Kinkini Vs ITO (ITAT Jaipur)
Delayed Form 10BB Is Only Procedural: ITAT Jaipur Allows s.11 Exemption Despite Late Filing
Jaipur ITAT ‘SMC’ Bench, in Kinkini vs. ITO (ITA No.1185/JPR/2025, AY 2023-24, order dated 24.12.2025), allowed the assessee’s appeal and held that exemption u/s 11 cannot be denied merely due to delayed filing of Form 10BB, when the audit report was available on record before issuance of intimation u/s 143(1).
The assessee, a charitable trust/AOP, filed its return claiming full exemption u/s 11. However, Form 10BB (audit report)—though filed on 31.03.2024—was beyond the prescribed time. The CPC, while processing the return u/s 143(1)(a), denied exemption and assessed income at ₹18.49 lakh, which was confirmed by the CIT(A) on the ground that neither AO nor CIT(A) had power to condone the delay.
Reversing the lower authorities, the Tribunal held that filing of Form 10BB is a procedural requirement and not a substantive condition for claiming exemption u/s 11. Once the audit report is filed and available before processing/assessment, the statutory requirement stands substantially complied with.
The ITAT relied heavily on binding precedents of the Gujarat High Court in Laxmanarayan Dev Shrishan Seva Khendra (2024), Parul Mahila Pragati Mandal (2025) and Association of Indian Panel Board Manufacturers, and followed consistent ITAT rulings holding that procedural lapses cannot defeat substantive exemption.
Since Form 10BB was on record prior to issuance of intimation u/s 143(1), the Tribunal held that denial of exemption u/s 11 was unsustainable, and directed that the exemption be granted in full. The appeal was allowed
FULL TEXT OF THE ORDER OF ITAT JAIPUR
