IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “K (SMC)”, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER (Assessment year: 2023-24)

Rotary Club Of Bombay vs ITO (Exem.) Ward 2(2), Mumbai Queens Necklace Charitable Aayakar Bhawan, M.K. Road Trust Mumbai-400020 B 41/45, Paragon Centre, Pandurang Budhkar Marg, Worli, Mumbai-400013 PAN: AAATR4200K APPELLANT RESPONDENT Assessee by : Shri Kishor Patel, Respondent by : Shri Bhagirath Ramawat (SR DR)

Date of hearing : 10/02/2026 Date of pronouncement : 06/03/2026 O R D E R Per: Anikesh Banerjee (JM):

The instant appeal of the assessee filed against the order of the Ld.

Commissioner of Income Tax Appeal ADDL/JCIT (A) Raipur, [for brevity ‘the Ld. CIT(A)], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for assessment year 2023-24, date of order 04.10.2025. The impugned order emanated from the order of the CPC Bengaluru (for brevity the ‘Ld. AO’)

order passed under section 143(1) of the Act date of order 18.11.2024

2. The brief facts of the case are that the assessee is a public trust registered under the Maharashtra Public Trusts Act, 1950. During the impugned assessment year, the assessee filed its return of income under section 139(1) of the Act. In terms of the statutory requirements, the assessee was also required to furnish the audit report in Form No. 10B within the prescribed due date. However, Form No. 10B was filed with a delay of 29 days beyond the stipulated due date. Consequently, the Ld. AO denied the assessee’s claim for exemption under sections 11 and 12 of the Act. Aggrieved by the said disallowance, the assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) has set out the entire factual matrix relating to the assessee’s appeal, which is reproduced hereunder:

“STATEMENT OF FACTS

6. The statement of facts filed by the appellant in Form 35 are as under:

"STATEMENT OF FACTS “1. The Appellant is a Public Trust registered under the Maharashtra Public Trusts Act, 1950 and also under section 12AB of the I.T.Act, 1961. It is assessed in the status of Association of Persons (A.O.P. Trust). The Appellant is established for charitable purposes. The Appellant has claimed exemption under sections 11 & 12 of the I.T. Act, 1961.

2. The Appellant has e-filed Return of Income for the Assessment Year 2023 2024 on 29.11.2023 declaring Total Income of Rs. 8,750/- and claimed Tax Refund of Rs.1,01,089/-.

3. The Centralized Processing Centre - Income Tax Department, Bengaluru (herein after referred to as "CPC - ITD") has processed the Return of Income e-filed by the Appellant for the Assessment Year 2023-24 by issuing an Intimation under section 143(1) of the Act, vide Intimation dated 18.11.2024 and assessed the Appellant on Total Income of Rs. 31,40,538/- against Taxable Income of Rs. 8,748/- by making huge additions by way of adjustments of Rs. 31,31,790/- by disallowing amount accumulated or set apart for application to charitable or religious purposes or for the stated objects of the trust to the extent it does not exceed 15 per cent of income derived from property held in trust under section 11(1)(a) of the Act amounting to Rs. 31,31,790/- on the ground that the Appellant has not e-filed the Form No.10B being Audit Report under section 12A(1)(b) of the Act within the due date as specified and raised a huge tax demand of Rs. 8,56,040/- after adjusting the Tax refund of Rs. 1,01,089/-.

4. The extended due date for e-filing of Form No. 10B for the Assessment Year 2023-24 was 31.10.2023 and the Appellant has e-filed Form No. 10B issued by the Chartered Accountant on

29.11.2023 vide acknowledgment no. 533536960291123 which is delayed by 29 days.

5. The extended due date for e-filing of Return of Income under section 139(1) of the Act for the Assessment Year 2023-24 was 30.11.2023 and the Appellant has e-filed the Retum of Income in ITR-7 for the Assessment Year 2023-24 within the extended due date i.