Sarvajanik Kelavani Mandal vs. DDIT, CPC, Bengaluru

Parties Involved

Facts Summary

The assessee is a charitable trust registered under section 12A of the Income Tax Act, 1961. The trust filed its return of income for the assessment year 2019-20 on 31/10/2019, declaring a total income of Rs. NIL, after claiming exemption under section 11 of the Act. The CPC processed the return under section 143(1) of the Act and denied the exemption claimed by the assessee under section 11 of the Act on the ground that the assessee had not attached the relevant document of registration under section 12A of the Act. The assessee preferred an appeal before the CIT(A), who found that the assessee was a validly registered charitable trust under section 12A of the Act but observed that the assessee-trust was obliged to file the Audit Report in Form 10B before the due date as mandated in the Income Tax Act for filing of the same. The CIT(A) upheld the order of the AO denying the claim exemption under section 11 of the Act but for a different reason.…

Legal Issues

• 1. Whether the Commissioner of Income-tax (Appeals) erred in confirming the action of the learned ADIT in making huge additions by disallowing the amount of Rs.8,46,07,149/- claimed as application of income and by disallowing Rs.40,99,536/- as accumulation of income on the ground that the audit report in Form 10B was uploaded belatedly.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Adv. Chandansinh Solanki Educational Trust Vs. ITO Exemption Ward, Mumbai

• Khemka Charity Trust vs. Income Tax Officer (Exemption)

  Kolkata Bench benchAY 2018-19Allowed

• FRP Institute Vs. The Income Tax Officer, Exemption Ward-3, Chennai

• Bansal Foundation

  Kolkata Bench benchAY 2022-2023Allowed

• Ambica Education Trust Vs. Asst. Director of Income Tax, CPC

  Ahmedabad bench

• Vikalp Education Society Vs. DCIT

  Delhi Bench benchAY 2022-23Allowed