Rajlaxmi Charitable Trust Vs ITO (ITAT Delhi)
Belated E-Filing of Form 10 No Bar to Section 11(2) Relief: ITAT Delhi Grants Exemption to Charitable Trust
The Delhi ITAT (SMC), in Rajlaxmi Charitable Trust v. ITO (Exemption) (ITA No. 7582/Del/2025, AY 2016-17; order dated 24.12.2025), has allowed the Assessee-trust’s appeal and held that delay in e-filing Form 10 cannot defeat exemption u/s 11(2) when the form was otherwise filed before completion of assessment.
The Assessee, a registered charitable trust, was denied accumulation benefit u/s 11(2) solely on the ground that Form 10 was e-filed belatedly. The Tribunal noted that the Assessee had physically filed Form 10 on 26.07.2016, much before filing the return u/s 139(1) on 11.05.2017, and even the subsequent e-filing on 18.12.2018 was prior to the assessment order dated 19.12.2018.
Rejecting the Revenue’s contention that electronic filing within the prescribed time is mandatory, the ITAT relied on settled judicial precedents including CIT v. Xavier Kelvani Mandal Pvt. Ltd. and CIT v. Gujarat Oil & Allied Industries, holding that procedural requirements relating to Form 10 are directory and not mandatory. Since the Assessing Officer had the requisite information before completion of assessment, denial of exemption was unjustified.
Accordingly, the Tribunal directed the AO to grant exemption u/s 11(2) and recompute income afresh, allowing the appeal in full.
FULL TEXT OF THE ORDER OF ITAT DELHI
This assessee’s appeal ITA no. 7582/Del/2025 for assessment year 2016-17 arises against CIT(A)/JCIT(A)-1, Chennai’s order dated 12.09.2025 (DIN & Order No. ITBA/APL/S/250/2025-26/1080680562(1), in proceedings u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
