SHRI JOGNIYA MATA SHAKTIPITH PRABANDH AVM VIKAS SANSTHAN,CHITTORGARH vs. ITO WD-1, CHITTOR, CHITTORGARH

PDF · subscribers
ITA 19/JODH/2025Status: DisposedITAT Jodhpur07 August 2026AY 2022-234 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that even if there is a delay in filing Form 10B, exemption under Section 11 cannot be denied if the report is available at the time of processing the return. The Assessing Officer was directed to allow the exemption claim.

What were the facts?

The assessee, a registered trust, claimed exemption under Section 11 of the Income Tax Act. The audit report in Form 10B was filed along with the return of income, but after the statutory deadline. The CPC denied the exemption claim due to the late filing of Form 10B.

What were the issues?

Whether denial of exemption under Section 11 is justified solely on the ground of late filing of the audit report in Form 10B when it was available before processing.

Which sections of the Income-tax Act were involved?

Section 11,Section 12A,Section 143(1)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

For Appellant: Shri Mahendra Gargieya
For Respondent: Ms. Shivani Bansal, CIT-DR

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT AND SHRI MAKARAND VASANT MAHADEOKAR, HON’BLE ACCOUNTANT MEMBER

ITA No. 19/Jodh/2025 (Assessment Year: 2022-23)

Shri Jogniya Mata Shaktipith ITO Ward-1 Prabanch AVM Vikas Sansthan Chittor M/s Mahendra Gargieya & Associates Advocates & Tax Consultants 537-538, 5th Floor, Mahima’s Trinity, Near Jyoti Rao Phule College, New Sanganer Road, Jaipur-302019 PAN No. AAZTS 4734 N Assessee by Shri Mahendra Gargieya (Advocate) (Virtually) Revenue by Ms. Shivani Bansal, CIT-DR (Physically) Date of Hearing 04 / 08 / 2026. Date of Pronouncement 07 / 08 / 2026.

ORDER PER: SHRI SAKTIJIT DEY, V.P.: This appeal by the assessee arises out of order dated 12.12.2024 passed by Additional Commissioner of Income Tax (Appeal) for the assessment year 2022- 23.

2 ITA No. 19/Jodh/2025 Asst. year: 2022-23 2. The dispute in the present appeal, basically relates to disallowance of assessee’s claim of exemption u/s 11 of the Income Tax Act, 1961 for alleged late filing of Form 10B.

3.

Briefly the facts are, the assessee is an institution/trust registered u/s 12A of the Act. For the assessment year under dispute, assessee filed its return of income on 31.12.2022 claiming exemption u/s 11 of the Act. However, the audit report in From 10B was not filed within the statutory time limit but along with the return of income. While processing the return of income u/s 143(1)(a) of the Act, the Centralize Processing Centre (CPC) did not allow assessee’s claim of exemption due to late filing/uploading of Form 10B. Though, the assessee challenged the denial of exemption u/s 11 of the Act by filing an appeal before the First Appellate Authority, however, the appeal was dismissed on the ground that the jurisdiction for condonation of delay lies with CIT(E).

4.

We have considered rival submissions and perused the materials on record. Admittedly, along with the return of income filed on 21.12.2022 the assessee had furnished the audit report in Form 10B. Whereas, the return of income was processed by CPC much after on 28.07.2023. Thus, it is a fact on record that much prior to the processing of return of income, the audit report in Form 10B was

3 ITA No. 19/Jodh/2025 Asst. year: 2022-23 available with the CPC. Now, it is fairly well settled that even if there is delay in furnishing the audit report in Form 10B, however, if such report is available at the time of assessment or processing of return of income, assessee’s claim of exemption u/s 11 cannot be denied solely on the ground of delay in filing the audit report. In this context we may refer to the following decisions:

 Kinkini Vs. ITO (ITA No. 1185/JPR/2025), order dated 24.12.2025  Association of Indian Panel Board Manufacturer Vs. CIT [2023] 157 taxmann.com 550  Raniwala Jewellers Private Limited Vs. ACIT (ITA No. 10/JPR/2025), order dated 06.05.2025 5. Though Ld. Counsel for the assessee has cited various other decisions, however, to avoid multiplicity we refrain from referring to them. Therefore, respectfully, following the ratio laid down in aforesaid judicial precedents, we direct the Assessing Officer to allow assessee’s claim of exemption u/s 11 of the Act, subject to, fulfillment of other conditions of the said provision. Even otherwise also, it has been noted by us that after denial of assessee’s claim of exemption u/s 11 of the Act, the entire receipt has been treated as income of the assessee without allowing any deduction. This, in our view, is wholly

4 ITA No. 19/Jodh/2025 Asst. year: 2022-23 unacceptable. Denial of exemption u/s 11 of the Act does not mean that the income of the assessee cannot be computed on commercial principles.

6.

In the result, the appeal is allowed.

Order pronounced in the open court on 07/08/2026.

Sd/- Sd/- (MAKARAND VASANT MAHADEOKAR) (SAKTIJIT DEY) ACCOUNTANT MEMBER VICE PRESIDENT Dated : 07/08/2026. Nimisha, Sr. PS True Copy

Copies to : (1) The appellant. (2) The respondent. (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File BY ORDER,

More judgments on Section 11

All 7,190 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →