PRAGATI URBAN AND RURAL DEVELOPMENT SEVA SOCIETY,GHATAPRABHA vs. INCOME TAX OFFICER (EXEMPTIONS)PANAJI, PANAJI GOA
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that filing of Form No. 10B is a procedural requirement and the benefit of exemption under section 11 should not be denied for a delay in furnishing the audit report. Following established precedents, the assessee is entitled to the exemption.
What were the facts?
The assessee, a charitable society registered under section 12A, filed its audit report in Form No. 10B two months after the due date. The Assessing Officer denied exemption under section 11 of the Income Tax Act due to this delay.
What were the issues?
Whether delay in filing the audit report in Form No. 10B can lead to denial of exemption under Section 11 of the Income Tax Act.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH, ‘DB’ PANAJI
Before: DR.MANISH BORAD & SHRI PAVAN KUMAR GADALE
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2014-15 is directed against the order dated 29.11.2025 framed by Addl/JCIT(A) Faridabad which is arising out of Rectification order dated 27.05.2024 passed u/s.154 of the Income Tax Act, 1961 (in short ‘the Act’).
The only issue for our consideration is that ld.CIT(A) erred in confirming the action of ld. Assessing Officer denying exemption u/s.11 of the Act delay in filing of Audit Report on Form No.10B.
At the outset, ld. Counsel for the assesee made reference to various decisions placed in the paper book from pages 10 to 52 submitted that the due date for filing of Audit Report (extended) was 30.11.2014 but the assessee even though Audit Report was obtained on 30.09.2014 the same was filed on 30.01.2015 and because of this delay benefit of exemption u/s.11 has been denied.
On the other hand, ld. DR supported the order of ld.CIT(A).
We have heard the rival contentions and perused the record placed before us. We note that the assessee is a charitable society registered u/s.12A of the Act vide order dated 30.03.2007. Return of income for A.Y. 2014-15 filed on 30.01.2015. Assessee was required to upload Form No.10B on or before the due date of filing the return, i.e. 30.11.2014 but the assessee even though obtained the Audit Report on 30.11.2014 but has been filed along with return of income on 30.01.2015. Admittedly, there is delay of two months in filing the Audit Report. We take note of judgment of Hon’ble Gujarat High Court in the case of CIT (Exemption) Anjana Foundation reported in 168 taxmann.com 462 (Gujarat) affirming the view taken by the Coordinate Bench, Tribunal in ITA No.695/Ahd/2023 order dated 07.02.2023 holding that filing of Form No.10B is a procedural requirement and benefit of section 11 should not be denied for delay in furnishing Form No.10B. Following the same ratio, this Tribunal in plethora of decisions held that exemption u/s.11 claimed by the assessee(s) deserves to be allowed. Thus,
assessee gets relief and effective grounds of appeal raised by the assessee are allowed.
In the result, the appeal of the assessee is allowed.
Order pronounced on this 29th day of June, 2026. (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER Panaji/Pune; दिन ांक / Dated : 29th June, 2026. Satish
Satish Kumar Madishetty आदेश की प्रतिलिपि अग्रेपिि / Copy of the Order forwarded to : अपील र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.
The Pr. CIT concerned. विभ गीय प्रतितनधि, आयकर अपीलीय अधिकरण, Panaji 4. ‘DB’ Bench / DR, ITAT, Panaji ‘DB’ Bench ग र्ड फ़ इल / Guard File. 5. आिेश नुस र / BY ORDER,
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