Shiksha Foundation Vs ITO (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has delivered a significant ruling in the appeal filed by Shiksha Foundation, a charitable trust, against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year 2018-19. The Tribunal addressed two key issues: the denial of exemption under Section 11 of the Income Tax Act, 1961, due to a delay in filing the audit report (Form 10B), and the levy of a fee under Section 234F for delayed filing of the income tax return.
In a decision providing relief to the assessee, the ITAT allowed the claim for Section 11 exemption and quashed the Section 234F fee, emphasizing that the audit report was filed before the processing of the return and that the return itself was filed within the prescribed due date.
Background of the Case: Denial of Section 11 Exemption
The case arose when Shiksha Foundation received an intimation under Section 143(1)(a) of the Income Tax Act, which made an adjustment/disallowance for “application of income” amounting to Rs. 32,98,068. The primary reason for this disallowance by the Central Processing Centre (CPC), Bengaluru, was that the audit report for the trust (Form 10B) for the assessment year 2018-19 was not filed on or before the due date for filing the Income-tax return.
