Case Law Details
Jagadguru Shivanand Human Welfre Association Gadag Vs ITO (Exemption) (ITAT Bangalore)
The appeal by the Jagadguru Shivanand Human Welfare Association (the assessee) was heard by the Income Tax Appellate Tribunal (ITAT) in Bangalore. The case concerned the denial of Section 11 exemption on the grounds that the assessee failed to file Form 10B within the prescribed time for the Assessment Year (AY) 2022-23. Despite filing the return of income on November 6, 2022, the assessee’s gross receipts of Rs. 50,67,850 were disallowed as exempt due to the delay in submitting Form 10B. The assessee appealed this decision, arguing that the delay was unintentional and had since been rectified by submitting a petition for condonation before the CIT (Exemption).
The ITAT reviewed the appeal and noted that the CIT(A) had upheld the disallowance of the exemption, stating that they lacked the power to condone the delay in filing Form 10B. However, during the hearing, it was brought to the Tribunal’s attention that the assessee had already filed a petition before the CIT (Exemption) requesting to condone the delay. The ITAT decided to remand the case back to the CIT(A), instructing them to consider the appeal based on the outcome of the petition for condoning the delay before the CIT(E). The ITAT ordered that the appeal be considered in accordance with the law after taking the petition into account. As a result, the matter remains open for further adjudication, and the appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals), Prayagraj [CIT(A)] dated 20.08.2024 for Assessment Year (AY) 2022-23.
2. The assessee is a charitable trust and obtained registration u/s. 12 of the Income Tax Act, 1961 (the Act). The assessee filed return of income for AY 2022-23 on 06.11.2022 declaring Nil income. The return was processed u/s. 143(1) of the Act by the CPC in which the entire gross receipts of Rs. 50,67,850/- claimed by the assessee as exempt u/s. 11 of the Act was disallowed. The reason for the denial of benefit u/s. 11 was that the assessee did not file Form 10B within the time limit prescribed. On further appeal the ld. CIT(A) upheld the disallowance stating that the CIT(A) does not have the power to condone the delay in filing From 10B. The assessee is in appeal before the Tribunal against the order of the CIT(A).
3. We have heard the rival contentions and perused the material on record. The benefit of exemption u/s. 11 is denied to the assessee for the reason that the assessee has not filed Form 10B within the time limit prescribed. During the course of hearing it is brought to our attention that the assessee has filed a petition for condoning the delay in filing Form 10B belatedly before the CIT (Exemption). Considering the facts of the present case we deem it fit to remand the appeal back to the CIT(A) with a direction of consider the appeal based on the outcome of the petition filed by the assessee before the CIT(E) for condoning the delay in filing Form 10B and decide in accordance with law. It is ordered accordingly.
4. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 23rd October, 2024.
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