Case Number: ITA 1516/DEL/2021
Appellant: The Indian Association of the Experiment in International Living, Mumbai
Respondent: ITO, Ward-Exemp-2(3), Delhi
Assessment Year: 2017-18
Case Filed On: 2021-10-25
Order Type: Final Tribunal Order
Date of Order: 2022-12-20
Pronounced On: 2022-12-20
The case of The Indian Association of the Experiment in International Living vs. ITO, Ward-Exemp-2(3), Delhi pertains to the disallowance of deductions under Section 11 of the Income Tax Act, 1961 by the ITO for the assessment year 2017-18. The appellant, a registered charitable trust based in Mumbai, filed its return of income on 30.08.2017 declaring a gross total income of ‘NIL’. However, the Central Processing Centre (CPC) disallowed the deductions under Section 11, determining the total income at Rs. 5,82,963/- due to the late filing of Form 10B.
The hearing for the case took place on 13th December 2022, with the final pronouncement on 20th December 2022. The appellant argued that although Form 10B was filed on 10.10.2017, it was within the extended due date for filing the return, which was 7.11.2017. The appellant contended that the filing of Form 10B is not mandatory but directory, relying on judicial precedents such as the decision of the Hon’ble Calcutta High Court in CIT vs. Hardeodas Agarwalla Trust [(1992) 198 ITR 511 (Cal.)], which held that the filing of Form 10B was not mandatory but directory.
On the other hand, the Departmental Representative (DR) supported the disallowance, arguing that the appellant failed to file Form 10B along with the return of income or before the due date.
The Tribunal, comprising Accountant Member Shri Shamim Yahya and Judicial Member Shri Anubhav Sharma, analyzed the submissions and material on record. They noted that the appellant had indeed filed Form 10B on 10.10.2017, which was within the extended due date for filing the return, contrary to the CIT(A)’s finding.
The Tribunal referred to the Hon’ble Calcutta High Court’s decision in CIT vs. Hardeodas Agarwalla Trust, which established that the appellate authority has plenary powers in disposing of an appeal and can accept the audit report even if not filed initially with the return. The Tribunal emphasized that the case law supports the appellant’s contention that the filing of Form 10B is directory, not mandatory.
In the final judgment, the Tribunal set aside the orders of the Revenue authorities and allowed the appeal filed by The Indian Association of the Experiment in International Living. The Tribunal directed the Assessing Officer to allow the deductions under Section 11, as the Form 10B was filed within the extended due date.
In conclusion, the appeal filed by The Indian Association of the Experiment in International Living against the disallowance of deductions under Section 11 was allowed. The Tribunal underscored that the filing of Form 10B within the extended due date should not warrant disallowance, aligning with established judicial precedents.
Order Pronounced: 20th December 2022
Accountant Member: Shri Shamim Yahya
Judicial Member: Shri Anubhav Sharma
Note: This summary is based on the final order pronounced by the Income Tax Appellate Tribunal, Delhi Bench ‘H’, New Delhi.
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