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Facts
Gujarat Technological University, registered under Section 12AA, claimed exemption under Section 11 of the Income Tax Act. The exemption was denied by the CPC and upheld by the CIT(A) solely due to a delay in filing Form 10 and Form 10B.
Held
The Tribunal, relying on its own previous decisions and High Court judgments, held that the delay in filing Form 10 and Form 10B is a procedural lapse that can be condoned. It directed the Assessing Officer to condone the delay and grant the Section 11 exemption after verifying other substantive conditions.
Key Issues
Whether the delay in filing Form 10 and Form 10B, being a procedural lapse, should be condoned to allow exemption under Section 11 of the Income Tax Act.
Sections Cited
11, 12AA
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Income Tax Appellate Tribunal, “ C ” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Narendra Prasad Sinha
"ी संजय गग", "ाियक सद" एवं "ी नरे !साद िस"ा, लेखा सद
के सम%। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member आयकर अपील सं / Year : 2018-19 Gujarat Technological Deputy Commissioner of बनाम/ University Income Tax Circle-1 v/s. Nr.Vishwakarma Exemptions, Govt.Engg.College Ahmedabad – 380 015 Nr.Visar Three Roads Chandkheda Society Area SO Ahmedabad – 382 424 थायी लेखा सं./PAN: AAALG 1109 L (अपीलाथ'/ Appellant) (!( यथ'/ Respondent) Assessee by : Ms. Amrin Pathan, AR Revenue by : Shri Rignesh Das, CIT-DR सुनवाई की तारीख/Date of Hearing : 04/09/2025 घोषणा की तारीख /Date of Pronouncement: 18/09/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 28/04/2025 for Assessment Year (AY) 2018-19.
The assessee is a State Technical University established in the year-2007 under Gujarat Act No.20 of 2007. The assessee is registered under section 12AA of the Income Tax Act,1961 (in short “the Act”) with effect from Gujarat Technological University vs. Dy.CIT-1 Exemptions Asst. Year : 2018-19 2 01/04/2010 vide order dated 17/06/2010. The sole issued involved in this appeal is relating to denial of deduction u/s.11 of the Act to the assessee on account of delay in filing of Form 10 & Form 10B.
At the outset, the Ld. Counsel for the assessee has submitted that the issue is squarely covered in favour of assessee by the decision of the Tribunal in relation to earlier assessment years on the same issue and on identical facts. The Ld. Counsel, in this respect, has relied upon the decision of the Co- ordinate Bench of the Tribunal in assessee’s own case for AY 2019-20 passed in vide order dated 19/08/2025. The relevant part of the order of the Co-ordinate Bench of the Tribunal, is reproduced hereunder:
“14 . We have carefully considered the rival submissions, perused the material placed on record, and duly examined the orders of the lower authorities. The undisputed facts are that the assessee, a State Technical University registered under section 12AA of the Act, claimed exemption under section 11 of the Act in its return of income for the year under consideration. The only reason for denial of the exemption by the CPC, and for upholding such denial by the learned CIT(A), was the delay in furnishing Form No. 10 and Form No. 108 within the prescribed time limit. There is no finding by the CIT(A) that any of the substantive conditions for claiming exemption under section 11 have not been fulfilled.
It is also an admitted position that the assessee has subsequently filed the prescribed forms, and that its registration under section 12AA and the genuineness of its activities have not been doubted. The delay has been explained by the assessee with cogent evidence, including a legal notice issued to its statutory auditor and the affidavit of the said auditor accepting responsibility for the procedural lapse. The explanation is bona fide and supported by circumstances such as portal-related difficulties and professional negligence.
We find that the Co-ordinate Bench in the assessee's own case for A.Y. 2017-18 in order dated 22.04.2025, after considering binding decisions of the Hon'ble Gujarat High Court, held that delay in filing Form No. 10B is only a procedural lapse which causes no prejudice to the Revenue and cannot be the sole ground for denying exemption under section 11. In the absence of any change in facts or law, we are bound by the said decision for the present assessment year. Gujarat Technological University vs. Dy.CIT-1 Exemptions Asst. Year : 2018-19 3 17. The Hon'ble Gujarat High Court in Brahmchari Wadi Trust D. CIT(E) [2025] 173 taxmann.com 54 (Guj.), Shri Parshwanath Bhakti Vihar Jain Trust v. CIT(E) [2024] 166 taxmann.com 732 (Guj.) and Sarvodaya Charitable Trust v. ITO (Exemption) [2021] 125 taxmann.com 75 (Guj.) has consistently held that when the substantive conditions for exemption are satisfied, the benefit cannot be denied merely for delay in filing the prescribed forms, which is only a procedural requirement. The Co-ordinate Benches in Vardhman Stanakvasi Jain Shravak Trust [2025] 172 taxmann.com 165 (Ahd.-Trib.) and Shiksha Foundation [2024] 164 taxmann.com 757 (Ahd.-Trib.) have also taken the same view, holding that such procedural defects are curable and delay is condonable.
18 In view of the above, we hold that the delay in furnishing Form No. 10 and Form No. 10B in the present case deserves to be condoned in the interest of substantial justice. The orders of the CPC and the learned CIT(A), denying the exemption solely on account of such delay, cannot be sustained. We accordingly set aside the impugned order of the learned CIT(A) and direct the jurisdictional Assessing Officer to condone the delay in filing Form No. 10 and Form No. 10B, and thereafter to grant the exemption under section 11 of the Act as claimed by the assessee, subject to verification of the other statutory conditions, which, on the facts, are already satisfied.”
Respectfully following the above decision of the Tribunal, for the sake of consistency, the delay in filing of Form 10 & Form 10B is hereby condoned and the issue is restored to the file of the Assessing Officer (AO) to examine the claim of the assessee for deduction u/s.11 of the Act on merits and if the assessee is otherwise found eligible for the same, then the AO to grant the deduction accordingly.