INCOME TAX OFFICER, SHILLONG vs. THE LITTLE STARS TRUST, ASSAM

Facts

The assessee, a charitable trust running educational institutions, claimed exemption under section 11 for AY 2022-23. The CPC initially denied this exemption due to the non-filing of Audit Report in Form 10B within the prescribed due date under section 139(1) of the Act. However, the Addl/JCIT(A) allowed the assessee's appeal, finding that Form 10B was indeed submitted on 07.11.2022, which was within the extended due date.

Held

The Income Tax Appellate Tribunal upheld the decision of the Addl/JCIT(A), confirming that the assessee had filed the Audit Report in Form 10B within the extended due date as per section 139(1) of the Act. The Tribunal found no infirmity in the Addl/JCIT(A)'s order allowing the exemption under section 11 and therefore dismissed the Revenue's appeal.

Key Issues

Whether the Addl/JCIT(A) was justified in allowing exemption under section 11 to a charitable trust when Form 10B was filed within the extended due date as per section 139(1).