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7. The learned Assessing Officer has resorted to the adjustments without complying with the provisions of Section 143(1) of the Act."

2. The assessee is a public trust registered under Maharashtra Public Trust Act, 1950 and also under section 12AB of the Act. The assessee filed the return of income for AY 2023-24 on 30.11.2023 declaring a total income of Rs. 1,13,693/-. The return was processed by CPC by issuing intimation under section 143(1) dated 19.11.2024 wherein adjustment of Rs. 1,20,14,112/- was made denying the exemption claimed under section 11 of the Act towards application of funds. The reason for denial of the exemptions claimed under section 11 is that the assessee has not filed Form-10B within the due date as specified. Aggrieved the assessee filed further appeal before the CIT(A). The assessee submitted before the CIT(A) that Form 10B was filed along with the return of income filed on 30.11.2023 and the delay being a procedural non-compliance cannot be the only ground for denying the exemption under section 11 of the Act. The CIT(A) dismissed the appeal by holding that for claiming exemption under section 11 it is mandatory on the part of the assessee to file the Form-10B within the specified due dates or get the delay condoned from CIT(E). Aggrieved the assessee is in appeal before the Tribunal.

3. We heard the parties and perused the material on record. We notice that the assessee is a registered Trust since 1963 under the Maharashtra Public Trust Act, 1950. The reason for denying the benefit of exemption under section 11 of the Act is that the assessee has not filed the Form-10B within the due date as specified i.e. one month prior to the date of filing the return of income under section139(1) of the Act. For the AY 2023-24 the due date for filing the return of income under section Snehasadan 139(1) was extended to 30.11.2023 and the claim of the Department is that the assessee should have filed Form-10B on or before 31.10.2023. Since the assessee filed the Form-10B along with the return of income on 30.11.2023 the exemption claimed under section 11 towards application of funds was denied to the assessee. It is a settled legal position that filing of Form-10B is a procedural requirement and any delay in filing the Form cannot be the only reason for denying the benefit under section 11 of the Act. In other words, the assessee which is a registered charitable trust if substantially satisfied condition for availing benefit of exemption under section 11 the same could not be denied the exemption, merely on bar of limitation in furnishing audit report in Form 10B. Further in assessee's case Form-10B was submitted along with the return of income and the same was available at the time of processing the return under section 143(1) of the Act. We notice that inspite of the Form-10B being available in the intimation under section 143(1), the application of funds towards charitable purposes have been considered merely for the reason that there is delay in filing Form-10B. We further notice that in assessee's own case for AY 2022-23 a similar issue has been considered where it has been held that "2. It emerges at the outset that the assessee's sole substantive grievance raised in the instant appeal challenges correctness of both the learned lower authorities action disallowing sec.11 exemption on account of it's failure in uploading the relevant audit report in Form-10B in the course of CPC "processing" dated 08.03.2022 as upheld in the Addl/JCIT's lower appellate discussion as under :

Snehasadan The appellant has filed the form 10B electronically on 07.11.2022 whereas the due date of filing of form 10B was 07.10.2022. For Any charitable organization registered u/s.12A(1)(b) of the IT Act, 1961, it is mandatory to file form 10B one month prior to the date of filing of return as per rule 17B of the IT Rules 1962. It is the duty of the appellant to follow the rule and procedure that is prescribed in the Income Tax Act and Income Tax Rules. The appellant has stated that an application of condonation of delay is filed before the Commissioner of Income Tax (Exemption), Mumbai. The appellate authority does not have the jurisdiction to condone the delay of filing of filing form 10B. The condonation u/s 119(2)(b) is to be condoned only by CIT(Exemption), Pr.CIT & CIT etc. The appellate authority relied on the decision of ITAT Ahmedabad in the case of Ambica Sarvajnik Trust Anklav Vs DCIT CPC in ITA No. 355 & 356/Ahd/2021. Where Hon'ble ITAT has held that -

"We have given our thoughtful consideration and perused the material available on record. The grounds of appeal raised by the assessee is very general in nature without substantiating its claim how, the Ld. CIT(A) erred in not granting exemption u/s. 11 & 12 of the Act. The Ld. CIT(A) has held that Form No. 10B was filed manually on 03/03/2020 during the appellate proceedings but no evidence of the Form 10B when was uploaded electronically by the assessee which is mandatory as per Section 12A(1)(b) of the Act read with Rule 17B of the Income Tax Rules. However, the Ld. CIT(A) has observed that the assessee is free to file the said Form 10B online and/or approach the CIT-(Exemption), Ahmedabad after filing Form 10B electronically and to condone the delay in accordance with the delegated powers vested u/s.119(2)(b) of the Act. Such a power u/s.119(2)(b) is not vested with Ld. CIT(A). Therefore, the Ld. CIT(A) dismiss the appeal filed by the assessee. Now before the Tribunal, the assessee has not produced only details of filing Form 108 electronically with condone delay petition. In absence of the same, We do not find any infirmity in the order passed by the Ld. CIT(A) and therefore we have no hesitation in confirming the order passed by the Ld. CIT(A).