Case Law Details
Shree Swami Samarth Seva Kendra Vs ITO (ITAT Mumbai)
Introduction: The case of Shree Swami Samarth Seva Kendra vs ITO, adjudicated by ITAT Mumbai, revolves around the denial of Section 11(2) benefits due to the alleged non-compliance with Form 10. The appellant challenges the exparte dismissal of the appeal by the CIT(A) and seeks justice based on principles of equity and natural justice.
Detailed Analysis: The assessee, a trust registered under section 12A, faced scrutiny as the AO disallowed the claimed exemption under Section 11(2) of the Income Tax Act. The crux of the matter lies in the untimely filing of Form No.10, a necessary document for accumulating income under Section 11(2). The AO asserted that filing beyond the due date under Section 139(1) rendered the claim invalid.
The appellant’s appeal before the Ld. CIT(A) faced dismissal, further fueling the controversy. The central question emerges: Does the filing of audit report in Form 10 during assessment proceedings suffice as compliance under the Act to extend Section 11(2) benefits?
Referencing precedents like Nagpur Hotel Owners’ Association (2001) and Bochasanwasi Shri Akshar Purshottam Public Charitable Trust (2019), the ITAT Mumbai concludes that filing Form 10 during assessment, even if post the original due date, is a valid compliance. The decision overrules the AO and CIT(A)’s stance, directing the AO to grant Section 11(2) benefits subject to verification.
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