Failure to file Mandatory Form 10 B by GUSEC due to Management Change: ITAT remands matter [Read Order]

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has remanded the matter to consider the Form 10 B filed belatedly by Gujarat University Startup and Entrepreneurship Council (GUSEC), on finding that the delay and failure in filing occurred due to the change in management.

Gujarat University Startup and Entrepreneurship Council (GUSEC), the appellant assessee filed the appeal against the order dated 07-02-2025 passed by CIT(A)/Addl/JCIT(A)-2, Gurugram for assessment year 2023-24.

It was alleged that the assessment order passed under section 143(1) of Income Tax Act by the Assessing Officer and confirmed by the first appellate authority under section 250 is bad in law and deserved to be uncalled for. Also alleged that the assessing officer as well as first appellate authority, has erred in law and on facts in making and confirming respectively the disallowance of expenditure of Rs. 41,31,250/-The same deserves to be deleted.

The appellant craves to reserve his right to add, alter, amend, or delete any ground of appeal during the course of hearing. The return of income was filed by the assessee on 30-12-2023 declaring total income at Rs. nil. The return of assessee was processed at CPC, Bengaluru and demand of Rs. 4,49,350/-was raised by CPC on 29-10-2024 vide intimation order under section 143(1) dated 29-10-2024. The Assessing Officer disallowed the amount accumulated or set apart up to 15% claimed by the assessee for the assessment year 2023-24.

It was submitted that the CIT(A) has mentioned that trust are obligated to file Form 10B which is mandatory and the assessee trust has submitted the Form 10B on 30-08-2023 while the dead line for filing Form 10B one month prior to the due date submitting the return. The due date for submitting the return in case of the assessee was 30-11-2023 and there was a delay of two months in filing the Form 10B.

The A.R. submitted that due to technical glitches, the assessee could not file Form 10B within the stipulated time and also along with the return of income on 30-11-2023. The A.R. therefore submitted that the said delay be condoned and Form 10B should be accepted and accordingly accept the income of the assessee counsel as per return of income filed by the assessee counsel.

The tribunal found that the assessee has filed the audit report in From 10B on 30-12-2023 thereby submitted the same after two months as per the statutory date.

The two member bench of Dr. BRR Kumar, Vice President and Ms. Suchitra Kamble, Judicial Member viewed that the assessee counsel submitted that there was a change in the management in 2023 (F.Y. 2023-24) and therefore the statutory Form 10B could not be filed within the stipulated date as well as with the return of income. Therefore, the delay was not deliberate or intentional and hence Form 10B should have been taken on record.

In light of the above finding the bench remanded the matter back to the file of CIT(A) and consider Form 10B and the delay is condoned. The CIT(A) will adjudicate the matter after taking into account Form 10B and pass the appropriate order.

The appeal of the assessee is partly allowed for statistical purpose.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates