The Pune Income Tax Appellate Tribunal ( ITAT ) denied the claim for exemption of income under section 11 of Income Tax Act on the ground that the Form No.10B was not filed along with the return of income nor before processing of the return of income.
Section 11 of Income Tax Act 1961 income from the property of charitable trust will be exempted from computing tax.
Assessee Gooru India Foundation for Learning Innovation, a company incorporated under the provisions of section 8 of the Companies Act, 2013. The assessee company is a non-profit organization It was formed with the object to aid, promote, guide, encourage, run, assist, invest, support, facilitate, activities in the field of education for students and to carry out research, conduct programmes, create and use technology to bring quality-invariant and affordable education for the students and to create awareness about education with the help of educational content, e-learning tools, experts and community to develop learning solution for meeting local market needs by associating with local partners.
After filing the return the assessee was shown that in the absence of Form No.10B, the benefit of exemption under section 11 of Income Tax Act 1961 could not be allowed. Thereafter assese filed Form No.10B electronically.
Further assessee filed a petition seeking the rectification of the intimation u/s 143(1) and the same was rejected by the CPC. Aggrieved assessee filed an appeal before the National Faceless Appeal Centre. But they held that CPC had no power of condoning the delay in filing the Form No.10B and dismissed the assessee appeal.
Against this order assesee filed an appeal before the ITAT.
Kishor B. Phadke Counsel for the assessee submits that as per the CBDT Circular No.28/2019 the CBDT extended the time for filing of the Form No.10B till 31.03.2020 for the assessment years 2016-17 and 2017-18. Therefore, it is submitted that the CPC ought to have considered the belated filing of Form No.10B.
Ramnath P. Murkunde counsel for the revenue confirmed the decision of the lower authorities.
After considering the contentions of the both parties the division bench of Inturi Rama Rao, (Accountant Member) and S. S. Viswanethra Ravi, (Judicial Member) dismiss the appeal filed by the assessee and observed that “the power of condonation of the delay in filing the Form No.10B had been delegated to the Commissioner of Income Tax and all such applications shall be disposed of by 30.09.2019 and the said date was extended upto 31.03.2020 vide CBDT Circular No.28/2019 dated 27.09.2019”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
