Shashi Krishna Educational Vs ITO Exemption (ITAT Patna)
Belated Form 10B Is Procedural: ITAT Restores Section 11 Exemption Denied at 143(1) Stage
The Patna DB Bench of the Income Tax Appellate Tribunal, Kolkata (virtual court) held that belated filing of audit report in Form 10B is a procedural and directory requirement, and exemption under section 11 cannot be denied merely on that ground while processing the return u/s 143(1).
In this case, the charitable society—though registered u/s 12A—had e-filed Form 10B after the due date. CPC denied exemption u/s 11 at the processing stage and taxed the entire gross receipts at maximum marginal rate, a view upheld by the Addl. JCIT(A). The Tribunal disagreed, noting that Form 10B was available on record at the time of processing/rectification, and reliance on audit objections and Chapter III theory to tax gross receipts was misplaced.
Relying on judicial precedents (including Calcutta High Court decisions) holding that Form 10B filing is procedural, the Tribunal ruled that such a claim cannot be disallowed as a prima facie adjustment u/s 143(1) and requires proper examination in regular assessment proceedings. Accordingly, the intimation u/s 143(1) and the appellate order were set aside, and the matter was remanded to the Assessing Officer to allow exemption u/s 11 in accordance with law, after granting due opportunity to the assessee.
FULL TEXT OF THE ORDER OF ITAT PATNA
