BHIKKHU SANGHAS UNITED BUDHHIST MISSION,MUMBAI vs. ASSESSING OFFICER EXEMPTION WARD 1(1), MUMBAI, MUMBAI

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ITA 9265/MUM/2025Status: DisposedITAT Mumbai26 May 2026AY 2017-184 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that for AY 2017-18, filing of Form 10B was directory, not mandatory, as the relevant amendment came into effect from AY 2018-19. Therefore, exemption could not be denied solely for delayed filing.

What were the facts?

The assessee, a charitable trust, claimed exemption under sections 11 & 12. The CPC denied this exemption during processing under section 143(1) due to delayed filing of Form 10B. The CIT(A) upheld this denial.

What were the issues?

Whether exemption under sections 11 & 12 can be denied for delayed filing of Form 10B when the statutory provision making it mandatory was not yet in force.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI SANDEEP GOSAIN & SHRI JAGADISH

For Appellant: Shri Nishit Gandhi
For Respondent: Shri Swapnil Choudhari (SR. AR.)
Hearing: 25.03.2026Pronounced: 26.05.2026

Per: SHRI JAGADISH, A.M.: 1. This appeal is directed against the order passed by the Ld. Addl./JCIT(A)-1, Gurugram, hereafter referred to as Ld. CIT(A), dated 31.07.2025 for A.Y. 2017-18 arising from the intimation passed u/s 143(1) of the Income Tax Act, 1961.

2.

The assessee has raised various grounds challenging the denial of exemption u/s 11 & 12 of the Act on account of delayed filing of Form No.10B and consequent adjustment made while processing the return u/s 143(1) of the Act.

3.

Brief facts of the case are that the assessee is a charitable trust registered u/s 12A/12AA of the Act. The assessee filed return of income for the year under consideration declaring Nil income after

ITA No.9265/M/2025 Bhikkhu Sanghas United Buddhist Mission claiming exemption u/s 11 & 12 of the Act. While processing the return u/s 143(1), CPC denied exemption claimed u/s 11 & 12 on the ground that Form No.10B was not filed along with return of income and consequently assessed total income at Rs.10531681/-.

4.

Aggrieved, assessee carried the matter before the Ld. CIT(A). It was submitted before the Ld. CIT(A) that the assessee had subsequently filed Form No.10B on 30.03.2019 and the same was available on record. However, the Ld. CIT(A) upheld the action of CPC/AO holding that exemption u/s 11 & 12 was not allowable as Form No.10B was not filed within prescribed time and the assessee had also not obtained condonation of delay from the competent authority.

5.

Before us, the Ld. AR submitted that for A.Y. 2017-18, filing of Form No.10B was directory in nature and not mandatory. He submitted that Form No.10B was filed on 30.03.2019 and the same was available before the Ld. CIT(A). The Ld. AR further relied upon the decision of ITAT Ahmedabad Bench in ITA No.1566/Ahd/2025 dated 11.12.2025 wherein under identical facts it was held that exemption u/s 11 & 12 cannot be denied merely on account of delayed filing of Form No.10B .

6.

On the other hand, the Ld. DR relied upon the orders of the lower authorities.

7.

We have heard rival submissions and perused the material available on record. It is an undisputed fact that the assessee is registered u/s 12A/12AA of the Act and is otherwise eligible for claiming exemption u/s 11 & 12 of the Act. It is also not in dispute that Form No.10B was filed by the assessee on 30.03.2019 and the same was available before the Ld. CIT(A). The exemption has been denied solely for the reason that Form No.10B was not filed along with return of income.

ITA No.9265/M/2025 Bhikkhu Sanghas United Buddhist Mission 8. We find that clause (ba) to section 12A(1) was inserted by the Finance Act, 2017 w.e.f. 01.04.2018 providing that the person in receipt of income shall furnish return of income for the previous year in accordance with the provisions of section 139(4A) within the time allowed u/s 139(1) as one of the conditions for applicability of section 11 & 12. Thus, the said amendment came into operation from A.Y. 2018-19 onwards. For the year under consideration i.e. A.Y. 2017-18, the said condition was not on the statute book. Therefore, during the year under consideration, filing of audit report in Form No.10B was directory in nature and substantive exemption otherwise available to the assessee could not have been denied merely on account of delay in filing the same.

9.

We further find that the coordinate bench of ITAT Ahmedabad in ITA No.1566/Ahd/2025 dated 11.12.2025 under identical facts has held that exemption u/s 11 & 12 cannot be denied merely on account of delayed filing of Form No.10B.

10.

Respectfully following the aforesaid decision of the coordinate bench, we set aside the order of the Ld. CIT(A) and direct the AO to allow exemption claimed u/s 11 & 12 of the Act.

11.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 26/05/2026.

Sd/- Sd/- (SANDEEP GOSAIN) (JAGADISH) Judicial Member Accountant Member

Mumbai, Dated: 26/05/2026 Ashwani Rao Sr. Private Secretary

ITA No.9265/M/2025 Bhikkhu Sanghas United Buddhist Mission

Copy of the order forwarded to: 1. Appellant 2. Respondent 3. The CIT 4. The CIT (Appeals) 5. The DR, I.T.A.T. By order

(Assistant Registrar) ITAT, Mumbai

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