Guru Singh Sabha Vs ITO (Exemption) (ITAT Dehradun)
Income Tax Appellate Tribunal (ITAT), Dehradun Bench, has delivered a significant ruling in the case of Guru Singh Sabha versus the Income Tax Officer (Exemption), concerning the eligibility for tax exemption under Section 11 of the Income-tax Act, 1961. The tribunal’s decision, pronounced on April 23, 2025, effectively allows the assessee, Guru Singh Sabha, to claim the exemption despite the delayed filing of its tax audit report in Form 10B. This judgment has implications for charitable and religious trusts across the country, reiterating the principle that procedural compliance, while important, may not always be strictly mandatory to the extent of denying substantive benefits.
The case involved twin appeals filed by Guru Singh Sabha for the assessment years 2020-21 and 2021-22. These appeals challenged the orders issued by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (CIT(A)/NFAC), Delhi, both dated August 21, 2024. The core of the dispute stemmed from proceedings initiated under Section 143(1) of the Act, where the lower authorities had denied the assessee the benefit of Section 11 exemption. The primary reason cited for this denial was the assessee’s failure to file the mandatory tax audit report in Form 10B on or before the due date for filing the return of income under Section 139(1) of the Act. This denial was subsequently upheld by the CIT(A)/NFAC in the appellate proceedings, prompting Guru Singh Sabha to approach the ITAT.
