R K EDUCATIONAL TRUST ,DELHI vs. ITO WARD EXEMPTION 2 (4) , DELHI

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ITA 5922/DEL/2026Status: DisposedITAT Delhi24 August 2026AY 2022-234 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the primary requirement of uploading Form 10B was complied with in time. The delay in e-verification due to a technical glitch was considered plausible. The Tribunal further noted that the filing of Form 10B within the stipulated time is a directory provision, not mandatory.

What were the facts?

The assessee, a charitable trust, filed its return of income and claimed exemption. The audit report in Form 10B was uploaded on the portal within the due date, but its e-verification by the authorized signatory was delayed due to a technical glitch. The lower authorities rejected the claim for exemption on this ground.

What were the issues?

Whether the delay in e-verification of Form 10B, despite timely uploading, can lead to denial of exemption. Whether the provision for filing Form 10B within the prescribed time is mandatory or directory.

Which sections of the Income-tax Act were involved?

Section 139(1),Section 143(1),Section 250

AI-generated summary — verify with the full judgment below

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

Before: SHRI VIMAL KUMAR & SHRI SANJAY AWASTHI

For Appellant: Shri A.K. Srivastava, CA
For Respondent: Shri Tarun Sharda, Sr. DR
Hearing: 24.08.2026

ITA No.5922/DEL/2026 R.K. EDUCATIONAL TRUST IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” NEW DELHI BEFORE SHRI VIMAL KUMAR, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No.5922/DEL/2026 Assessment Year: 2022-23 M/S R.K. EDUCATIONAL TRUST, Vs. INCOME TAX OFFICER, 8A/8, Western Extension Area, Karol Bagh, Ward 20(3), New Delhi, Delhi 110005. Central Revenue Building, PAN No. AACTR1512Q New Delhi 110002. Appellant Respondent Assessee by Shri A.K. Srivastava, CA Revenue by Shri Tarun Sharda, Sr. DR Date of hearing: 24.08.2026 Pronouncement on 24.08.2026 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. This appeal arises from order dated 28.03.2026, passed by Ld. Addl./JCIT(Appeals), Aurangabad, u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”).

1.1 In this case, the assessee is a charitable trust claiming exemption under the relevant provisions of the Act. The return of income was filed by the assessee on 01.11.2022, and thereafter, the return was processed u/s 143(1) of the Act, thereby determining total income of Rs.39,74,522. The assessee filed a rectification application with Ld.AO-CPC but the same was rejected on the ground that the audit report in Form 10B was not filed within the prescribed time.

ITA No.5922/DEL/2026 R.K. EDUCATIONAL TRUST 1.2 The assessee approached the Ld. Addl./JCIT(Appeals) where also he could not succeed on the basis of the fact that the Form 10B was not filed one month prior to the due date for furnishing return u/s 139(1) of the Act. The Ld. Addl./JCIT(Appeals) rejected the contention of the assessee that the audit report was duly uploaded on the Income Tax Portal on 29.09.2022, whereas the due date of filing the return of income for the said year was 07.11.2022. The Ld. Addl./JCIT(Appeals) has disregarded the assessee’s contention that the Form 10B was uploaded within time even though its e-verification was done only on 01.11.2022. The Ld. Addl./JCIT(Appeals) has mentioned on page 8 of the impugned order that such audit report must not only be filed in time but should also be duly electronically verified by the Authorized Signatory. Needless to say, the assessee did not succeed at first appellate stage.

1.3 The assessee has now approached the ITAT with grounds challenging this action of the authorities below.

2.

Before us the Ld. AR stated that the admitted fact was that the audit report in Form 10B was duly uploaded by the auditor on 29.09.2022. For this year the due date for filing of return of income was 07.11.2022. Due to a technical glitch, such audit report was only electronically verified by the Principal Officer of the Trust on 01.11.2022. It was the submission that the action of filing the audit

ITA No.5922/DEL/2026 R.K. EDUCATIONAL TRUST report was duly complied within this case and only due to a technical glitch, the said report could not be verified within time.

2.1 The Ld. DR relied on the findings given in the impugned order.

3.

We have heard both the Ld. AR/DR and have also perused the documents before us. We find that the primary requirement of uploading the audit report in Form 10B was duly complied with as the said Form was uploaded on 29.09.2022. Thereafter, we find the explanation of the assessee about a technical glitch preventing him from e-verifying the Form in a timely manner, plausible and believable. Even otherwise there is a considerable body of judicial literature which states that the filing of Form 10B within the stipulated time is a directory provision and not mandatory. We may refer to the following cases: -

a) FIIT Jee Foundation for Education Research & Training reported in 175 taxmann.com 260 (Del.), order dated 29.04.2025; b) Laxmannarayan Dev Shrishan Seva Khendra reported in 167 taxmann.com 548 (Guj.), dated 10.09.2024; c) Sau Dwarkabai Tai Karwa Charitable Public Trust reported in 174 taxmann.com 245 (Bom.), order dated 25.03.2025; d) Oneness Educational & Charitable Trust reported in [2024] 161 taxmann.com 554 (Orissa); e) Al Jamia Mohammediyah Education Society reported in [2024] 162 taxmann.com 114 (Bom.). Considering the discussion above, it deserves to be held that the assessee cannot suffer on account of any presumed delayed filing of Form 10B. 3

ITA No.5922/DEL/2026 R.K. EDUCATIONAL TRUST 4. In the result, appeal of the Assessee is allowed.

Order pronounced in the open court on 24.08.2026

Sd/- Sd/- (VIMAL KUMAR) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 15.09.2026 *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

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