Om Charitable Chikitsa Samiti Vs Assessing Office (ITAT Agra)
Clerical Error in Section & Physical Filing of Form 10B should not deny Trust Exemption- ITAT Agra Restores Matter
Assessee, a society registered u/s 12AA by CIT, Gwalior & also approved u/s 10(23C)(vi) by CCIT, Bhopal, filed return on 06.11.2017 claiming exemption u/s 10(23C)(iiiad). AO, noting gross receipts of Rs. 5.64 crore, denied exemption u/s 10(23C)(iiiad) since limit under Rule 2BC is Rs. 1 crore. AO further held that exemption u/s 11 was also not available as Form 10B was not filed electronically with return, though he admitted that duly signed Form 10B dated 15.09.2017 had been filed physically during assessment. AO therefore assessed taxable income at Rs. 88.03 lakh. CIT(A) confirmed assessment.
Before Tribunal, it was contended that mention of s.10(23C)(iiiad) was a clerical mistake instead of correct s.10(23C)(vi), for which registration was duly available. It was urged that such clerical errors should be rectified by Revenue rather than denying claim. It was further pointed out that Form 10B had indeed been filed in physical form before due date & AO had noted the same, hence claim could not be denied merely on technical ground of e-filing.
Tribunal observed that both 12AA & 10(23C)(vi) registrations were undisputed & once correct provision is applied, Rule 2BC ceiling would not apply. It also held that procedural lapses like physical filing of Form 10B, especially when done before due date & accepted by AO, cannot defeat substantive exemption. Tribunal remarked that procedural law is meant to advance justice, not to frustrate legitimate claims.
