Puran Chand Arora Charitable Trust Vs ITO (ITAT Delhi)
ITAT Delhi held that rejection of claim of exemption under section 11 of the Income Tax Act for mere non-fling of Form 10B is not justifiable since filing of Form 10B is directory in nature and the same cannot be reason to deny benefit.
Facts- The assessee filed its return of income for Assessment Year 2016-17on 07.2016. Due to non-filing of Form 10B along with return of income, the claim of the assessee in proceedings u/s 143(1) of Income-tax Act, 1961 for the claim of exemption u/s 11 of the Act was rejected and the receipts declared by the assessee of Rs.15,69,680/- brought to tax and no other deductions were allowed.
CIT(A) rejected the plea and sustained the addition. Being aggrieved, the present appeal is filed.
Conclusion- Hon’ble Apex Court in the case of CIT vs. G Knitting Industries (P.) Ltd. has held even though Form 10CCB was not filed along with the return of income but when the same was filed before the final order of assessment was made, assessee was entitled to claim deduction.
Held that in the present case are exactly similar and the filing of Form 10B is directory to facilitate the assessment and not mandatory. The assessee is running charitable trust and carried on charitable activities over the years, mere non-filing of Form 10B which is directory in nature cannot be the reason to deny the benefit extended by the statute, therefore, we are inclined to allow the claim of the assessee.
