VETAL BAMBARDE VIBHAG SHIKSHAN PRASARK MANDAL,PANDUR, KUDAL, SINDHUDURG vs. INCOME TAX OFFICER, EXEMPTION WARD, KOLHAPUR, KOLHAPUR, MAHARASHTRA

The Ld. AR filed paper book. The relevant paragraphs of the written submissions filed by the Ld. AR are reproduced here as under : “I. Availability of Form 10B at the time of appeal 1. Due to non-filing of Form 10B the CPC has treated gross receipts of the appellant as its income. The appellant humbly submits that submission of Form 10B is just a

The Ld. DR relied on the order of the Assessing Officer (AO) and Ld. CIT(A).

We have heard both the parties and perused the record. In this case, assessee had income tax return on 25.03.2016 for AY 2015-16 declaring total income at Rs. Nil.

In this case, assessee was denied deduction u/s 11 as the assessee had not filed Audit Report in Form No. 10B along with the return of income. It has been submitted before us that assessee had got Audit Report in Form No. 10B on 15.09.2015. Ld. AR filed copy of the same. The same is scanned and reproduced here are under :

It is a fact that the assessee is a charitable trust registered u/s 12A of the Act. On perusal of the Profit and Loss Account Balance Sheet filed by the assessee in the paper book pages 22- 26, it is observed that the assessee is receiving grants more than 75%, thus, assessee is substantially financed by the Government. The total income as per Income and Expenditure Account (page 24 of the paper book) of the assessee was Rs.1,94,10,723/- and grants received were Rs.1,40,18,422/-. The profit of the assessee was only Rs.18,74,048/-. However, the CPC, while denying deduction u/s 11 assessed the total income at Rs.1,79,24,396/-. Thus, CPC has taxed the entire receipts of the assessee. There is no provision in the Income Tax Act to tax entire receipt of the assessee without considering the expenditure claimed, which were incurred for the objects of the trust.

ITAT, Pune in the case of Shri Ganadhipati Gandharacharya Kuntiusagar Vidya Sodh Sansthan Vs. Income Tax Officer in ITA Nos. 2023 to 2026/PUN/2025, dated 09.12.2025 has held as under : “11. Based on the factual matrix of the case and legal position enumerated above and in view of the decision (supra) of the Co- ordinate Bench of the Pune Tribunal and in the absence of any contrary material brought to our notice, we hold that the Ld. Addl./JCIT(A) was not justified in rejecting the claim of exemption u/s 11 of the Act on account of delay in filing of return of income as well as delay in uploading the audit report in Form 10B. We, therefore, set aside the order of the Ld. Addl./JCIT(A) and direct the Ld. AO/CPC to allow the claim of exemption u/s 11 of the Act after due verification in

The Hon’ble Gujarat High Court in the case of CIT (Exemptions) Vs. Laxmanarayan Dev Shrishan Seva Khendra, (2026) 488 ITR 794 (Gujarat) has held as under : Quote, “7. Reference to the aforesaid decision has no connection whatsoever remotely to the facts of the present case and therefore, in the facts of the present case, the Tribunal has rightly followed the decision of this Court in case of Sarvodaya Charitable Trust v. ITO (Exemption) in Application No.6097 of 2020 decided on 09th December, 2020/[2021] 125 taxmann.com 75/278 Taxman 148 (Gujarat) as well as the decision in case of Social Security Scheme of GICEA (supra) to uphold the decision of the CIT (Appeals), wherein this Court has held that the approach of the authority in such type of cases should be equitable, balancing and judicious. In The facts of the case, when the assessee has already filed the audit report in Form 10B electronically on 7.02.2021 during pendency of appellate proceedings along with copy of audited financial statements, delay in filing the said form is rightly condoned by CIT(A) and the Tribunal. 8. In such circumstances, we are of the opinion that the Tribunal has not committed any error by not following the decision in case of Wipro Limited (supra) as referred to and relied upon by learned advocate for the appellant-Revenue, and has rightly followed the decision of this Court in case of Social Security Scheme of GICEA (supra). 9. In view of the foregoing reasons, we are of the opinion that no question of law much less any substantial question of law arises from the impugned order of the Tribunal. The Appeal is accordingly dismissed.” Unquote.

Respectfully following the judicial precedents, we direct the AO to consider the Audit Report filed by the assessee in Form No. 10B and allow deduction u/s 11 of the Act, if found in order. Accordingly, appeal of the assessee is allowed for statistical purpose.

In the result, the appeal of the assessee is allowed for statistical purpose.