Church of Our Lady of Immaculate Conception Vs ITO (Exemption) (ITAT Mumbai)
Procedural Lapse Cannot Deny Section 11 Benefit – ITAT Mumbai Allows Exemption – Delay in Form 10B Filing Condoned for Church Trust-Natural Justice & Substance Over Form – Tribunal Grants Relief to Church Trust
Assessee, a trust registered under the Maharashtra Public Trust Act, 1969, running a church & carrying out charitable activities like food, education & medical aid, filed its return within the extended due date but submitted Form 10B belatedly by 29 days. CPC while processing return denied exemption u/s 11 & determined taxable income at Rs. 4.25 crore with demand of Rs. 2 crore. CIT(A) dismissed the appeals ex parte by passing a cryptic non-speaking order.
Before the Tribunal, Assessee argued that delay in filing Form 10B is only procedural & directory, not mandatory, relying on several High Court & Tribunal rulings, including Lokumal Dishinchand Charitable Trust, Snehasadan, National Solidarity Centre Seva Niketan, Nasik St. Xavier’s Society, Jan Seva Mandal, R.C. Church of St. Josephs, National Sodality Centre, St. Gregorios Education & Medical Trust, Bombay St. Xavier’s College Society, Mirae Asset Foundation, St. Thomas High School, Sha Hurgowan Anandji Desai Charities, Karnataka Sangha & Warkari Shikshan Sanstha. It was also pointed out that jurisdictional Bombay High Court in W.P.(L) No. 14461 of 2025 had condoned the delay of 29 days in filing Form 10B for AY 2023-24.
