SHRI DATTATRAYA DE vs. THAN TRUST,PUNEVS.INCOME TAX OFFICER EXEMPTION WARD 1(1), NASHIK

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ITA 35/PUN/2026Status: DisposedITAT Pune19 May 2026AY 2022-233 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the delay in filing Form 10B is directory in nature and can be furnished even at the appellate stage. Following judicial precedents, the claim for exemption under Section 11 was allowed.

What were the facts?

The assessee, a charitable trust, filed its income tax return claiming exemption under Section 11. However, the exemption was disallowed due to the delayed filing of Form 10B. The assessee's rectification application was also rejected.

What were the issues?

Whether the delay in filing Form 10B by a charitable trust warrants disallowance of exemption under Section 11 of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 11,Section 12AB,Section 154,Section 250,Section 143(1)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE

Before: DR.MANISH BORAD

For Appellant: Smt. Deepa Khare
For Respondent: Shri Manish Sinha
Hearing: 30.04.2026Pronounced: 19.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.35/PUN/2026 Assessment Year : 2022-23 Shri Dattatraya Devsthan Trust, Vs. Income Tax Officer, 10 Aklapur, Exemption Ward-1(1), Aklapur B.O., Nashik Ahmednagar – 422 620 Maharashtra PAN : AAGTS9046L Appellant Respondent

Assessee by : Smt. Deepa Khare Revenue by : Shri Manish Sinha (through virtual) Date of hearing : 30.04.2026 Date of pronouncement : 19.05.2026 आदेश / ORDER The captioned appeal at the instance of assessee pertaining to A.Y. 2022-23 is directed against the order dated 19.12.2025 framed by Addl/JCIT(A) Kochi passed u/s.250 of the Income Tax Act, 1961 (in short ‘the Act’) arising out of Rectification Order dated 12.05.2023 passed u/s.154 of the Act.

2.

The only grievance of the assessee is that ld.CIT(A) Officer erred in not granting deduction u/s.11 of the Act for delay in submission of Form No.10B. She submitted that the Audit report dated 05.07.2022 on Form No.10B has been e-filed on 20.10.2022 along with income tax return filed on 20.10.2022. Referring to the plethora of decisions mentioned in the paper book she submitted that the issue has been decided in favour of the assessee where the

ITA No.35/PUN/2026 Shri Dattatraya Devsthan Trust

assessee(s) filed Form No.10B even during the course of First Appellate Proceedings.

3.

On the other hand, ld. DR while supporting the order of ld.CIT(A) opposed the contentions raised by ld. Counsel for the assessee.

4.

I have heard the rival contentions and perused the record placed before me. The short issue for my consideration is whether ld.CIT(A) was justified in not granting deduction u/s.11 of the Act for delay in filing of Audit Report on Form No.10B. In the instant appeal, assessee is a Charitable Trust formed with the object of providing Education, Medical relief to the poor, Preservation of Environment etc. Assessee is registered u/s.12AB of the Act. Assessee filed the return for A.Y. 2022-23 on 20.10.2022 declaring income of Rs.1,39,380/- after claiming exemption u/s.11 of the Act. Return has been processed u/s.143(1)(a) of the Act disallowing the exemption claimed by it for not filing the Audit Report on Form No.10B within the stipulated time. Assessee filed the Rectification application which was also rejected for the belated filing of Form No.10B. Admittedly, in the instant case, the due date for filing of Form 10B was 30.09.2022 and the same is filed on 20.10.2022.

5.

This issue is no longer res integra. It has been held by Hon’ble Courts including that of Hon’ble Gujarat High Court in the case of Sarvodaya Charitable Trust Vs. ITO reported in (2021) 133 taxmann.com 43 (Guj HC) that delay in filing of Form No.10B is directory in nature and the same can even

ITA No.35/PUN/2026 Shri Dattatraya Devsthan Trust

be furnished even at the appellate stage. Respectfully following the judicial precedent and also observing that assessee has finally furnished Audit Report on 20.10.2022 which is much prior to the culmination of the assessment proceedings, therefore, the claim of application of income at Rs.1,39,380/- u/s.11 of the Act stands allowed. Effective grounds of appeal raised by the assessee are allowed. 6. In the result, the appeal of the assessee is allowed. Order pronounced on this 19th day of May, 2026.

Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; दिन ांक / Dated : 19th May, 2026. Satish

Digitally signed by Satish Kumar Madishetty Satish Kumar Madishetty Date: 2026.05.20 12:15:47 +05'30' आदेश की प्रतिलिपि अग्रेपिि / Copy of the Order forwarded to : अपील र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent. 2. 3. The Pr. CIT concerned. विभ गीय प्रतितनधि, आयकर अपीलीय अधिकरण, “SMC” बेंच, 4. पुणे / DR, ITAT, “SMC” Bench, Pune. ग र्ड फ़ इल / Guard File. 5. आिेश नुस र / BY ORDER,

// True Copy // Assistant Registrar, आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune.

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