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Facts
The assessee filed its return of income for AY 2018-19 along with the audit report in Form 10B. The due date for filing Form 10B was September 30, 2018, while the return was filed on October 30, 2018. The exemption under sections 11 and 12 was denied due to the delayed filing of Form 10B.
Held
The Tribunal held that filing Form 10B one month before the due date of the return is not a mandatory requirement for claiming exemption under sections 11 and 12. Even if filed at a later stage, the assessee is entitled to claim exemption. The intimation issued under section 143(1) of the Act stands quashed.
Key Issues
Whether the assessee is entitled to claim exemption under sections 11 and 12 of the Income Tax Act, 1961, when the audit report in Form 10B was filed after the due date but along with the return of income.
Sections Cited
11, 12, 119(2)(b), 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “CUTTACK” BENCH, CUTTACK
O R D E R PER PENCH:
This is an appeal filed by the assessee against the order of the ld. Commissioner of Income-tax (Appeals) [in short, the ld. CIT (A)] in appeal no. ITBA/APL/S/250/2023-24/1063800855(1) dated 31.03.2024 for A.Y. 2018-19.
Shri KG Jena represented on behalf of the assessee and Shri Ashim Kumar Chakraborty represented on behalf of the Revenue.
The appeal of the assessee is time barred by 185 days. Considering the facts and circumstances of the case, we find that there is plausible reason to condone the delay and the delay of filing the appeal is hereby condoned.
5. I have heard both the sides. It was the submission of the ld. Counsel for the assessee that the tax audit report was filed much prior to the date of passing of the order. He also relied on the decision of the Hon'ble High Court of Gujrat in the case of Sarvodaya Charitable Trust -vs.- ITO (Exemption) reported in (2021) 125 taxmann.com 75, wherein it was held that benefit of exemption should not be denied merely on account of delay in filing of the audit report". He, therefore, pleaded to set aside the orders passed by the lower authorities.
6. On the other hand, Id. Departmental Representative submits that the assessee ought to have filed the condonation petition before the revenue authorities under section 119(2)(b) of the Act as directed by the CBDT vide Circular No 16/2024 dated 18.11.2024. The assessee has a remedy to approach the authorities under section 119(2) of the Act to condone the delay in filing Form 10BB, but the assessee failed to do so. Therefore, the Id. Commissioner (Appeals) has rightly dismissed the appeal filed by the assessee. Therefore, he pleaded to uphold the orders passed by the revenue authorities.
7. I have perused the material available on record as well as the written submission filed by the assessee. It is an undisputed fact that the assessee-Trust was registered under section 12A of the Act and the registration is still in existence. It is also an admitted fact that the accounts of the assessee-Trust have audited by a Chartered Accountant and the audit report in Form 10B was obtained by the assessee. However, the only lacunae in the present case is that Form 10B was not filed one month prior to the date of filing of the return of income for the relevant assessment year. It is also an admitted fact that at the time of filing of the return of income, the audit report under Form 10B was uploaded along with the return of income. It is also an admitted fact that at the time of processing the return of income under section 143(1) of the Act, the audit report by way of Form 10 was very much available before the CPC/AO. The Id. Counsel for the assessee has heavily relied on the decisions of the Hon'ble Gujarat High Court in
We have considered the rival submissions. As it is noticed in the decision of the co-ordinate bench of this Tribunal, which is followed the decision of Hon'ble Gujarat High Courtin case of Sarvodaya Charitable Trust -vs. ITO (Exemption) reported in (2021) 125 taxmann.com 75 (Guj), respectfully following the decision of the co-ordinate bench of this Tribunal and the decision of the Hon'ble Gujarat High Court (supra), the intimation issued u/s 143(1) of the Act stands quash.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 16.07.2025.