IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR “SMC” BENCH :: NAGPUR BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER (Assessment Year : 2018-19)

Shri Pandurang Sansthan ITO (Exemption), Deulgaon Mali at post Deulgaon Ward-2, Nagpur.

Vs.

Mahi, Mehkar-443001 PAN: AAGTS 8497 P (Appellant) (Respondent)

Present for:

Assessee by : Shri Abhay Agrawal, Ld. Advocate Revenue by : Shri Surjit Kumar Saha, Ld. Sr.D.R.

Date of Hearing : 27.06.2025 Date of Pronouncement : 23.09.2025

O R D E R

This appeal has been preferred by the Assessee against the order dated 24/06/2024 impugned herein passed by the ADDL/JCIT (Appeals), Madhurai (in short, ‘Ld. Commissioner’) u/sec. 250 of the Income Tax Act, 1961 (in short, ‘Act’) for the A.Y. 2018-19.

2. At the outset, it is observed that there is a delay of 15 days in filing the present appeal. The Assessee has filed sworn affidavit dated 06/09/2024 and mentioned the reasons for causing delay. The reasons for condonation of delay stated by the Assessee, appears to be genuine, bonafide and unintentional, thus the delay is condoned.

3. Coming to the merits of the case, it is observed that in this case, the Assessee being a public charitable trust registered under applicable laws, filed its return of income on dated 31/03/2019 declaring total income of Rs. 32,099/- for the assessment year under consideration before the due date as per section 139(4) of the Act and claimed exemption u/sec. 11 of the Act. Subsequently, the return filed by the Assessee was processed u/sec. 143(1) of the Act on dated 30/12/2020 by the CPC, whereby a demand of Rs. 3,82,168/- has been raised mainly on the ground that Form No. 10B was not filed electronically along with return.

4. The Assessee, being aggrieved, challenged the said disallowance/ addition by filing first appeal before the Ld. Commissioner, however, of no avail, as the Ld. Commissioner dismissed the appeal of the Assessee by holding that the Assessee has already uploaded the digital signed Form 10B on 16/10/2021 and has filed condonation petition before the jurisdictional CIT(Exemption), Pune, whereby application dated 31/05/2021 which is pending for disposal and, therefore, CPC is correct on disallowance exemption u/sec. 11 of the Act, as the return was filed after the due date u/sec. 139(1) of the Act and Form 10B filed is not valid, being unsigned and the appellate authority has no discretionary power, to relax the provision of the statute.

5. The Assessee has claimed that it had obtained audit report in Form 10B from the Chartered Accountant on 22/08/2018 i.e. well before the due date, however, due to bonafide and technical lapses, the said form was e-filed on 16/02/2021 and, thereafter the Assessee also sought for condonation of delay in filing Form 10B before the Ld.CIT(Exemption), Pune dated 31/05/2021, which has subsequently been rejected vide order dated 03/12/2024. The Assessee in support of its claim also relied on various judgments, such as, CIT (Exemption) vs. Laxmanarayan Dev Shrishan Seva Khendra [2024] 167 taxmann.com 548 (Guj. HC); and Sahaj Seva Trust vs. ITO (Exemption) [2025] 174 taxmann.com 784 (Pune Trib.).

6. This Court observes that the Tribunal at Pune in the case of Sahaj Seva Trust (supra) has also dealt with an identical issue, wherein Form 10B was filed belatedly during appellate proceedings and Hon'ble Tribunal allowed the appeal of the Assessee and/or claim lodged u/sec. 11 of the Act, by observing and holding as under:-

“1. The captioned appeal at the instance of assessee pertaining to A.Y. 2014-15 is directed against the order dated 17.12.2024 passed by National Faceless Appeal Centre, Delhi arising out of the Assessment order dated 14.01.2021 passed u/s.154 r.w.s.143(1) of the Income-tax Act, 1961 (in short ‘the Act). 2. The only grievance of the assessee is that the benefit of sections 11 and 12 has been denied to the assessee for non-filing of Form No.10B within the prescribed time limit and that ld.CIT(E) has not considered the Form No.