Bhairab Jnananandababa Seva Sangha Vs ITO (ITAT Kolkata)
Exemption u/s 11 Cannot Be Denied for Belated Form 10B – Procedural Defect Curable – CPC Adjustment Held Invalid – ITAT Kolkata
ITAT Kolkata allowed exemption u/s 11 to charitable trust holding that non-filing of audit report in Form 10B along with original return is only a procedural defect which can be cured subsequently. Assessee had initially filed return without Form 10B but later filed revised return curing defect and furnishing audit report before processing u/s 143(1). Despite availability of audit report on record, CPC and CIT(A) denied exemption solely on technical ground of delayed filing. Tribunal observed that exemption provisions for charitable entities should not be defeated for mere procedural lapses, especially when conditions of Sec 11 were otherwise satisfied and audit report was available with AO during processing. Relying on coordinate bench rulings and Gujarat HC decision in Sarvodaya Charitable Trust, ITAT held that delayed filing of Form 10B does not disentitle exemption and directed AO to allow benefit u/s 11. Appeal allowed in favour of assessee.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals)-2, Coimbatore (hereinafter referred to as the “Ld. CIT(A)”] dated 19.11.2025 for the AY 2017-18.
