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Facts
The assessee, Indian Institute of Foreign Trade, was disallowed exemption u/s 11 of the Income Tax Act because the Audit Report in Form 10-B was filed after the due date. The CIT(A) upheld this disallowance. Subsequently, the CIT(E) condoned the delay in filing the Audit Report.
Held
The Tribunal noted that the CIT(E) had condoned the delay in filing the Audit Report. In light of this condonation, the Tribunal set aside the order of the CIT(A) and restored the matter to the AO.
Key Issues
Whether the delay in filing the Audit Report in Form 10B can be condoned by the CIT(E), and if so, whether the assessee is eligible for exemption u/s 11 of the Act.
Sections Cited
11, 12A(1)(b), 119(2)(b), 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘C’: NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & SHRI BRAJESH KUMAR SINGH,
This appeal by the Assessee is directed against the order of Commissioner of Income Tax (Appeal), ADDL/JCIT (A)-6, Mumbai, dated 16.06.2025 [hereinafter referred to as the ‘Ld. CIT(A)’] arising out of the assessment order dated 18.11.2024 ITA No.- 4944/Del/2025 Indian Ins�tute of Foreign Trade intimation under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 18.11.2024 pertaining to Assessment Year (A.Y.) 2023-24 passed by the AO, CPC, Bengaluru. .
At the outset, the Ld. AR submitted that the assessee was disallowed its claim for exemption u/s 11 of the Act on the ground that the assessee had filed the Auditor’s report in Form 10-B 01.11.2023 for which the due date was 31.10.2023. The Ld. AR further submitted that the Ld. CIT(A) dismissed the appeal of the assessee on the ground that it constituted violation of the provisions of section 12A(1)(b) of the Act. Further, the Ld. AR submitted that the Ld. CIT(E), Delhi vide his order u/s 119(2)(b) of the Act dated 18.12.2025 has condoned the aforesaid delay in filing of the said Audit Report and the assessee company has filed a petition before the Department for allowing the exemption u/s 11 of the Act, in view of the above condonation. In this regard, the Ld. AR submitted that the matter be remitted back to the file of the AO with suitable direction to him to verify the claim of the assessee in view of the above condonation by the Ld. CIT(E), Delhi.
The Ld. CIT(DR) did not object to the same.
We have heard both the parties and perused the material available on record. The Ld. CIT(E) vide his order dated 18.12.2025 u/s 119(2)(b) of the Act, has condoned the delay in filing the Audit Report in Form 10B u/s 119(2)(b) of the Act. The relevant extract of the said order is reproduced as under: 2
ITA No.- 4944/Del/2025 Indian Ins�tute of Foreign Trade “ Subject: Condonation for delay in filing Form 108 u/s 119(2)(b) - Approval Order Order for Condonation of delay u/s 119(2)(b) of the Income Tax Act in filing of Form 108 by the assessee for A.Y.2023-24 The applicant, Indian Institute of Foreign Trade, submitted an application for condonation of delay in filing Form 10B for A.Y 2023-24 on 03.02.2025. As per application, the assessee is registered u/s 12A of the Income Tax Act, 1961. The applicant filed its Audit report in Form 10B on 01.11.2023 beyond 01 days' delay as due date was on 31.10.2023. 2 In the present application, the assessee is seeking condonation of delay u/s 119(2)(b) of the Act in filing of Form 10B, by taking recourse to circular no. 16/2024 dated 18.11.2024 issued by the CBDT 3. In view of the circular no. 16/2024 dated 18.11.2024 issued by the CBDT in respect of condonation of delay under section 119(2) (b) of the Act in filing of Form 108 and taking into consideration the submission of the applicant, it is held that there was reasonable cause which prevented the applicant from filing the aforesaid Form 10B for A.Y 2023-24 within stipulated time. Accordingly, the delay in filing Form 10B for A.Y 2023-24 is hereby condoned 4 This order is only for the purpose of condonation of delay in filing Form10B of the Income Tax Act, 1961 for A.Y 2023-24. No interest will be allowed on the refund due to the assesse, if any, for the delay attributable to it.”
4.1 In view of the condonation of the delay in filing the Audit Report by the Ld. CIT(E), Delhi, we, set aside the order of the Ld. CIT(A) and the matter is restored to the AO and the AO is directed to examine the claim of the assessee for exemption u/s 11 of the Act, after considering the order dated 18.12.2025 of the Ld. CIT(A) condoning the delay of the assessee in filing of the Audit Report in Form 10B. Accordingly, the grounds of appeal of the assessee are allowed for statistical purposes.
ITA No.- 4944/Del/2025 Indian Ins�tute of Foreign Trade 5. In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Open Court on 29.01.2026
Sd/- Sd/- (CHALLA NAGENDRA PRASAD) (BRAJESH KUMAR SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29/01/2026. Pooja/-