Aditi Educational Trust Vs ITO (ITAT Bangalore)
Late Filing of Form 10B Not Fatal – ITAT Allows Exemption When Audit Report Available Before Processing
The assessee trust claimed exemption under Sections 11 & 12, but mistakenly filed Form 10BB instead of Form 10B within time and later filed the correct Form 10B with delay (262 days). The CPC denied exemption under Section 143(1) due to non-compliance with filing timelines.
The ITAT Bangalore held that while filing of audit report in Form 10B is a substantive requirement, the timing of filing is procedural in nature. Since the correct Form 10B was available on record before processing of the return, the essential condition of law stood satisfied.
Relying on Gujarat High Court rulings, the Tribunal observed that procedural delays should not defeat substantive exemption rights, especially where compliance is ultimately achieved before assessment/processing. It further clarified that condonation under Section 119(2)(b) is only an additional remedy and not mandatory.
Accordingly, the ITAT directed the AO to grant exemption under Sections 11 & 12 for both assessment years, allowing the appeals in full.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
1. These 2 appeals are filed by the Appellant Trust namely M/s. Aditi Educational Trust [Assessee/Appellant] for Assessment Year 2021- 22 and 2022- 23 against Appellate Order passed by the Joint Commissioner of Income Tax [Appeals], National Faceless Appeal Centre [the ld. CIT (A)] on 30.10.2025 for Assessment Year 2021- 22 and Appellate Order passed on 23.08.2025 for Assessment Year 2022- 23.
