Navbharat Charitable Trust Vs ITO (ITAT Surat)
The appeals before the Income Tax Appellate Tribunal (ITAT), Surat, involved a public charitable trust engaged in imparting education and registered under the Public Trust Act, Mumbai. The trust also held registration under Section 12A and recognition under Section 80G of the Income Tax Act. Three appeals relating to Assessment Years 2017-18, 2018-19, and 2019-20 were heard together as they involved common issues concerning denial of exemption under Sections 11 and 12 of the Act.
For Assessment Year 2017-18, the trust filed its return declaring income of ₹2,41,990 and claimed exemption under Sections 11 and 12 amounting to ₹24,69,286. The Central Processing Centre (CPC), Bengaluru, disallowed the exemption on the ground that the audit report in Form 10B had not been furnished along with the return of income or before filing the return. Similar disallowances were made for Assessment Years 2018-19 and 2019-20.
The assessee appealed before the CIT(A), whose jurisdiction later migrated to the National Faceless Appeal Centre (NFAC). The CIT(A) noted that Form 10B had been filed on 28 May 2021, long after the return had been filed on 17 October 2017. The appellate authority held that the trust had neither produced evidence of filing a condonation application before the Commissioner of Income Tax (Exemptions) nor furnished any order condoning the delay. Relying on the statutory requirements regarding filing of Form 10B and CBDT Circular No. 10/2019, the CIT(A) upheld the disallowance and dismissed the appeals.
