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Facts
A charitable trust, registered u/s 12AA, claimed exemption u/s 11 for AY 2016-17. The AO denied the exemption, assessing income at Rs. 46,45,404/-, on the ground that Form 10B was not filed with the return. The assessee contended Form 10B was filed but inadvertently unsigned, which the CIT(A) rejected, confirming the AO's order stating the audit report was not filed by the due date.
Held
The Tribunal observed that the appellant was not given an opportunity to rectify the defect of the inadvertently unsigned Form 10B. Consequently, the matter was remanded back to the Assessing Officer for a fresh decision after providing the appellant with a reasonable opportunity of being heard.
Key Issues
Whether exemption u/s 11 should be denied if Form 10B, though filed, was inadvertently not signed by the CA, and if the appellant should be given an opportunity to cure this defect.
Sections Cited
12AA, 11, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
Assessment Year: 2016-17 Viswakarma Dharmeeka Sevana Sangham .......... Appellant Kottappuram, Alangad P.O., Ernakulam [PAN: AAAAV8106H] vs. The Income Tax Officer(Exemption), Kochi .......... Respondent Assessee by: Shri K. Krishna, Advocate Revenue by: Ms. Neethu S. Sr. DR Date of Hearing: 27.11.2025 Date of Pronouncement: 28.11.2025 O R D E R This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-4, Mumbai [CIT(A)] dated 02.09.2025 for Assessment Year (AY) 2016-17.
Brief facts of the case are that the appellant is a charitable trust duly registered u/s. 12AA of the Income Tax Act, 1961 (the Act). The return of income for AY 2016-17 was filed on 20.12.2016 disclosing Nil income after claiming exemption u/s. 11 of the Act. Against the said return of income, the assessment was completed by the Income Tax Officer (Exemption) Kochi vide order dated 07.12.2018 passed u/s. 143(3) of the Act at total income of Rs. Viswakarma Dharmeeka Sevana Sangham 46,45,404/-. While doing so, the AO had denied exemption u/s. 11 on the ground that the appellant had not filed audit report in Form 10B of the Act along with the return of income.
Being aggrieved, an appeal was filed before the CIT(A) contending that Form 10B was filed. However, Form 10B was not signed by the Chartered Accountant inadvertently. However, the CIT(A) had confirmed the action of the AO by holding that the said audit report was not filed within the due date prescribed under Rule 12A(1)(b) of the Act.
Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.
The learned counsel for the assessee reiterated the submissions made before the learned CIT(A).
The learned Sr. DR opposed the above submissions and submits that the order passed by the CIT(A) is reasoned one, requires no interference.
I heard the rival contentions and perused the material available on record. The issue in the present appeal relates to whether the appellant society was entitled for exemption u/s. 11 of the Act. Undoubtedly, the appellant had filed Form 10B not signed by the Chartered Accountant. However, the material on record does not indicate that the appellant was given opportunity of curing this Viswakarma Dharmeeka Sevana Sangham defect. Therefore, I am of the considered opinion that the matter requires remand to the file of AO for de novo disposal in accordance with law after affording reasonable opportunity of hearing to the appellant.
In the result, the appeal filed by the assessee stands partly allowed for statistical purposes.
Order pronounced in the open court on 28th November, 2025.