2023 (5) TMI 960 - AT - Income Tax

Exemption u/s.11 denied - delay involved in filing of Form 10B - HELD THAT:- As the assessee-trust does not cumulatively satisfy the set of conditions specified in Para 4(i) of the CBDT Circular No.10 and also had not filed any application for condonation of delay u/s.119(2)(b) of the Act as provided in Para 4(ii) of the said circular, therefore, there remains no occasion for condoning the delay involved in filing of Form 10B by the assessee beyond the stipulated time period. Thus, on the basis of my aforesaid observations, find no infirmity in the view taken by the lower authorities who had rightly declined the assessee’s claim for exemption u/s.11 of the Act.

A.O after declining the assessee’s claim for exemption u/s.11 summarily held its gross receipts as its income - AO after treating the assessee as an unregistered trust was obligated to have considered its claim for deduction of expenses as were raised in the income and expenditure account. Accordingly, though uphold the declining of the assessee’s claim for exemption u/s.11 of the Act, but at the same time, restore the matter to the file of the A.O with a direction to consider the assessee’s claim for deduction of expenses as debited in the income and expenditure account, i.e. to the extent the same are allowable under the Act.

Appeal of the assessee partly allowed for statistical purposes.