Kaydee Foundation Vs ITO (ITAT Kolkata)
In a recent decision, the Income Tax Appellate Tribunal (ITAT) Kolkata addressed an appeal by Kaydee Foundation against the Commissioner of Income Tax (Appeals)-Addl/JCIT(A)-1, Coimbatore. The dispute centered on the Foundation’s claim of exemption under Section 11 of the Income Tax Act for the assessment year 2022-23.
The foundation, a trust, filed its income tax return under Section 139(4a) along with the auditor’s report in Form No. 10B. However, the Assessing Officer (AO) rejected the exemption claim citing a delay of 24 days in filing the audited report. This decision was upheld by the Commissioner of Income Tax (Appeals), prompting Kaydee Foundation to appeal before the ITAT Kolkata.
During the appeal, Kaydee Foundation argued that the delay in filing Form 10B should not invalidate their claim under Section 11. They contended that the AO had the auditor’s report since March 31, 2023, and could have considered it during earlier proceedings. Additionally, they asserted that the requirement to file Form 10B one month before the due date was procedural, not mandatory.
Conversely, the Departmental Representative supported the AO’s decision, emphasizing compliance with procedural timelines.
The ITAT Kolkata reviewed the case and referenced precedents from the Calcutta High Court and other judicial bodies. They noted that courts have previously considered the filing of Form 10B as a procedural requirement, liable to condonation in certain circumstances where delays were due to inadvertent errors or technical issues.
