Krantidevta Savitribai Phule Shikshan Sanstha Vs ITO (Exemption) (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT), Mumbai, has ruled in favor of Krantidevta Savitribai Phule Shikshan Sanstha, granting a tax exemption of ₹4.07 crore under Section 10(23C)(vi) of the Income Tax Act, 1961. The tribunal overturned the decision of the Commissioner of Income Tax (Appeals) [CIT(A)], Faridabad, which had denied the exemption due to a procedural delay in validating Form 10BB. ITAT found that the delay in verification did not justify the denial of exemption, as the form was obtained and uploaded before the due date.
The case involved the assessment year 2022-23, where the assessee, a public charitable trust, claimed exemption on its total income. The trust obtained Form 10BB on September 29, 2022, and filed its income tax return on September 30, 2022. However, the form was validated on December 5, 2022, beyond the prescribed deadline of October 7, 2022. The Centralized Processing Centre (CPC) disallowed the exemption, assuming non-compliance with procedural requirements. CIT(A) upheld the disallowance, stating that the delay in Form 10BB validation rendered the exemption claim invalid.
Upon review, ITAT noted that Form 10BB was digitally signed and uploaded along with the income tax return within the deadline. The tribunal observed that procedural delays in validation should not overshadow substantive compliance. ITAT emphasized that minor procedural lapses should not result in denial of legitimate tax benefits, especially when the intent of compliance is evident.
