Bhakt Samaj Vikas Education Trust Vs ACIT (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT) Ahmedabad has ruled in favor of Bhakt Samaj Vikas Education Trust, allowing its claim for exemption under Section 11 of the Income Tax Act, 1961, despite a delay in filing Form 10B (Audit Report). The decision, pronounced on June 25, 2025, sets aside the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2021-22, which had upheld the disallowance made by the Central Processing Centre (CPC), Bengaluru.
Background of the Dispute
Bhakt Samaj Vikas Education Trust, a charitable organization registered under Section 12A of the Act, filed its return of income for AY 2021-22 on March 29, 2024. The CPC processed this return under Section 143(1) of the Act, disallowing the trust’s exemption claim of ₹2,84,31,074/-. The CPC’s primary reason for this disallowance was the non-filing of the Audit Report in Form 10B before the due date for furnishing the return of income under Section 139(1).
The trust appealed to the CIT(A), but its appeal was dismissed due to alleged “non-prosecution.” The CIT(A) noted that despite issuing several hearing notices, no one appeared on behalf of the assessee to present its case or provide supporting documentation. Citing Supreme Court and High Court precedents emphasizing effective pursuit of appeals, the CIT(A) concluded that the appellant was no longer interested in pursuing the matter and dismissed the appeal.
