Kanchanba Education Trust vs ACIT (Exemption) (ITAT Ahmedabad)
Delayed Form 10B is curable procedural lapse; ITAT Ahmedabad restores Sec 11 & 12 exemption
Ahmedabad Tribunal allowed Assessee’s appeal & set aside order of CIT(A) upholding denial of exemption u/s 11 & 12 merely for belated filing of Form 10B. Tribunal held that Trust was duly registered u/s 12A, accounts were audited, return was filed within extended due date & income was applied for charitable purposes. Filing of Form 10BB instead of Form 10B was a bona fide mistake, which was later rectified by filing Form 10B during appellate proceedings. Relying on binding judgment of SC in CIT(E) vs Anjana Foundation (2025) & decisions of Gujarat HC, Tribunal held that time & mode of furnishing Form 10B are procedural, delay is a curable defect, & exemption cannot be denied once audit report is on record before completion of appellate proceedings. Accordingly, Tribunal directed AO to allow exemption u/s 11 & 12 in full, deleting CPC adjustment made u/s 143(1)
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), ADDL/JCIT(A)-1, Chennai vide order dated 11.07.2025 passed for A.Y. 2024-25.
