Vivekanand Shikshan Prasarak Mandal Vs ITO (ITAT Pune)
Belated Form 10B can’t justify taxing gross receipts: ITAT directs normal-rate assessment of surplus
ITAT Pune set aside NFAC/CIT(A) order which had upheld CPC’s action of taxing entire gross receipts by denying exemption u/s 11 due to belated filing of return & Form 10B audit report. Assessee-trust had filed an updated return declaring gross receipts of about ₹1.39 crore, claimed expenses of about ₹1.38 crore & disclosed marginal surplus after claiming exemption u/s 11. CPC denied exemption & taxed whole receipts.
Tribunal noted that assessee’s application for condonation of delay in filing Form 10B was pending before Pr.CIT, yet appellate authority dismissed appeal without considering alternative plea that, even if exemption u/s 11 is denied, only net surplus can be taxed at normal rates after allowing expenditure. Holding that taxing gross receipts violates settled principles & natural justice, ITAT remanded matter to AO with direction to verify expenses & tax surplus, if any, under normal provisions, after granting opportunity of hearing. Appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal filed by the assessee is directed against the order dated 14.07.2025 passed by Ld. Addl./JCIT(A), Thiruvanantpuram [‘Ld. CIT(A)’] for the assessment year 2022-23.
