M/S. LITTLE BEE CHARITABLE TRUST,KOLKATA vs. I.T.O., WARD - 1(4), KOLKATA

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ITA 1212/KOL/2026Status: DisposedITAT Kolkata21 July 2026AY 2021-20224 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the belated filing of Form 10B is a technical and procedural breach and should not lead to the denial of exemption. The exemption was allowed as claimed by the assessee.

What were the facts?

The assessee, a charitable trust, claimed exemption under Sections 11 and 12. The tax audit report (Form 10B) was filed belatedly, leading to the disallowance of exemption during the processing of the return. The CIT(A) upheld this disallowance.

What were the issues?

Whether exemption under Sections 11 and 12 can be denied solely for the belated filing of the tax audit report (Form 10B).

Which sections of the Income-tax Act were involved?

Section 11,Section 12,Section 154,Section 143(1)

AI-generated summary — verify with the full judgment below

आयकर \ �Ȣ�ȣ��\ͬ ����, कोलकाता पीठ “एसएमसी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH: KOLKATA Į Ȣ��ȡ�ȯ��Ǖ�ȡ����ȯ�ȡ�  �è���ȯ�  �¢ [Before Shri Rajesh Kumar, Accountant Member] I.T.A. No.1212/Kol/2026 Assessment Year: 2021-22 M/s Little Bee Charitable Trust Vs. ITO, Ward-1(4), Exempt, Kolkata

(PAN: AAATL 2698 D) ( \ �Ȣ�ȡ�ȸ ) Respondent / Ĥ×��ȸ Appellant / Date of Hearing / सुनवाई 09.07.2026 �ȧ�Ǔ�ͬ � Date of Pronouncement/ 21.07.2026 ] �ȯ��` ɮ�Ȫ��ȡ��ȧ�Ǔ�ͬ � For the Appellant/ Shri Sunil Surana, AR Ǔ��ȡ[ǐ��Ȣ �ȧ�j ��  ȯ For the Respondent/ Smt. Pampa Ray, Sr. DR �ȡ�è���ȧ�j ��  ȯ��

ORDER / आदेश

This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-Addl/JCIT(A)-6, Mumbai (hereinafter referred to as the “Ld. CIT(A)”] dated 18.02.2026 for the AY 2021-22. 2. Issue raised in ground no. 2 is against the confirmation of rectification order passed u/s 154 thereby upholding the addition of Rs. 9,48,495/- on account of income applied during the year only on the ground that audit report was not filed within due date.

2 I.T.A. No.1212/Kol/2026 Assessment Year: 2021-22 M/s Little Bee Charitable Trust 3. Facts in brief are that the assessee filed return of income on 10.03.2023 declaring total income of nil. The assessee has claimed exemption u/s 11 and 12 of the Act. The return was processed u/s 143(1) on 8.3.2023 accepting the returned income. Subsequently the AO/CPC has observed that the assessee has not filed tax audit report in Form 10B in the prescribed format before the due date. Accordingly the AO issued notice of rectification to the assessee for the same. The rectification order was passed u/s 154 read with Section 143(1) wherein the exemption claimed u/s 11 and 12 of Rs. 9,46,400/- was disallowed for the reason of delayed filing of audit report in form 10B.

4.

In the appellate proceedings, the Ld. CIT(A) has dismissed the appeal of the assessee by simply holding that the assessee has not filed form 10B within one month prior to the due date for furnishing return of income u/s 139(1) which is in violation of Rule 12A(1)(b) of the Income Tax Rules, 1962. Accordingly the Ld. CIT(A) held that mandatory provision of Statute were not complied with by the assessee and exemption claimed in the return of income was rightly disallowed and added to the income of the assessee.

5.

We have heard the rival contentions and perused the material on record. We find that admittedly Form 10B was filed belatedly by the assessee. However the same was before the AO at the time of processing return of income. In our opinion, the delayed filing of form 10B is a technical and procedural breach and cannot be used to deny the exemption claimed by the assessee when the assessee is registered u/s 11 & 12 of the Act that too in the rectification order passed u/s 154/ 143(1). Pertinent to state that the AO while processing the return of income of the trust has allowed the exemption u/s 11 & 12 of the Act. The case of assessee is squarely covered by the decision of Co-ordinate Bench of Kolkata in the case of Saraswati Devi Educational and Social Trust vs. CPC, Bangalore/ITO,Ward-1(3), Exemption, Kolkata in ITA No. 873 & 874/Kol/2025 for AY 2020-21 and 2023-24 dated 04.11.2025. The relevant portion of the order is extracted below:

“4. After hearing the rival contentions and perusing the material available on record, we find that the assessee has filed its return of income on 27.03.2021 for A.Y.2020-2021 and on

3 I.T.A. No.1212/Kol/2026 Assessment Year: 2021-22 M/s Little Bee Charitable Trust 31.10.2023 for A.Y.2023-2024. The Form 10B and Form 10BB had been filed along with returns of income for the said assessment years under consideration on 27.03.2021 & 31.10.2023, respectively. The due date for furnishing Form 10B/10BB for the assessment year 2020-2021 & 2023-2024 was prior to one month before the due date for furnishing return u/s.139(1) of the Act. The intimations/orders u/s.143(1) of the Act had been issued for A.Y. on 24.12.2021 and for AY 2023-2024 on 04.12.2024. The CPC had denied the assessee the benefit of exemption u/s.11 & 10(23C) of the Act on the ground that the audit report in Form 10B/10BB had been filed belatedly. The ld CIT(A) dismissed the appeals of the assessee by observing that the in order claim exemption u/s 11 & 12 of the Act certain conditions are required to be satisfied which were not fulfilled by the assessee. It is noticed that the audit report was very much available with the Assessing Officer when the returns of income were processed and this is only atechnical/procedural breach. The coordinate bench of the Tribunal has been holding that such technical lapse cannot lead to denial of exemption u/s.11 & 12 of the Act that too in the intimation u/s.143(1) of the Act. This view is also supported by the decision of the Hon’ble Gujarat High Court in the case of Sarvodaya Charitable Trust, reported in [2021] 125 taxmann.com 75 (Gujarat), wherein the Hon’ble High Court has held that exemption u/s.11 of the Act cannot be denied for delayed filing of Form 10B. It has also been held by the Hon’ble High Court that as the assessee is a charitable trust who satisfies the conditions for availing the benefit of exemption, the assessee could not be denied exemption merely on the ground that Form 10B was filed belatedly especially when legislature had conferred wide discretionary powers to condone such delay on authorities concerned. Consequently, respectfully following the decision of the Hon’ble Gujarat High Court, the intimations issued u./s.143(1) of the Act by the Assessing Officer and confirmed by the ld. CIT(A) denying the benefit of Section 11 & 12 of the Act for A.Y.2020-2021 on account of delay in filing Form 10B and denying the benefit of Sections 11 or 10(23C) of the Act on account of belated filing of Form 10BB for A.Y. 2023-2024, are hereby quashed.” 6. Considering the above facts of the case and the ratio of the above decision, we are not in agreement with the conclusion drawn by the Ld. CIT(A).and accordingly we set aside the order of Ld. CIT(A) and direct the AO to allow exemption/deduction of ₹ 9,46,400/- as claimed by the assessee.

7.

In the result, the appeal of the assessee is allowed. Order is pronounced in the open court on 21st July, 2026. Sd/- (Rajesh Kumar/राजेश कुमार) Accountant Member/लेखा   �è� Dated: 21st July, 2026 SM, Sr. PS

4 I.T.A. No.1212/Kol/2026 Assessment Year: 2021-22 M/s Little Bee Charitable Trust Copy of the order forwarded to: 1. Appellant- M/s Little Bee Charitable Trust, 37/1C, Hazra Road, Sarat Bose Road, Kolkata-700029 2. Respondent – ITO, Ward-1(4), Exempt, Kolkata 3. Ld. CIT(A)- Addl/JCIT(A)-6, Mumbai 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata

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