SWEEKAR,NAGPUR vs. ITO WARD 1, EXEMP, NAGPUR

ITA 530/NAG/2026Status: DisposedITAT Nagpur14 October 2026AY 2019-2010 pages
AI SummaryAllowed

What were the facts?

The assessee, Sweekar, a charitable trust registered under Section 12A, filed its return of income for Assessment Year 2019-20 on 31.10.2019, claiming exemption of Rs. 15,38,925/- under Section 11. The audit report in Form 10B was also e-filed on the same date. The return was processed under Section 143(1), and exemption was denied because Form 10B was not filed one month prior to the due date of filing the return. The assessee's rectification application under Section 154 was rejected. The CIT(A) confirmed the denial of exemption. The assessee appealed to the ITAT against the CIT(A)'s order for AY 2019-20 and AY 2020-21. The dispute concerns the denial of exemption under Section 11 due to the delayed filing of Form 10B.

What did the Tribunal hold?

The Tribunal held that the denial of exemption under Section 11 of the Income Tax Act, 1961, was not justified. The Tribunal noted that the issue revolved around the delay in filing Form 10B. Following the ratio of various judicial precedents, including decisions of the Gujarat High Court in cases like Commissioner of Income Tax (Exemption) vs. Laxmanarayan Dev Shrishan Seva Khendra and Parul Mahila Pragati Mandal vs. Income-tax Officer (Exemption), the Tribunal reiterated that the requirement of filing Form 10B is a procedural requirement and not a mandatory condition for claiming exemption. As long as the requisite form is filed and made available during the assessment proceedings, mere delay in filing it would not adversely affect the assessee's right to claim exemption. In this case, Form 10B was filed on 31.10.2019 and was available before the processing of the return under Section 143(1) on 11.05.2020. Therefore, the denial of exemption solely on account of the delay in filing Form 10B was set aside. The Assessing Officer was directed to grant the benefit of exemption under Section 11. The appeals for both AY 2019-20 and AY 2020-21 were allowed.

What were the issues?

1. Whether the denial of exemption under Section 11 of the Income Tax Act, 1961, is justified for the Assessment Year 2019-20, when the audit report in Form 10B was filed on the due date of filing the return of income, but not one month prior to it, and was available before the processing of the return under Section 143(1)? Assessee's Contention: The assessee argued that the CIT(A) erred in sustaining the denial of exemption. The Form 10B was e-filed on 31.10.2019, well before the processing of the return under Section 143(1). The delay in filing Form 10B is a procedural lapse and should not disentitle the assessee from claiming exemption under Section 11, especially when the form was available during assessment proceedings. The assessee relied on various judicial decisions, including those from the Gujarat High Court. Revenue's Contention: The Revenue supported the order of the CIT(A).

Which sections of the Income-tax Act were involved?

Section 11,Section 12A,Section 139(1),Section 143(1),Section 154,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH :: NAGPUR

Before: SHRI PAVAN KUMAR GADALE

Hearing: 09.10.2026Pronounced: 14.10.2026

These two appeals are filed by the assessee are against the separate orders of ADDL/JCIT(A)-3, Ahmadabad both dated 11.03.2026 passed u/sec 250 of the Income Tax Act, 1961 (for short, “Act”) which are arising out of different rectification orders dated 20.01.2025 & 08.01.2025 passed u/sec.154 of the Act for the A.Ys. 2019-20 & 2020-21. The assessee has raised the grounds of appeal challenging the order of the JCIT (A) sustaining the denial of claim of exemption u/sec. 11 for delay in filing Form 10B by the Assessing Officer.

2.

Since the issues involved in these two appeals are identical and inter-linked, for the sa

The order continues below.

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