The Income Tax Appellate Tribunal (ITAT), Ahmedabad bench has up held the denial of exemption claimed under sections 11 and 12 since failure to file Form No.10B electronically.
The appellant, Shri Ambica Sarvajnik Trust Anklav is a public charitable trust. During scrutiny assessment, the CPC denied deduction claimed under sections 11 and 12 alleging that Form No.10B was not filed electronically and demanded a tax of Rs.7,73,720/-. The CIT (A) dismissed the appeal. The aggrieved appellant filed an appeal before the ITAT.
The counsel for the appellant submitted that the benefit of exemption under section 12AA i.e., the benefit of exemption under sections 11 and 12 shall be available to the assessee in respect of income derived from property held under the Trust for earlier assessment years and no change in either object or the activities for the assessment year 2016-17 as compared to the assessment year 2018-19.
The counsel for the revenue submitted that Form No. 10B was filed manually during the appellate proceedings and no evidence of filing the same electronically has been adduced by the appellant.
The Coram of Mr. Waseem Ahmed, Accountant Member, and Mr. T.R. Senthil Kumar, Judicial Member has observed that the assessee is free to file the Form 10B online and/or approach the CIT(Exemption), after filing Form 10B electronically and to condone the delay in accordance with the delegated powers vested u/s. 119(2)(b) of the Act. Such a power u/s. 119(2)(b) is not vested with CIT(A). The assessee has not produced any details of filing Form 10B electronically with delay condonation petition. Thus the Tribunal has held that “we do not find any infirmity in the order passed by the CIT(A) and therefore we have no hesitation in confirming the order passed by the CIT(A)”.
Mr. B.T. Thakkar appeared on behalf of the appellant and Mr. Ravindra appeared on behalf of the respondent.
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