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Facts
The assessee, a registered trust, filed its income tax return along with Form 10B after a delay of 39 days. The Assessing Officer denied relief under Section 11 of the Income Tax Act due to this delay.
Held
The Tribunal held that the delay in filing Form 10B was condonable, especially since it was filed before the return of income and in line with various High Court and Tribunal decisions.
Key Issues
Whether the delay in filing Form 10B can be condoned to allow for exemption under Section 11 of the Income Tax Act.
Sections Cited
11, 12A, 12AB, 254(1)
AI-generated summary — verify with the full judgment below
PER PAWAN SINGH, JUDICIAL MEMBER:
This appeal by assessee is directed against the orders of ld. CIT(A) dated 21.03.2025 for AY 2024-25. Though, the assessee has raised multiple ground of appeal, however, in our considered view, the substantial ground of appeal relates to denial of relief on application of income under section 11 of Income Tax Act, for want of delay in filing Form-10B, rest of the grounds of appeal are consequential.
Rival submissions of both the parties have been heard and record perused.
The learned Authorised Representative (ld. AR) of the assesseesubmits that assessee is a trust registered under Maharashtra Public Trust Act. The assessee is having registration under section 12A/12AB of Income Tax Act.
The object of the assessee is religious and charitable in nature. In furtherance of its object, the assessee trust is running/managing Church in Santacruz Mumbai. The assessee provides food, educational aid and medical held to the poor and needy persons. The assessee filed its return of income on 14.11.2024. Due date for filing report in Form 10B was 07.10.2024. The assessee filed it report in Form 10B on 14.11.2024, thus, there was delay of 39 days, though it was filed before filing return of income on the same date.
The assessing officer / Central Processing Centre (CPC) while processing the return of income not allowed application of income under section 11. The ld. AR of the assessee submits that there are series of decision by Tribunal and High Courts wherein it has been consistently held that filing of Form 10B is directory and delay in filing such for is liable to be condoned. Even if such report in Form 10B is available at the time of assessment order, the benefit of section 11 be allowed to the assessee.
The ld. AR of the assessee further submits that the he rely on the decision of Mumbai Tribunal in Church of Our Lady of Immaculate Conception Vs ITO in & 4998/ Mum/2025 dated 18.09.2025, wherein similar relief was allowed by Tribunal, copy of such decision is placed on record. The ld. AR of the assessee also submits that in a series of decision by various bench of Tribunal and High Courts held that the tax authorities must have justice- oriented approach rather than pedantic, and to condone the delay.
On the other hand, the learned Senior Departmental Representative (Sr. DR) for the revenue supported the order of lower authorities. The assessee has crossed the time limit for filing Form-10B.
We have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. We have also deliberated on laws relied by the ld. AR of the assessee. We find that there is very short dispute in the present appeal. Admittedly, there is delay of 39 days in filing Form 10B. Though, the same was filed along with the return of income.We find that in a series of decision, as relied by ld AR of assessee, various High Courts as well as Tribunals have taken view that when audit report / Form 10B was filed even at later stage and the same was available before assessing officer when return was processed, the assessee is entitled to exemption. Thus, considering the facts of the case and keeping in view, various decision of High Courts and co-ordinate bench of Tribunal including in Church of Our Lady of Immaculate Conception Vs ITO (supra), the delay in filing form 10B is also allowed and jurisdictional assessing officer (JAO) is directed to verify the fact and allow appropriate relief for application of income under section 11. The assessee is also directed to provide requisite details, if so desired by jurisdiction assessing officer. In the result, grounds of appeal
raised by assessee are allowed for statistical purpose.
6. In the result, the appeal of the assessee is allowed for statistical purpose.
Order was pronounced in the open Court on 31/10/2025.