Tehmina K. Katrak Charitable Trust Vs ITO (ITAT Mumbai)
Sec 154 Cannot Be Used to Deny Sec 11 Exemption on Form 10B Delay – ITAT Restores Benefit
Assessee trust claimed exemption u/s 11. Return was filed within extended due date (CBDT Circular 1/2022). CPC initially allowed exemption u/s 143(1), but later rectified u/s 154 denying exemption alleging delay in filing Form 10B.
ITAT held:
- Assessee had attempted filing Form 10B within time; delay due to portal technical issues
- CPC had already examined & accepted explanation in 143(1) stage
- Subsequent action u/s 154 amounts to review of earlier decision, not rectification
- Issue involves debatable facts- outside scope of sec 154
- Also, no opportunity of hearing given before rectification
Accordingly:
- Rectification order u/s 154 set aside
- Original 143(1) order allowing exemption restored
FULL TEXT OF THE ORDER OF ITAT MUMBAI
1. The present appeal has been preferred by the Assessee against the Order, dated 11/11/2025, passed by the Additional/Joint Commissioner of Income Tax (Appeals), Mysore [hereinafter referred to as the ‘CIT(A)’], whereby the Learned CIT(A) had dismissed the appeal of the Assessee against the Order, dated 15/03/2022, passed under Section 154 of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’], for the Assessment Year 2021-2022.



