IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT (HYBRID HEARING)

BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER &

SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER I.T.A. No. 1238/SRT/2024 (Assessment Year: 2022-23)

Jayshri Gopallal Maharajshrini Vs. Assistant Director of Income Surat Srusti Trust, Tax, CPC, Bengaluru Makanjipark Society, Nr. Balashram, Katargam, Income Tax Officer, (JAO), Surat-395004 Exemption Ward, Surat [PAN No.AAATJ1753H]

(Appellant) .. (Respondent Appellant by : Shri Chitrang Vaiwala, C.A. from the office of Shri Sapnesh Sheth, C.A.

Respondent by: Shri Mukesh Jain, CIT DR Date of Hearing 23.04.2025 Date of Pronouncement 06.05.2025

O R D E R

PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:

This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeal), (in short “Ld. CIT(A)”), ADDL/JCIT (A)-8, Mumbai vide order dated 25.11.2024 passed for A.Y.

2022-23.

2. The assessee has raised the following grounds of appeal:

“1. On the facts and circumstances of the case as well as law on the subject, the Ld. ADDL/JCIT Commissioner of Income Tax (A) has erred in not appreciating the fact that assessee trust has already filed Form 10B on 25.09.2022 and also filed the screen shot of the UDIN generated at that time.

2. On the facts and circumstances of the case as well as law on the subject, the Ld. ADDL/JCIT Commissioner of Income Tax (A) has erred in confirming the action of Asst. Director of Income Tax, CPC in making huge addition of Rs. 44,68,753/- to the income of assessee by not allowing the amount claimed as application of income & accumulation of income.

3. On the facts and circumstances of the case as well as law on the subject, even otherwise also the addition if any can be made in respect of net income i.e. after allowing the experience and that gross amount cannot be charged to tax.

4. It is therefore prayed that the above addition made by Asst. Director of Income Tax, CPC and confirmed by Ld. ADDL/JCIT Commissioner of Income Tax (A) is prayed to be deleted.

5. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.”

3. The brief facts of the case are that the assessee filed return of income for the impugned assessment year on 30-09-2022 declaring total income at ₹1,09, 651/-. The assessee is a charitable trust registered under section 12A of the Act. An intimation was issued by the CPC under section 143(1) of the Act, in which the amount claimed by the assessee as application of income and accumulation of income was disallowed and gross receipts of the assessee trust were taxed in the hands of the assessee. The reason for such disallowance in the 143(1) intimation issued by CPC was that the assessee had filed the audit report in Form 10B belatedly and accordingly, the claim of the assessee for deduction under section 12A of the Act was disallowed.

4. In appeal before Ld. CIT(Appeals), the assessee submitted that the assessee had initially filed the audit report in Form 10B for the impugned assessment year on 25-09-2022 for claiming exemption under section 12Aof the Act, however, on 23-02-2023, on account of mistake by one of the employees of the chartered accountant of the assessee, he revoked the request for filing of Form 10B for assessment year 2022-23, which resulted technically into non-filing of audit report in Form number 10B for assessment year 2022-23. Accordingly, the assessee again uploaded audit report in Form 10B on the Government Portal on 25-11-2023. As a result of the said mistake and resultant delay in filing of audit report in Form number 10B, the assessee filed an application to the CIT (Exemptions), Ahmedabad on 25-04-2023 seeking condonation of delay in filing of Form 10B for assessment year 2022- 23. However, vide order dated 29-02-2024, the request for condonation was rejected by the concerned CIT (Exemptions). Thereafter, the assessee filed appeal before Ld. CIT(Appeals), who rejected the a