Saraswati Devi Educational And Social Trust Vs CPC (ITAT Kolkata)
Delay in Filing Form 10B/10BB Held Technical, Not Fatal to Claim u/s 11/10(23C)- ITAT Kolkata Allows Exemption to Trust
Assessee, a registered charitable trust, filed appeals against orders of CIT(A) for A.Ys. 2020-21 & 2023-24, challenging denial of exemption u/s 11/10(23C) while processing returns u/s 143(1). CPC had disallowed exemption on the ground that the audit reports in Form 10B & 10BB were filed belatedly, i.e., after the due date prescribed u/s 139(1).
Assessee contended that CPC made adjustments u/s 143(1)(a) without providing prior intimation or opportunity as required by the proviso to that section. It was further argued that the delay in filing Form 10B/10BB was purely technical, & the exemption could not be denied when the audit report was already available on record at the time of processing.
Tribunal observed that both returns were duly filed-on 27.03.2021 for A.Y. 2020-21 & on 31.10.2023 for A.Y. 2023-24—along with the respective Forms 10B/10BB. AO/CPC denied exemption only on account of late filing, despite having access to the audit reports. Referring to judicial precedents, including Sarvodaya Charitable Trust v. ITO (2021) 125 taxmann.com 75 (Guj.), Tribunal held that exemption u/s 11 cannot be denied merely for delay in filing Form 10B when the substantive conditions of charitable activity are fulfilled & the report is available before completion of assessment. Such procedural lapse is curable & cannot justify denial of statutory exemption in an intimation u/s 143(1). Accordingly, ITAT quashed the intimations issued u/s 143(1) & directed that exemption u/s 11/10(23C) be granted.
