ITAT Guwahati Judgments — May 2025

The Tribunal set aside the order of the Ld. CIT(A) and restored the appeal to him for fresh adjudication. This was to provide the assessee an adequate opportunity to explain his claim of exemption under Section 10(26) of the Act before the CIT(A) and the AO. All grounds of appeal were allowed for statistical purposes.

The Tribunal noted that the CIT(A) did not admit the appeal for non-payment of advance tax as per section 149(4)(b) and that the AO completed assessment under section 144 due to the assessee's non-participation. Observing that the assessee belongs to a Scheduled Tribe in Meghalaya and her income might be exempt under section 10(26), the Tribunal, with no objection from the DR, set aside the orders of the AO and CIT(A). The case was remanded to the AO to grant the assessee a fresh opportunity to substantiate her claims for exemption under section 10(26).

The Tribunal observed that Form 10B was filed on 01/10/2022 and the return on 07/11/2022, with the audit report uploaded on 01/10/2022, acknowledging a technical delay. Relying on precedents like Sarvodaya Charitable Trust (Gujarat High Court), the Tribunal held that the requirement to file Form 10B is directory and not mandatory, and substantial compliance is sufficient. The Tribunal condoned the delay in filing Form 10B and directed the Assessing Officer to allow the exemption claimed under section 11 of the Act.