Satnam Education and Rural Welfare Society, Mohali vs. The ITO, Ward 6 (1)m, Mohali

Parties Involved

Facts Summary

The appellant, Satnam Education and Rural Welfare Society, Mohali, is a society registered under section 10(23C)(vi) engaged in providing education and rural welfare. The society filed a belated Income Tax Return (ITR) under section 139(4) for the assessment year 2020-21 on 19.03.2021, declaring total income at NIL after claiming exemption under section 10(23C)(vi) amounting to Rs. 1,32,20,296/-. The Assessing Officer (AO) processed the return and made a disallowance of the exemption claimed under section 10(23C)(vi) and treated the entire receipt as income due to the late filing of the audit report in Form 10BB and ITR. The society had filed Form 10BB just after 2 days of the extended due date. The reason for the late filing was that the society did not receive the order granting registration under section 10(23C)(vi), which was applied for on 29.02.2020 and granted on 17.03.2021. The delay of 2 days in filing Form 10BB was condoned by the Competent Authority (CIT). The society argued that the delay in filing the return and audit report was due to the delay in passing the order by the Chief Commissioner of Income Tax (Exemption) under section 10(23C) of the Act, which was beyond the control of the society.…

Legal Issues

• 1. Whether the CIT(A) erred in dismissing the appeal without considering the merits of the case?
• 2. Whether the delay in filing the return and audit report should be condoned?

Judgment Outcome

Decided in favour of Assessee.

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