VISHAV SHAKTI MISSION AND RESEARCH FOUNDATION,BAROTA V. INCOME TAX OFFICER, SONIPAT

ITA 321/DEL/2025

AI Insights

The case involves Vishav Shakti Mission & Research Foundation appealing against the order of the CIT(A)-1, Mumbai, which confirmed the CPC's intimation under Section 143(1) of the Income Tax Act, 1961. The CPC had denied the trust's eligibility for exemption under Section 11 due to a delay in uploading the audit report in Form 10B. The Tribunal considered the procedural nature of the requirement and referenced a precedent from the Punjab & Haryana High Court, which supported the trust's position that such a delay should not affect the exemption eligibility. The Tribunal's decision emphasized the importance of substantive justice over procedural technicalities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 295065 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2022-2023
• Other Referred Cases: CIT v. Shahzedanand Charity Trust (1997) 228 ITR 292 (P&H)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 143(1); 11; 10B

Judgement Text

"1 ITA No. 321/Del/2025 Vishav Shakti Mission & Research Foundation IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”: NEW DELHI Ms. MADHUMITA ROY, JUDICIAL MEMBER ITA No. 321/DEL/2025 Assessment Year: 2022-23 Vishav Shakti Mission & Research Foundation, 1st Baba Garib Das Sant Yog Ashram, 278A Barota Gohana, Sonipat-131301 PAN- AAATV 8077 C Vs Income Tax Officer, Sonipat. Assessing Officer, CPC Bengaluru. APPELLANT RESPONDENT Assessee represented by Shri Akshat Sharma, Adv. Department represented by Sh. Sanjay Kumar, Sr. DR Date of hearing 24.04.2025 Date of pronouncement 24.04.2025 O R D E R PER Ms. MADHUMITA ROY, JM: The instant appeal filed by the assessee is directed against the order dated 28.11.2024 passed by the Ld. CIT(A)-1, Mumbai [DIN & Order No. ITBA/APL/S/250/2024-25/1070718634(1)], arising out of the intimation dated 31.03.2023 passed under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the Assessing Officer, CPC, Bengaluru, for Assessment Year 2017-18. 2. Grounds of appeal raised by the assessee in its appeal are as under: 2 ITA No. 321/Del/2025 Vishav Shakti Mission & Research Foundation “1. On the facts and in the circumstances of the ease and in law the Learned Additional Commissioner of Income Tax (Appeals) 1 Mumbai has erred both in law and on the facts of the case confirming the order of CPC under section 143(1) wherein disentitling the appellant Trust be not eligible for Act despite holding a valid registration u/s 12AB of the Act due to non- uploading of the Audit report dated 20.09.2022 in time i.c. on 30.09.2022-. It is prayed expenses may kindly be allowed 2. On the facts and in the circumstances of the case and in law the Learned Additional Commissioner of Income Tax (Appeals) - 1 Mumbai has erred both in law and on the facts of the case confirming the order of CPC under section 143(1) wherein the CPC has disallowed the benefit of expenses incurred by the appellant by holding that the appellant is eligible for deduction u/s. 11 r.w.s.12A (1) (b) of the Act only if audited accounts and Form 10B are to be filed before the due date. Whereas the appellant Trust had filled its Audit report in Form 10 B of Income Tax Act along with ITR on 25.10.2022. Such conditional grant of benefit of section 11 claim is against the true spirit and intent of granting such benefits under the scheme of the Act. Hence it is prayed before your honor that the delay 25 days in filling of Form 10B may kindly be condone. 3. The Appellant craves leave to add, amend or withdraw any or all the above grounds of appeal.” 3. The short point involved for adjudication in this appeal is whether the delay in filing Form No. 10B can be a ground for denying exemption u/s 11 read with section 12A(1)(b) of the Act. 4. Heard the rival submissions made by the respective parties and perused the relevant materials available on record. It is the case of the assessee that audit report in Form 10B though prepared on 20.09.2022 was filed belatedly along with return 3 ITA No. 321/Del/2025 Vishav Shakti Mission & Research Foundation of income on 25.10.2022. This being a procedural mistake, directory in nature and not mandatory cannot be a sufficient cause for disentitling the appellant trust be not eligible for exemption under Section 11 despite holding a valid registration under Section 12AB of the Act and audited Accounts and Form 10B having been filed along with return of income as was also the crux of the submission of the Ld. AR. He further submitted that the issue is squarely covered in favour of the assessee by the decision of the Hon’ble High Court of Punjab & Haryana in the case of CIT v. Shahzedanand Charity Trust (1997) 228 ITR 292 (P&H), clarifying that exemption available to the trust under Section 11 may not be denied merely on account of delay in furnishing the auditor’s report. Learned DR could not deny the aforesaid legal position. 5. Thus, having heard the Ld. Counsels appearing for parties and having regard to these particular facts as narrated above the Bench finds sufficient merit in the appeal preferred by the assessee. The order impugned is found to be not sustainable in view of the submissions made by the Ld. AR considering the provisions of law and the ratio of the judgment cited above. Thus, assessee’s instant sole substantive grievance is accepted in principle. The order impugned is, thus, quashed. The learned CIT(A)/NFAC is directed to re-adjudicate the appeal on 4 ITA No. 321/Del/2025 Vishav Shakti Mission & Research Foundation merits in accordance with law after affording reasonable opportunity of being heard to the assessee. 6. This assessee’s appeal is allowed for statistical purpose in above terms. Order pronounced in open court on 24.04.2025. Sd/- (Ms. MADHUMITA ROY) JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "