The Income Tax Appellate Tribunal ( ITAT ), Bangalore recently issued directions to the Commissioner of Income Taxes ( Appeals ) ( CIT(A) ) to conduct renewed consideration of an Appeal on the basis of possible condonation of delay by the Commissioner of Income Taxes ( Exemptions ) ( CIT(E) ) in a matter concerning delay in filing Form 10B by a Charitable Trust.
The Appeal against the Order of the CIT(A), Prayagraj pertained to Assessment Year (A.Y.) 2022-23, and was filed before the Bangalore ITAT by Sri Jagadguru Shivanand Human Welfare Association, a charitable trust seeking to avail exemptions under Section 11 of the Income Tax Act, 1961.
Appellant-Assessee is a charitable trust registered under Section 12 of the Income Tax Act and had filed their returns of income for A.Y. 2022-23 on 06.11.2022, declaring Nil Income. The Centralised Processing Centre (CPC) processed the Returns under Section 143(1) of the Act, disallowing an amount of Rs.50,67,850/- which had been claimed as exempt by the Assessee under Section 11 of the Act.
The concerned Assessing Officer denied benefit under Section 11 citing the Assessee’s failure to file Form 10B within the prescribed time limit; the same reasoning was echoed by the CIT(A), while stating their lack of power to condone any delay in filing Form 10B.
The two-member Bench of the Income Tax Appellate Tribunal, Bangalore composed by Padmavathy S., Accountant Member and Prakash Chand Yadav, Judicial Member considered the submissions on record and observed that the petition before the CIT(E) seeking condonation of delay in the belated filing of Form 10B is pending resolution.
Owing to the specific circumstances of the case, the Bench remanded the Appeal back to the CIT(A) for renewed adjudication, on the basis of the impending decision of the CIT(E) on the petition for condonation of delay in filing Form 10B.
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