ITO Vs Ramji Mandir Religious And Charitable Trust (ITAT Ahmedabad)
Summary: The Revenue appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, dated 01.03.2023, concerning Assessment Year 2019-20. The dispute concerned the assessee’s claim of exemption under Section 11(2) of the Income-tax Act, 1961 and the effect of filing Form 10/10B in connection with a revised claim.
The assessee originally filed its return of income on 25.09.2019, claiming exemption of Rs. 2.40 lakhs under Section 11(2). It subsequently filed a revised return on 13.03.2020, revising the claim to Rs. 1,73,00,000/-. The Assessing Officer, through an intimation under Section 143(1) dated 26.08.2020, restricted the exemption to Rs. 2.40 lakhs, broadly on the ground that the return and Form 10 had not been filed within the time prescribed under Section 139(1).
The CIT(A) found that the original return had in fact been filed on 25.09.2019, before the extended due date of 31.10.2019 applicable for A.Y. 2019-20, and that the return filed on 13.03.2020 was a revised return under Section 139(5). The CIT(A) also recorded that Form 10B was filed on 13.03.2020. Relying upon various judicial decisions, including CIT vs. Nagpur Hotel Owners Association, the CIT(A) held that the benefit of exemption should not be denied merely because of delay in furnishing the audit report, and directed the Assessing Officer to allow the Section 11 claim after due verification. The CIT(A) dismissed the ground concerning interest under Sections 234A, 234B, 234C and 234D as mandatory and consequential in nature. The appeal before the CIT(A) was accordingly partly allowed.
