VISWAKARMA DHARMEEKA SEVANA SANGHAM,ERNAKULAM V. ITO, EXEMPTION WARD, KOCHI

ITA 836/COCH/2025

AI Insights

The case involves Viswakarma Dharmeeka Sevana Sangham, a charitable trust, which appealed against the order of the Commissioner of Income Tax (Appeals)-4, Mumbai, for the Assessment Year 2016-17. The trust had filed a return claiming exemption under section 11 of the Income Tax Act, 1961, but the AO denied this exemption due to the absence of a signed audit report in Form 10B. The CIT(A) upheld the AO's decision, leading to the current appeal. The Tribunal noted the procedural oversight in not allowing the appellant to rectify the unsigned audit report and thus remanded the case back to the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 790199 (ITAT-COCHIN)
• Duration Of Justice: 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 03-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NEETHU S.
• Assessee Lawyers: K. KRISHNA
• Keywords: Charitable institution
• Section: 143(3); 11; 12AA; 10B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 836/Coch/2025 Assessment Year: 2016-17 Viswakarma Dharmeeka Sevana Sangham .......... Appellant Kottappuram, Alangad P.O., Ernakulam [PAN: AAAAV8106H] vs. The Income Tax Officer(Exemption), Kochi .......... Respondent Assessee by: Shri K. Krishna, Advocate Revenue by: Ms. Neethu S. Sr. DR Date of Hearing: 27.11.2025 Date of Pronouncement: 28.11.2025 O R D E R This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-4, Mumbai [CIT(A)] dated 02.09.2025 for Assessment Year (AY) 2016-17. 2. Brief facts of the case are that the appellant is a charitable trust duly registered u/s. 12AA of the Income Tax Act, 1961 (the Act). The return of income for AY 2016-17 was filed on 20.12.2016 disclosing Nil income after claiming exemption u/s. 11 of the Act. Against the said return of income, the assessment was completed by the Income Tax Officer (Exemption) Kochi vide order dated 07.12.2018 passed u/s. 143(3) of the Act at total income of Rs. Printed from counselvise.com 2 ITA No. 836/Coch/2025 Viswakarma Dharmeeka Sevana Sangham 46,45,404/-. While doing so, the AO had denied exemption u/s. 11 on the ground that the appellant had not filed audit report in Form 10B of the Act along with the return of income. 3. Being aggrieved, an appeal was filed before the CIT(A) contending that Form 10B was filed. However, Form 10B was not signed by the Chartered Accountant inadvertently. However, the CIT(A) had confirmed the action of the AO by holding that the said audit report was not filed within the due date prescribed under Rule 12A(1)(b) of the Act. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. The learned counsel for the assessee reiterated the submissions made before the learned CIT(A). 6. The learned Sr. DR opposed the above submissions and submits that the order passed by the CIT(A) is reasoned one, requires no interference. 7. I heard the rival contentions and perused the material available on record. The issue in the present appeal relates to whether the appellant society was entitled for exemption u/s. 11 of the Act. Undoubtedly, the appellant had filed Form 10B not signed by the Chartered Accountant. However, the material on record does not indicate that the appellant was given opportunity of curing this Printed from counselvise.com 3 ITA No. 836/Coch/2025 Viswakarma Dharmeeka Sevana Sangham defect. Therefore, I am of the considered opinion that the matter requires remand to the file of AO for de novo disposal in accordance with law after affording reasonable opportunity of hearing to the appellant. 8. In the result, the appeal filed by the assessee stands partly allowed for statistical purposes. Order pronounced in the open court on 28th November, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 28th November, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin Printed from counselvise.com "