Sadhubella Education Society Vs ITO (ITAT Mumbai)
Summary: The appeal was filed by Sadhubella Education Society against the order dated 25.11.2025 passed by the National Faceless Appeal Centre (NFAC)/Commissioner of Income Tax (Appeals) under section 250 of the Income-tax Act, 1961 for Assessment Year 2020-21. The Assessee had claimed exemption under sections 11 and 12 by filing its original return on 15.02.2021 declaring nil income and a revised return on 31.05.2021, also declaring nil income. The return was processed under section 143(1) on 24.12.2021, determining total income at Rs. 6,11,36,748/- and taxing it in the status of an Association of Persons. The principal reason stated for denial of exemption was that Form No. 10B, the audit report prescribed under section 12A(1)(b), was allegedly not furnished within the prescribed time.
The Assessee filed its first appeal before the Commissioner on 29.04.2025 with a delay of 1,184 days and also filed an application for condonation supported by an affidavit. The reasons stated included resignation of the old auditors and appointment of a new auditor, difficulties faced by senior citizen trustees in dealing with faceless proceedings and electronic compliance requirements, disruptions caused by the COVID-19 pandemic and lockdowns from March 2020 to March 2022, and bona fide pursuit of alternate remedies, including an application under section 154 which was ultimately rejected. The Commissioner rejected the condonation application, holding that the explanation for the delay was neither continuous nor convincing enough to constitute sufficient cause under section 249(3).
