Guru Singh Sabha Vs ITO (ITAT Dehradun)
Income Tax Appellate Tribunal (ITAT) Dehradun bench has ruled in favor of Guru Singh Sabha in two appeals against the Income Tax Officer (ITO) for assessment years 2020-21 and 2021-22. The dispute centered on the assessee’s entitlement to Section 11 exemption under the Income-tax Act, 1961, following the late submission of its prescribed tax audit report in Form 10B.
The Revenue had contended that the filing of Form 10B by the due date of the Section 139(1) return was a mandatory requirement, and non-compliance barred the assessee from claiming the exemption. However, the ITAT rejected this argument.
The Tribunal cited the judicial precedent set by the Gujarat High Court in the case of Sarvodaya Charitable Trust Vs. ITO (2021) 125 taxmann.com 75 (Guj.). This ruling established that the requirement to file Form 10B is directory, rather than mandatory, and can be submitted even during appellate proceedings.
Consequently, the ITAT accepted Guru Singh Sabha’s grounds, allowing the appeals for statistical purposes. The Assessing Officer has been directed to proceed with consequential computations in accordance with the law, verifying all relevant facts. The order was pronounced in open court on April 23, 2025.
FULL TEXT OF THE ORDER OF ITAT MUMBAI DEHRADUN
