court had initially extended the period of limitation from 15.03.2020 till 14.03.2021. 2.2 That the in the facts and circumstances of the Id. CITIA), ought not to have held that the appellant trust had not filed audit report in Form 10B within the prescribed time so that the condonation u/s 119(2)(b) was to be made to PCIT. 3.1 The Id. CIT(A), has grievously erred in law and or on facts in upholding the disallowance of exemptions u/s 11 aggregating to Rs. 19,47,727/- 3.2 That in the facts and circumstances of the Id. CIT(A), ought not to have upheld the disallowance of exemptions u/s 11 aggregating to Rs.19,47,727/- It is, therefore, prayed that the disallowance of exemptions u/s 11 aggregating to Rs.19,47,727/- upheld by the CIT(A), may kindly be deleted. 6. We have heard the rival submissions and perused the materials available on record. The main reason for denying benefit of Section 11 of the Act was late filing of Form 10B. This issue is no more res integra by the Jurisdictional High Court vide judgment dated 21.3.2023 reported in (2023) 157 taxmann.com 550 (Guj) holding that w.e.f. Astt.Year 2016-17 filing of Form 10B though mandatory in nature but procedural in nature, owing to the amendment made in Finance Act, 2015. In the present case, the ld.counsel for the assessee submitted that Form 10B was filed subsequently, and therefore, the above judgment of the Hon'ble Jurisdictional High Court is squarely applicable. The relevant portion of the judgment of the Hon’ble High Court at para 6.1 is held as under: “….. 6. The moot aspect thus centres around to the requirement of the availability of the audit report when the assessment was undertaken by the Assessing Officer even though the same may not have been filed alongwith (the return of income. Filing of audit report is held to be substantive requirement but not the mode and stage of filing, which is procedural. Once the audit report in Form 12B is filed to be available with the Assessing Officer, before assessment proceedings take place, the requirement of law is satisfied. In that view, the Income Tax Tribunal was not justified in dismissing the appeal of the assessee. I.T.A No. 494/Ahd/2025 A.Y. 2020-21 Page No Vijaydan Suriswarji Gyanmandir & Paushdhshala vs. ITO 4 6.1 The appellant assessee has to be held to be eligible and entitled to exemptions under section 11(1) and 11(2) of the Act and the alleged ground of non-filing of audit report alongwith return of income which was at the best procedural omission, could never to an impediment in law in claiming the exemption.” 5. On the other hand, the ld. DR relied on the orders passed by the lower authorities and requested to sustain the addition. 6. Heard rival submissions and gone through the record and the orders of the Revenue authorities. Keeping in view the judgment of the Hon’ble Jurisdictional High Court in the case of Association of Indian Panel Board Manufacturers (cited supra), and the assessee having satisfied the requirement of the law, we hereby set aside the orders passed by the lower authorities. However, the content of Form 10B was not verified by the lower authorities. The matter is hereby set aside to the file of Jurisdictional Assessing Officer to verify the same and allow the exemption in accordance with law by giving proper opportunity of hearing to the assessee. 7. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 08 -05-2025 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 08/05/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT I.T.A No. 494/Ahd/2025 A.Y. 2020-21 Page No Vijaydan Suriswarji Gyanmandir & Paushdhshala vs. ITO 5 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "