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Facts
The assessee, Orissa Evangelistic Trust Association, filed its return of income on 28.11.2023. The due date for filing Form 10B was 31.10.2023. The assessee filed the audited report in Form 10B along with its return, but the exemption provided under sections 11 and 12 was denied.
Held
The Tribunal held that filing Form 10B one month prior to the due date of filing the return of income is not a mandatory requirement for claiming exemption under sections 11 and 12 of the Act. The assessee is entitled to claim exemption even if the report is filed at a later stage.
Key Issues
Whether denial of exemption under sections 11 and 12 of the Act is justified solely on the ground of delayed filing of Form 10B.
Sections Cited
11, 12, 119(2)(b), 143(1)
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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/250/2024-25/1074154311(1) dated 07.03.2025 for A.Y. 2023-24.
Shri SK Sarangi represented on behalf of the assessee and Shri Nishanth Rao P represented on behalf of the Revenue.
It was submitted by the ld. AR that the assessee had filed its return income on 28.11.2023, which was extended period provided for filing the return. It was the submission that the due date of filing form no.10B was 31.10.2023, being one month prior to the due date for filing of return. It was the submission that the assessee filed the audited report under form 10B along with return. It was the submission that the intimation to exemption provided u/s 11 and 12 had been denied. It “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.
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.
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 the case Sarvodaya Charitable Trust -vs. ITO (Exemption) reported in (2021) 125 taxmann.com 75 and Hon'ble Jurisdictional High Court in the case of CIT-vs.- Rai Bahadur Bissesswarlal Motilal Malwasie Trust reported in (1992) 195 ITR 825, wherein it was categorically held that filing of Form 10B before one month from the due date of filing of the return of income is not mandatory requirement for the purpose of claiming exemption under sections 11 & 12 of the Act and even if filed at later stage, the assessee is entitled to claim exemption under sections 11 & 12. The facts of the present case on hand are similar to facts of the above cited case laws, therefore, I am of the view that the assessee-Trust is entitled to claim exemption under section 11 of the Act. Therefore, I direct the CPC/Assessing Officer to delete the adjustment made by the CPC. Hence, the grounds raised by the assessee are allowed.
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.