ITO (Exemptions) Vs New Miraj Education Society (ITAT Pune)
Belated Form 10B Is Curable Procedural Lapse: ITAT Pune Upholds Section 11 Exemption Despite Late Audit Report
The Pune “B” Bench of the ITAT in ITO (Exemptions), Kolhapur vs. The New Miraj Education Society [ITA No.928/PUN/2025, AY 2021-22, order dt. 01-01-2026] dismissed the Revenue’s appeal and upheld the grant of exemption u/s 11 to the assessee-trust, despite delayed filing of audit report in Form 10B.
The assessee, a long-standing educational charitable trust registered u/s 12A & 80G, filed its return claiming exemption u/s 11. Though the accounts were audited well in time, Form 10B was uploaded belatedly. While processing the return u/s 143(1), CPC denied exemption solely due to late filing of Form 10B. The CIT(A) condoned the delay, treated the lapse as procedural, and allowed exemption.
Affirming the CIT(A)’s view, the Tribunal held that filing of Form 10B is directory and not mandatory, and where the audit report is ultimately filed and available during appellate proceedings, exemption u/s 11 cannot be denied on mere technical grounds. The Tribunal distinguished the Supreme Court ruling in PCIT vs. Wipro Ltd., holding it inapplicable to charitable trust cases under sections 11/12A. Relying on consistent High Court and ITAT precedents, the ITAT concluded that procedural delays should not defeat substantive charitable exemptions. Accordingly, the Revenue’s appeal was dismissed.
FULL TEXT OF THE ORDER OF ITAT PUNE
