IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “B” BENCH : PUNE BEFORE SHRI RAMA KANTA PANDA, VICE-PRESIDENT &

Ms. ASTHA CHANDRA, JUDICIAL MEMBER I.T.A.No.928/PUN/2025 (Assessment Year : 2021-2022)

(Assessment Year : 2021-2022)

(Assessment Year : 2021-2022)

(Assessment Year : 2021-2022)

(Assessment Year : 2021-2022)

(Assessment Year : 2021-2022)

(Assessment Year : 2021-2022)

(Assessment Year : 2021-2022)

For Assessee : Shri C.H. Naniwadekar, CA For Revenue : Shri Udaya Bhaskar Jakke, CIT Date of Hearing : 11.11.2025 Date of Pronouncement : 01.01.2026

ORDER

PER : ASTHA CHANDRA, JM This appeal filed by the Revenue is directed against the order of ADDL/JCIT (Appeals)-1, Guwahati [“CIT(A)”] dated 05/02/2025 pertaining to the Assessment Year (“AY”) 2021-22.

2. Briefly stated, the facts are that assessee is a charitable trust engaged in running educational institutions. It is registered under the Societies Registration Act, 1860 and the Bombay Public Trust Act, 1950. It is also registered u/s. 12A and 80G of the Income Tax Act, 1961 (“Act”). For A.Y. 2021-22, assessee filed its return of income on 30/12/2021 declaring total income of ₹36,460/- after claiming exemption u/s. 11 of the Act. The audit report in Form 10B was filed on 23/09/2022 with a delay of 268 days from the due date for filing of the same. Return of the assessee was processed u/s. 143(1) of the Act vide intimation order dated 23/08/2022. While processing ITR of the assessee-trust, the Central Processing Center, Bangaluru/Assessing Officer (“AO/CPC”) denied the exemption u/s. 11 of the Act on the ground that audit report in Form 10B was filed belatedly.

3. Aggrieved, the assessee filed an appeal before the Ld.CIT(A) challenging the intimation order passed u/s. 143(1) of the Act dated 23/08/2022. The appeal was filed with a delay of 449 days, however, Ld.CIT(A) condoned the same and decided the assessee’s appeal on the impugned issue holding that assessee is entitled for exemption u/s.11 of the Act and directed the Ld.AO/CPC to delete the addition of ₹6,37,30,847/-. The relevant findings and observations of the Ld.CIT(A) are reproduced below:-

“ 6.2.1 Verdict: The contention of the appellant has been gone through. During the course of appellate proceedings the appellant had submitted that:

With reference to the notice dated 20.02.2024 fixing the date of furnishing of written submissions in the captioned appeal on or before 27.02.2024. In response to the same, we hereby submit as under in this regard:

The assessee trust is an educational institution, registered under The Societies Registration Act 1860 (having registration no. F-56) and also registered under The Bombay Public Trust Act, 1950 (having registration number Bom. XXIX of 1950) since 1960. The main activities of the trust are carrying on educational activities in the interest of general public.

The assessee has received an intimation u/s 143(1) of the Act from CPC, Bengaluru on 23rd August, 2022 against which assessee has preferred an appeal before the Hon'ble CIT(A) for relief. There is a delay in filing of appeal by 449 days Regarding the delay in filing of appeal, we would like to submit that the assessee trust was not properly advised for espousing the legal issue now sought to be raised. The managing committee of the assessee society was given to understand that all the compliances were made and nothing further is required to be done and thus under bonafide impression that filing of Form 10B would resolve the issues involved in the subject intimation u/s 143(1) of the Act. However, after receipt of demand recovery notice on 09.08.2023, the assessee trust approached another tax professional to seek advice on the matter. The same has been stated in its affidavit enclosed with the appeal memo. Upon discussions with another tax professional, it was informed to us that the subject matter involved in the subject intimation u/s 143(1) of the Act is a legal issue which is covered in favour of the assessee by various precedents. Afte