2024 (3) TMI 206 - AT - Income Tax

Exemption u/s 11 - Claim denied as assessee filed Form 10B beyond the time limits specified u/s 139(1) - assessee is a registered Trust u/s 12A - AR has submitted that the assessee filed Form 10B within the time limit prescribed u/s 139(1) and time limit prescribed for the A.Y. 2018-19 was 31.07.2018 - HELD THAT - On verification of the acknowledgement filed by the assessee, it is clear that the assessee filed Form 10B on 31.07.2018 i.e. on the last day of due date of filing of Form 10B. But the revenue authorities have not at all considered the filing of Form 10B and erroneously denied the exemption claimed by the assessee u/s 11 of the Act. It is also undisputed fact that the assessee is a registered Trust u/s 12A of the Act. Therefore, we set aside the orders passed by the revenue authorities and direct the AO to allow the exemption claimed by the assessee u/s 11 of the Act, after verification of the claim. Accordingly, the grounds raised by the assessee are allowed.

Summary

Issues:
The appeal against the order of Commissioner of Income Tax (Appeals) [CIT(A)] regarding the denial of exemption claimed by the assessee u/s 11 of the Income Tax Act, 1961 for the Assessment Year 2018-19.

Summary:
The assessee, a registered Trust u/s 12A of the Act, filed a return of income for A.Y. 2018-19 claiming exemption u/s 11 of the Act. The return was processed u/s 143(1) resulting in a tax demand, which the CIT(A) upheld due to a delay in filing Form 10B. The assessee appealed to the Tribunal, arguing timely filing of Form 10B. The Tribunal found that Form 10B was indeed filed within the prescribed time limit of 31.07.2018. As the revenue authorities had erroneously denied the exemption, the Tribunal set aside their orders and directed the AO to allow the exemption claimed by the assessee u/s 11 of the Act after verification. The appeal of the assessee was allowed, and the order was pronounced on 29th February 2024.

Key Points:
1. The assessee, a registered Trust u/s 12A, filed a return of income for A.Y. 2018-19 claiming exemption u/s 11.
2. The CIT(A) upheld a tax demand due to a delay in filing Form 10B, leading to the appeal before the Tribunal.
3. The Tribunal found that Form 10B was filed within the prescribed time limit of 31.07.2018.
4. The revenue authorities had erroneously denied the exemption claimed by the assessee u/s 11 of the Act.
5. The Tribunal directed the AO to allow the exemption claimed by the assessee after verification, setting aside the orders of the revenue authorities.
6. The appeal of the assessee was allowed, and the order was pronounced on 29th February 2024.