DCIT, EXEMPTION CIRCLE, GHAZIABAD, GHAZIABAD vs. NOIDA GOLF COURSE SOCIETY, NOIDA

PDF · subscribers
ITA 8979/DEL/2025Status: DisposedITAT Delhi29 April 2026AY 2021-225 pages

In favour of the Revenue: the Revenue's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that a delay in filing the audit report is a curable procedural defect, especially when the audit was completed on time and the delay was inadvertent. Substantive benefits for charitable purposes should not be defeated by technicalities.

What were the facts?

The assessee filed its audit report in Form 10B after the due date, although the audit was completed within the permitted period. The Assessing Officer and the Commissioner (Appeals) rejected the claim for exemption on this ground.

What were the issues?

Whether a delay in filing the audit report in Form 10B, when the audit was completed on time, defeats the claim for exemption. Whether such a delay is a curable procedural defect.

Which sections of the Income-tax Act were involved?

Section 154,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “A” NEW DELHI

Before: SHRI YOGESH KUMAR US & SHRI SANJAY AWASTHI

Hearing: 16.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” NEW DELHI BEFORE SHRI YOGESH KUMAR US, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.8979/Del/2025 निर्धारणवर्ा/Assessment Year: 2021-22 DCIT, EXEMPTION, Circle, CGO-2, NOIDA GOLF COURSE SOCIETY, बिध Kamla Nehru Nagar, Ghaziabad, Sector 38, Noida, म Uttar Pradesh 201002. Uttar Pradesh 201303. Vs. अपीलधर्थी Appellant प्रत्यर्थी/Respondent Revenue by Shri Ajay Kumar Arora, Sr. DR Assessee by None सुिवधईकीतधरीख/ Date of hearing: 16.04.2026 उद्घोर्णधकीतधरीख/Pronouncement on: 29.04.2026 आदेश /O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER:

1.

This appeal arises from order dated 15.10.2025, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”) by Ld. Addl./JCIT(Appeals)-10, Mumbai. The main point in this appeal is that the assessee moved an application u/s 154 of the Act for allowing the benefit of exemption from taxation on the income shown in the returned of income. It is seen that the assessee obtained audit report in Form 10B within the permitted period, being 15.01.2022. However, this audit report was filed on 19.02.2022 instead of on the due date, being 15.01.2022. The rectification application was rejected by AO-CPC and the said rejection was confirmed by the Ld. Addl./JCIT(Appeals) on the ground that for claiming exemption the assessee was required to file the audit report within the statutory time period. It was held that since this was not done, therefore, the benefit of exemption could not be available to the assessee.

1.1 Aggrieved with this the assessee has approached the ITAT with grounds which challenge this action of the authorities below.

2.

Before us, on the last date of hearing, none appeared on behalf of the assessee but it was decided to proceed ahead with the adjudication with the help of Ld. DR. The Ld. DR pointed out the relevant dates and submitted that the time limits mentioned in the Act need to be followed in case the assessee wanted any exemption from taxation.

3.

We have considered the submissions of Ld. DR and have gone through the record before us. The judiciary has consistently adopted an equitable and judicious approach towards condoning delays in such procedural matters, emphasizing that substantive benefits for charitable purposes should not be defeated by technicalities. In the landmark judgment of CIT (Exemptions) v. Al Jamia Mohammediyah Education Society [2025] 176 taxmann.com 761/481 ITR 215 (SC), the Hon’ble Supreme Court approved and affirmed the judgment of the Hon'ble Bombay High Court in Al Jamia Mohammediyah Education Society v. CIT (Exemptions) [2024] 162 taxmann.com 114/298 Taxman 650/ [2025] 482 ITR 41 (Bom.), in which the court condoned the delay of 1257 days stating that a long-standing charitable trust with a consistent history of compliance should not be ineligible due to a bona fide professional error, in the absence of any mala fides. The Court also held that the approach should be equitable and balancing. Similarly, the Hon'ble Delhi High Court in Delhi Maharashtriya Educational and Cultural Society v. CIT (Exemptions) [2025] 179 taxmann.com 689/307 Taxman 448 (Delhi) condoned a delay of 16 days in filing Form 10B, attributing it to an inadvertent error by the tax professional. The Court reiterated the settled legal position that a bona fide procedural delay, without mala fides, should not prejudice an eligible trust, thereby upholding the exemption claim over a technical defect. This principle is firmly supported by various High Court judgments, including:

(a) Sarvodaya Charitable Trust v. ITO (Exemption), [2021] 125 taxmann.com 75/278 Taxman 148 (Guj);

(b) Society for Training Action Research and Rehabilitation v. CBDT, [2025] 176 taxmann.com 16/306 Taxman 52 (Ori.);

(c) Parul Mahila Pragati Mandal v. ITO (Exemption), [2025] 175 taxmann.com 922 (Gul.);

(d) Shilparamam Arts, Crafts & Cultural Society v. Addl./Jt./Dy./Asst. CIT/ITO [2024] 158 taxmann.com 714/468 ITR 315 (Telangana).

These rulings affirm that filing of the audit report in Form 10B is a procedural requirement, and a delay in its submission establishes a curable defect, especially where the audit was completed on time and the delay was inadvertent.

3.1 Accordingly, we direct that the exemption legally available to the assessee should be allowed forthwith.

4.

In the result, appeal of the assessee is allowed.

Order pronounced in the open court on 29.04.2026 Sd/- Sd/- (YOGESH KUMAR US) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29.04.2026 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Sr. No. Particulars Date 1 Date of dictation of Tribunal Order 21.04.2026 2 Date on which typed draft Tribunal Order is placed before the 22.04.2026 Dictation Member 3 Date on which typed draft Tribunal Order is placed before the 29.04.2026 other Member (in the case of DB) 4 Date on which the approved draft Tribunal Order comes to the 29.04.2026 Sr. P.S. /P.S. 5 Date on which the fair Tribunal Order is placed before the 29.04.2026 Dictating Member for sign 6 Date on which the fair Order is placed before the other Member 29.04.2026 for sign (in the case of DB) 7 Date on which the signed order comes back to the Sr. P.S. /P.S 29.04.2026 for uploading on ITAT website 8 Date of uploading, if not, reason for not uploading 29.04.2026 9 Date on which the file goes to the Bench Clerk 29.04.2026 10 Date on which order goes for xerox 11 Date on which the file goes for endorsement 12 Date on which the file goes to the Superintendent/O.S. for checking 13 Date on which the file goes to the Assistant Registrar for signature on the order 14 Date on which the file goes to dispatch section for dispatch the Tribunal Order 15 Date of dispatch of order 16 Date on which file goes to Record Room after dispatch the order

More judgments on Section 154

All 8,676 judgments and leading authorities on Section 154 →

Recent GST High Court judgments

Search GST case law →