AAI SHREE KHODIYAR MANDIR TRUST KACHHOLI,NA vs. ARIVS.JAO ITO, EXEMPTION WARD, SURAT
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Income Tax Appellate Tribunal, SURAT BENCH, SURAT
Before: DR. B.R.R. KUMAR, VICE-MS SUCHITRA RAGHUNATH KAMBLE
IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER I.T.A. No. 826/SRT/2025 (Assessment Year: 2022-23) Aai Shree Khodiyar Mandir ADIT, CPC, Vs. Trust Kachholi, Bengaluru Zhaveri Streeet Gangeshwar Jurisdiction AO: Mandir, Gandevi, Navsari – ITO, 396370, Exemption Ward, Gujarat Surat [PAN: AAHTA0625L] (Appellant) .. (Respondent) Appellant by: Shri Sapnesh Sheth, Advocate Respondent by: Shri Ajay Uke, Sr. DR Date of Hearing 22.01.2026 Date of Pronouncement 30.01.2026
O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT: This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter referred to as “Ld. CIT(A)”] dated 16.07.2025, under section 250 of the Income-tax Act, 1961 [in short “the Act”] for the Assessment Year 2022-23.
We have heard both the parties and perused the material on record. In this case, the assessee filed its return of income on 22.09.2022 along with ITR-7 within due date. The Central Processing Centre (in short, CPC) passed under section 143(1) of the Act on 31.03.2023. The audit report in Form 10B was uploaded on 22.09.2022 and subsequently approved on 01.05.2023. The delay occurred only in electronic approval of the said audit report. 3. The purpose of section 12A is to ensure that the accounts of the trust are duly audited and the audit report is available to the Assessing Officer. In the present case, this
ITA No.826/Srt/2025 Asst. Year: 2022-23 - 2– condition stands satisfied, as the audit report was already on record at the time of processing of return. It is well settled law that procedural or technical lapses should not defeat substantive rights, particularly in the case of charitable institutions. Denial of exemption under sections 11 and 12 merely on account of delayed approval of Form 10B is not justified. In view of the above facts and position, it is evident that the audit report was duly furnished within the prescribed time and the delay in electronic approval was purely technical and unintentional. No reasonable cause exists to deny the assessee the benefit of exemption under sections 11 and 12 of the Act. On going to the record, we find that the disallowance of exemption made while issuing intimation under section 143(1) of the Act is unsustainable in law. The assessee is entitled to the claimed exemption and the addition made by CPC deserves to be deleted.
In the result, the appeal of the assessee is allowed.
The order is pronounced in the open Court on 30.01.2026.
Sd/- Sd/-
(SUCHITRA R. KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Surat; Dated 30.01.2026 **SAMANTA आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��थ� / The Respondent. 2. संबंिधत आयकर आयु� / Concerned CIT 3. 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण,/ DR, ITAT, Surat 6. गाड� फाईल / Guard file.
BY ORDER, TRUE COPY
Asstt. Registrar, Surat
