Even if Form 10B is filed at a later stage, Section 11 exemption cannot be denied

Anjana Foundation Vadodara Vs A.O. (ITAT Ahmedabad)

Introduction: The case of Anjana Foundation Vadodara vs A.O. was brought before the Income Tax Appellate Tribunal (ITAT) in Ahmedabad. The dispute revolved around whether the advance filing of Form 10B along with the income tax return is a mandatory requirement for claiming exemption under Sections 11 and 12 of the Income-tax Act.

Detailed Analysis: The appellant, Anjana Foundation Vadodara, contested an adjustment made by the Commissioner of Income Tax (Appeals) regarding the exemption claimed under Sections 11 and 12 of the Act. The adjustment was based on the non-filing of Form 10B along with the income tax return.

The ITAT examined the matter and observed that the failure to file Form 10B was the sole reason for denying the exemption claimed by the appellant. However, the appellant had prepared Form 10B well in advance but failed to file it due to its income being below the taxable limit.

Citing relevant legal precedents, including a decision by the Hon’ble Gujarat High Court, the ITAT emphasized that the filing of Form 10B along with the return of income is not a mandatory requirement for claiming exemption under Sections 11 and 12. The tribunal noted that even if Form 10B is filed at a later stage, the exemption cannot be denied if all other conditions are met.

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