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Judgment
PERMADHUMITA ROY, JM:
The instant appeal filed by the assessee is directed against the order dated 26.09.2023 passed by the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi [hereinafter referred to as the Ld. CIT(A)] under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the Assessment Order dated 12.02.2020 passed by the ACIT, CPC, Bengaluru (hereinafter referred to as ‘the ld. AO’) under Section 154 of the Act for Assessment Year 2018-1919.
There is a delay of 769 days in preferring the appeal before us by the Assessee in support of which a representation explaining the delay has been filed contents whereof since seems to be genuine the delay is condoned.
It is the case of the assessee that the assessee trust is entitled to claim of deduction under Section 10(25) of the Act which was wrongly rejected by the Ld.CIT(A) merely on the ground that return under Section 139(1) of the Act claiming exemption was not filed before 31.08.2018 in the year under consideration which was filed on 17.10.2018. The delay in filing the return cannot be a ground for disallowance of exemption claimed under Section 10(25) of the Act as the case made out by the assessee is also supported by the order passed by the ITAT Mumbai Bench in the case of ITO vs. UTI Asset Management Company Ltd. in ITA No.2022/Mum/2025, wherein on identical facts and circumstances of the matter it was held as under:-
“We have heard the rival submissions and perused the material placed before us. We are of the considered opinion that the assessee is entitled to claim exemption u/s 10(25) of the Act, and is not even required to file its return for the purpose. Accordingly, the order of the Ld. AO denying the claim of deduction u/s 10(25) for the reasons that the return has been filed belatedly on 24.01.2019 as against the due date of filing of original return on 31.10.2018 is without any basis. We find no infirmity in the order of Ld. CIT(A), who has rightly deleted the addition and the same is, therefore, upheld.”
Having regard to the identical issue involve in the matter as of the issue dealt by the ITAT Mumbai as above the assessee found eligible for deduction u/s 10(25) of the Act. Hence, the order passed by the AO as confirmed by the first appellate authority is quashed. The appeal preferred by the assessee is thus allowed.
In the result, appeal filed by the Assessee is allowed.