Tarun Shiksha Avam Jan Seva Samiti Vs ITO (ITAT Jaipur)
Background of the Case
The assessee, a trust, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Jaipur, challenging the order of the Commissioner of Income Tax (Appeals) dated 13.02.2025. The appeal was filed with a delay of 84 days. The Secretary of the trust explained through an affidavit that the delay occurred because his father was undergoing cancer treatment, requiring frequent travel between Tonk and Jaipur, which prevented timely compliance. The Tribunal accepted the explanation as sufficient cause and condoned the delay.
Issue Before the Tribunal
The primary dispute concerned the denial of exemption under Section 11 of the Income Tax Act, 1961. The exemption was denied while processing the return under Section 143(1) solely because Form 10B, the prescribed audit report, was allegedly filed late. Consequently, the entire gross receipts of ₹31,33,867 were taxed, and interest under Sections 234A, 234B, 234C, and 234F was also charged.
Assessee’s Contentions
The assessee argued that Form 10B had been filed on 07.10.2022, whereas the return for Assessment Year 2021-22 was processed under Section 143(1) only on 25.10.2022. Therefore, the audit report was already available on record when the return was processed.
