Trilok Singh Bhandari Charitable Trust Vs ITO (ITAT Delhi)
ITAT Delhi held that denial of exemption under section 11 of the Income Tax Act for delay in filing of Form 10B is not justifiable since condition of filing Form 10B is directory in nature and not mandatory. Accordingly, appeal allowed and exemption granted.
Facts- Assessee has preferred the present appeal mainly contesting denial of exemption under section 11 of the Income Tax Act since audit report in Form 10B was not filed along with or before filing of return of income.
Conclusion- Held that the assessee was claiming the benefit u/s 10B(8) of the Act as per the provisions of section 10B and the assessee has to comply certain conditions failing which the assessee will loose the benefit. In the present case, the assessee has to file the audit report in Form 10B before the due date as per Rule 12A(1)(b) of the Rules. I observed that the above conditions of filing the Form 10B was relaxed by the CBDT in the earlier assessment years, therefore, it clearly shows that it is only directory in nature and not mandatory, since, it is in compliance with Rules framed for availing the benefit under the provisions of Section 11 and it is held that to be directory in nature.
