Darga Ehazrat Syedshah Khwajadas Chisti Unnayabi Perpetual Trust Vs ITO (ITAT Hyderabad)
In the case of Darga Ehazrat Syedshah Khwajadas Chisti Unnayabi Perpetual Trust vs. ITO, ITAT Hyderabad ruled that failure to file Form 10/10B within the prescribed deadline does not invalidate the claim for exemption under Section 11(2) of the Income Tax Act, 1961. The trust filed its Form 10B for the 2020-21 assessment year belatedly, which led to the denial of exemptions by the CPC during income processing under Section 143(1). The CIT(A) upheld the decision, citing procedural requirements. However, ITAT Hyderabad referenced precedents, including the Ramji Mandir Religious and Charitable Trust case, concluding that the filing of Form 10/10B is merely directory. As Form 10B was available before the intimation, denying the exemption was improper. The court allowed the appeal, instructing the AO to consider the form while processing the return.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
Aggrieved by the order dated 30/03/2024 passed by the learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of Darga Ehazrat Syedshah Khwajadas Chisti Unnayabi Perpetual Trust Vatpalli (“the assessee”) for the assessment year 2020-21, the assessee preferred this appeal.
2. Assessee is a Trust. It filed Form 10B for the assessment year 2020- 21 on 20/3/2021 and filed the return of income on 22/3/2021. While processing the return of income under section 143(1) of the Income Tax Act, 1961 (for short “the Act”), the benefit of section 11 and 12 of the Act was denied on the ground that Form 10B was not filed within the prescribed time limit.
