Utkarsh Vs ITO (ITAT Delhi)
Assessee trust filed ROI on 25.07.2018 & uploaded Form 10B on 31.07.2018, which was still before the statutory due date 30.09.2018. CPC denied exemption u/s 11 on the technical ground that Form 10B was not filed “with” the return, & CIT(A) upheld the adjustment.
Tribunal noted that Form 10B was available with AO at the time of processing & consistent judicial view of various High Courts & Tribunals is that exemption cannot be denied when the audit report is furnished before due date. Tribunal therefore allowed exemption u/s 11. On the second issue, an inadvertent reporting error in Schedule-J (column-5) resulted in adjustment u/s 11(3) of ₹5,55,150. Tribunal held that CIT(A) erred in mechanically rejecting rectification u/s 154 despite specific request for correction. AO was directed to verify the factual error & grant appropriate relief. Appeal allowed in full.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This appeal by assessee is directed against the order of learned CIT(A)/National Faceless Appeal Centre, Delhi dated 29.08.2025 for assessment year (AY) 2018-19. The assessee has raised following grounds of appeal:
“1. On facts and circumstances of the case and in law, Ld. CIT(A) erred in confirming the disallowance of exemption t/s 11 of Rs.4.75,250/-, on ignoring the fact that the tax audit report (Form-IOB) had been filed within the time limit prescribed to file the return of income w/s. 139(4A) of the Act.
2. On facts and circumstances of the case and in law, Ld. CII(A) erred in confirming the Intimation u/s 143(1), on making the adjustments t/s 11(3) of Rs.5,55.150/-, though such receipts pertain to voluntary contribution received and applied during the year
3. The appellant hereby makes a fresh claim to allow the exemption us 11 in respect of voluntary contributions received and applied during the year of R3.5,55.150/-, since the appellant had fulfilled all conditions prescribed u/s 11 and 12 of the Act.”
2. Rival submissions of both the parties have been heard and record perused. The learned Authorized Representative (AR) of the assessee submits that due date for filing the return of income for Assessment Year (AY) 2018-19 was 30.09.2018, the assessee filed its return of income for on 25.07.2018. However, Form 10B was also uploaded on ITBA portal on 31.07.2018. The. The CPC Bangalore while processing return of income not allowed application of income under section 11 of the Act on the ground that Form 10B was uploaded after filing return of income. The assessee filed application under section 154, which was also dismissed in a mechanical manner by taking view that Form-B is required to be furnished with return of income. The action of the Assessing Officer/CPC was upheld by ld. CIT(A). The ld. AR of the assessee further submits that there are series of decisions of Hon’ble High Courts as well as by the various Benches of the Tribunal, wherein it has been held that when Form 10B was available during assessment, benefit of section 11 be allowed to the assessee.
