Nikhil Banga Kalyan Samity Vs. ITO, Ward-1(1), Exempt, Kolkata

Parties Involved

Facts Summary

The assessee, Nikhil Banga Kalyan Samity, filed its return of income for AY 2021-22 declaring ‘NIL’ income, which was initially accepted. However, the Assessing Officer rectified the intimation under section 154 of the Income Tax Act, 1961, and determined the total income at ₹85,60,540/- after disallowing the exemption claimed under section 11 due to a delay in filing the Tax Audit Report in Form No. 10B. The assessee appealed this decision before the Additional Commissioner of Income Tax (Appeals), who dismissed the appeal. Subsequently, the assessee filed an appeal before the Income Tax Appellate Tribunal. The Tribunal noted that Form No. 10B was filed with a one-day delay but was available at the time of processing the return. The Tribunal referred to a High Court decision which held that filing Form No. 10B is procedural and directory in nature.…

Legal Issues

• 1. Whether the rectification order disallowing the exemption claimed under section 11 was erroneous and bad in law.
• 2. Whether the exemption under section 11 can be denied on the ground of delay in filing Form 10B.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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