IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’: NEW DELHI BEFORE SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUDHIR KUMAR, JUDICIAL MEMBER (Assessment Year: 2016-17)

Puran Chand Arora Charitable Trust, vs. ITO, Exp. 2 (4), 2325/1, 1^st Floor, Bahadurgarh Road, Delhi.

Sadar Bazar, Delhi – 110 006.

(PAN : AAATP0295N)

(APPELLANT) (RESPONDENT)

ASSESSEE BY : Shri Pradeep Kapoor, CA REVENUE BY : Ms. Harpreet Kaur Hansra, Sr. DR Date of Hearing : 12.11.2024 Date of Order : 22.01.2025

O R D E R

PER S.RIFAUR RAHMAN,AM:

1. This appeal is filed by the assessee against the order of ld. Commissioner of Income-tax (Appeals)-5, Mumbai (hereinafter referred to as ‘ld. CIT (A)) dated

19.12.2023 for the assessment year 2016-17.

2. Brief facts of the case are, assessee filed its return of income for Assessment Year 2016-17 on 28.07.2016. Due to non-filing of Form 10B along with return of income, the claim of the assessee in proceedings u/s 143(1) of Income-tax Act, 1961 (for short ‘the Act’) for the claim of exemption u/s 11 of the Act was rejected and the receipts declared by the assessee of Rs.15,69,680/- brought to tax and no other deductions were allowed.

3. Aggrieved, assessee preferred an appeal before the ld. CIT (A)-5, Mumbai and assessee has raised the issue of condonation of filing of Form 10B before the ld. CIT(A) and made a detailed submissions. It was submitted that the Form 10B was issued by the auditor on 16.06.2016 and ITR was filed by the assessee on 28.07.2016 declaring nil income after claiming deduction u/s 11(1)(a) to the extent of Rs.13,38,326/- being income applied for charitable purpose and balance amount of Rs.2,31,334/- was claimed as deduction. It was submitted that Form 10B could not be filed along with return of income due to technical glitches/issues at on IT Portal for online filing of form and relied on several decisions. After considering the submissions of the assessee, ld. CIT (A) rejected the plea and sustained the addition made by the AO u/s

143(1)(a) of the Act.

4. Aggrieved, assessee is in appeal before us raising following grounds of appeal :-

“1. A). The LD CTT(A) has erred in law and on the facts in denying the application of funds application towards the objects of the trust amounting to Rs13,38,326/- u/s 11 being Form No.10B ignoring the fact that Form No.10B could not be filed before filing of return due to glitches/issues at the IT portal. The issue at IT portal was acknowledged by the department and therefore allowing condoning of filling Form 10B late by issuing Circular No.10/2019 dated 22.05.2019, 28/2019 dated 27.09.2019 and 2/2020 [F No.197/5512018-ITA- I] dated 03.0l.2020. The Form No.10B was filed online and also before the Hon'ble CIT(E) on 20.03.2020 within the time prescribed by Circular 0 10/2019 dt. 22.05.2019 and 28/2019 dated 27.09.2019 (copies enclosed).

B). The LD CIT(A) has erred in law and on the facts in denying the application of funds application towards the objects of the trust amounting to Rs 13,38,326/- u/s 11 being amount applied for charitable activities in India for public at large out of the gross revenue, since the e-filing of Form 10B was not filed before the due date of filing of return though the audit report on Form No.10B was obtained from the CA on 16th June 2016, much before the filing of return & assessment proceedings u/s 143(1 )1154 were completed and was filed before CIT(A) at the time of appeal proceedings.

2. The LD CIT (A) has erred in denying the accumulation of Rs.2,31,354/- u/s 11 of the IT Act even though the amount accumulated or set a part was less that 15% of the gross receipts and this amount was invested in the modes specified in sub section 5 of section 11 of the Income Tax Act.”

5. At the time of hearing, ld. AR of the assessee raised the issue of non-

filing of Form 10B due to technical glitches and submitted that assessee has obtained audit report before filing the return of income. Relevant income of the Trust was applied for charitable purpose. Fu