Indian Association of Parlimentarians on Population & Development Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi heard an appeal filed against the order dated 12.06.2025 passed by the National Faceless Appeal Centre/Commissioner of Income Tax (Appeals), New Delhi, which arose from an assessment order dated 22.06.2020 passed under Section 154 of the Income Tax Act, 1961 for Assessment Year 2017–18.
The dispute concerned the denial of the assessee’s claim of exemption by the Centralised Processing Centre (CPC) while processing the return under Section 143(1) of the Act. The assessee, a registered trust, had filed its return of income on 18.10.2017 declaring NIL income and claiming exemption under Section 11. However, while processing the return on 20.03.2020, the CPC denied the exemption of ₹1,21,56,852 claimed by the assessee.
The denial was based on the ground that the assessee had not filed Form 10B. The assessee subsequently filed a rectification application, which was rejected. On appeal, the Commissioner of Income Tax (Appeals) upheld the CPC’s decision, stating that filing Form 10B was mandatory and that the exemption claim could not be allowed due to non-filing of the form.
Before the Tribunal, the assessee argued that it was a registered trust covered under Section 10(23C)(iv) of the Act and therefore required to file Form 10BB instead of Form 10B. The assessee submitted that Form 10BB had already been filed on 30.05.2017 and there was no requirement to submit Form 10B. It was also contended that CPC, while processing returns under Section 143(1), cannot make adjustments on debatable issues except for apparent arithmetical errors. In support of this contention, reliance was placed on the Supreme Court decision in Rajesh Jhaveri Stock Brokers 291 ITR 500 (SC).
