Bhavnagar Dashashrimali Meshree Vanik Gnati Vs ADIT (ITAT Ahmedabad)
The ITAT Ahmedabad addressed an appeal by Bhavnagar Dashashrimali Meshree Vanik Gnati against the rejection of Section 11 exemption due to a delayed submission of Form 10B for Assessment Year 2019-20. The Revenue authorities disallowed the exemption, citing non-compliance with the mandatory requirement to file the audit report alongside the income tax return. The Assessee argued that this delay was procedural, not substantive, and that the accounts were audited before filing the return, evidenced by the unique document identification number (UDIN) for Form 10B.
Relying on the Gujarat High Court’s judgment in the case of Association of Indian Panelboard Manufacturer Vs. Deputy Commissioner of Income-tax, the Tribunal emphasized that the filing of Form 10B is procedural. The Hon’ble High Court had ruled that exemption under Sections 11(1) and 11(2) could not be denied solely because Form 10B was filed after submitting the return of income. In this case, the form was available to the assessing officer before the appellate proceedings concluded, and thus, the procedural lapse should not override the substantive compliance. Consequently, the ITAT granted the Assessee the benefits under Section 11 of the Income Tax Act, aligning with principles of fairness and natural justice.
