Sahayog Charitable Society Vs ITO (ITAT Delhi)
Portal Glitch – Form 10B Filing Error Not Fatal- Can’t Deny Charity Exemption – ITAT Delhi Allows Sec.11 Relief
Assessee, , a society registered u/s 12A & engaged in charitable activities, filed its return of income for AY 2021-22 on 15.12.2021 declaring nil income after claiming exemption u/s 11. Audit report in Form 10B was filed on 16.11.2021, but due to a technical glitch, acknowledgment was not generated. On receiving communication from CPC, Bengaluru, Assessee again uploaded Form 10B on 08.03.2022.
CPC, however, disallowed exemption u/s 11 on the ground that Form 10B was filed after the due date, thereby making an addition of ₹1.17 crore & raising demand of ₹48.16 lakh. Rectification application was rejected. CIT(A) also confirmed denial of exemption, relying on CC v. Dilip Kumar & Co. (SC).
Before Tribunal, Assessee contended that Form 10B had been duly filed before filing of return & well before the extended due date (15.03.2022 as per CBDT’s Covid extension). Filing again on 08.03.2022 was only to rectify portal error. It was argued that mere non-generation of acknowledgment could not defeat a substantive claim of exemption. Reliance was placed on ITAT Delhi ruling in Puran Chand Arora Charitable Trust (ITA No.625/Del/2024, order dated 22.11.2025) & SC in CIT v. G.M. Knitting Industries (P) Ltd. (376 ITR 456).
