CIT Vs Gujarat Energy Development Agency (Gujarat High Court)
The Gujarat High Court has dismissed an appeal filed by the Income Tax Department against the Gujarat Energy Development Agency (GEDA), affirming that the delayed submission of an audit report in Form 10B by a charitable trust is a procedural requirement and does not automatically lead to the denial of exemption under Section 11 of the Income Tax Act, 1961. The ruling, for Assessment Year 2018-19, distinguishes the present case from a Supreme Court decision concerning Section 10B.
Case Background
Gujarat Energy Development Agency (GEDA) is a registered charitable trust under Section 12A of the Income Tax Act, engaged in charitable activities for over 40 years. For the Assessment Year 2018-19, GEDA filed its return of income, declaring a total income of Rs. 13,54,46,670 as business income and showing voluntary contributions of Rs. 1,52,03,71,381.
During the processing of the return under Section 143(1) by the Central Processing Centre (CPC), Bangalore, GEDA’s claim for exemption under Section 11 of the Act was disallowed. The reason for the disallowance was the non-e-filing of the audit report in Form 10B along with the return of income. Consequently, an intimation was issued, assessing the total income at Rs. 1,65,58,18,047, by adding the voluntary contributions to the declared income.
