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Facts
The assessee, Hare Krishna Movement Puri, faced denial of exemption under sections 11 and 12 of the Income Tax Act for the AY 2017-18 due to the belated filing of Form 10B. The assessee argued that the delay was a technical glitch and the form was available before the Assessing Officer (AO) during the assessment.
Held
The Tribunal condoned the delay in filing Form 10B, relying on a precedent from a coordinate bench and a P&H High Court decision which held that the audit report under section 12A(1)(b) could be filed at the appellate stage and such delay was a 'venial breach'. The matter was restored to the file of the AO for re-computation of income after considering the belatedly filed Form 10B.
Key Issues
Whether the belated filing of Form 10B, required for claiming exemption under sections 11 and 12 of the Income Tax Act, can be condoned by the Tribunal.
Sections Cited
11, 12, 12A(1)(b)
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
(नििाारण वर्ा / Assessment Year : 2017-18) Hare Krishna Movement Puri Vs ITO (Exemption), Bhubaneswar M.K. Nanda & CO. Flat 1B, Kusum Residency Plot No:- 66, Saheed Nagar, Bhubaneswar, Khorda-751007 PAN No. : AAATH 7636 K (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Natabar Panda, AR राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई की तारीख / Date of Hearing : 05/12/2025 घोषणा की तारीख/Date of Pronouncement : 05/12/2025 आदेश / O R D E R Per Bench : This is an Appeal filed by the assessee against the order of Ld.ADDL/JCIT(A), Faridabad dated 31.07.2025 for the assessment year 2017-18.
It was submitted by the Ld.AR that Form 10B was filed belatedly. It was submission that the said form 10B was available before the AO when the assessment was completed. It was submission that because the form 10B was filed belatedly the exemption of u/s.11 & 12 of the Act had been denied to the assessee. It was submission that the filing of the form 10B was only a technical glitch. It was submission that the delay may be condoned and issue may be restored to the file of the AO after condoning the delay, so that the assessee may be granted the benefit of the exemption u/s. 11& 12 of the Act. He placed reliance on the decision of the coordinate bench of this tribunal in the case of Jeevan Kalyan Sadhana Kendra in dated 02/03/2023 wherein in paras 6 & 7, the coordinate bench of this tribunal has held as follows:- 6. We have considered the rival submissions. A perusal of the decision of the Hon'ble P&H High Court in the case of Shahzedanand Charity Trust(supra) clearly shows that the Hon'ble P&H High Court has categorically held that the audit report u/s.12A(1)(b) of the Act can be filed even at the appellate stage. Thus, clearly, the Hon'ble P&H High Court has held that the filing of the audit report alongwith the return as per provisions of section 12A(1)(b) of the Act is not mandatory. As we are faced with a decision of the Hon'ble High Court on the issue, the decision of the Co- ordinate Bench of this Tribunal would not hold value of precedence. Thus, clearly, it is noticed that the audit has been done within time in the case of the assessee and it is only the audit report which has not been filed within the time prescribed. This is only a venial breach of the provisions. This being so, as also considering the fact that CBDT in its Instruction No.1/1148(supra) has given the powers to the Assessing Officer to condone the delay in filing of the audit report, we are of the view that the impugned assessee should not be denied the benefit of deduction u/s.11 & 12 of the Act on account of the said venial breach in respect of the delay in filing of the audit report. Consequently, the delay in filing of the audit report in Form 10B is condoned and the Assessing Officer is directed to consider the same when computing the income of the assessee.
In the result, appeal of the assessee stands allowed.
In reply, the Ld.Sr.DR submitted that the assessee should not be granted the benefit, in sofaras there is a delay in filing the form 10B. He Vehemently supported the orders of the AO and Ld.CIT(A).
We have considered the rival submissions. As it is noticed that the issue is squarely covered by the decision of this coordinate bench of this tribunal in the case of Jeevan Kalyan Sadhana Kendra, referred to supra, respectfully following the decision of the coordinate bench of this tribunal, the delay in filing of 10B is condoned and the AO is directed to consider the same when computing the total income of the assessee. For this purpose,