ACIT(EXEMPTION) CIRCLE 2 AHMEDABAD, AHMEDABAD V. GURU GOBINDSINGH HOSPITAL ROGI KALYAN SAMITI, JAMNAGAR

ITA 1836/AHD/2025

AI Insights

The case revolves around the denial of exemption under section 11 of the Income Tax Act, 1961 to Guru Gobindsingh Hospital Rogi Kalyan Samiti, a registered charitable society, due to an alleged late filing of the Audit Report in Form 10B. The Income Tax Department initially allowed the exemption but later, through a rectification order, denied it citing the belated submission of the audit report. The assessee contested this decision, arguing that the report was filed within the extended deadline provided by a CBDT circular, and the delay in acknowledgment was due to technical glitches. The Addl. CIT(A) sided with the assessee, leading to the Revenue's appeal to the Tribunal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840023 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2021-2022
• Appeal Filed On: 29-09-2025
• Other Referred Cases: Shankeshwar Parshwanath Jain Swetamber Murti Pujak Aradhna Bhuvan Trust vs. NFAC, Delhi
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; Benefit of exemption
• Section: 154; 11; 12A; 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before: DR. BRR Kumar, Vice President And Shri T. R. Senthil Kumar, Judicial Member ACIT(Exemption) Circle-2, Ahmedabad (Appellant) Vs Guru Gobindsingh Hospital Rogi Kalyan Samiti 1 Pandit Nehru Marg, Jamnagar-361001, Jamnagar, Gujarat PAN: AAATG9920D (Respondent) Revenue Represented: Shri Alpesh Parmar, CIT-DR Assessee Represented: Shri Sagar Shah, A.R. Date of hearing : 24-02-2026 Date of pronouncement : 25-02-2026 आदेश/ORDER PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER This appeal is filed by the Revenue as against the appellate order dated 14-07-2025 passed by the Additional Commissioner of Income Tax/JCIT(Appeals)-7, Kolkata arising out of the rectification order passed under section 154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2021-22. 2. Brief facts of the case is that the assessee is registered charitable Society providing medical relief to General Public with the duly registered u/s. 12A and u/s. 80G(5) of the Act. The assessee filed its ITA No: 1836/Ahd/2025 Assessment Years: 2021-22 Printed from counselvise.com I.T.A No. 1836/Ahd/2025 A.Y. 2021-22 ACIT(Exemption) Vs. Guru Gobindsingh Hospital Rogi Kalyan Samiti 2 Return of Income for the Asst. Year 2021-22 on 10-03-2022 declaring total income of NIL after claiming exemption u/s. 11 of the Act amounting to Rs. 29,96,92,828/-. The return was processed u/s. 143(1) dated 26-08-2022 allowing the exemption u/s. 11 of the Act and refunded Rs.30,38,090/-. Thereafter by suo moto rectification order u/s. 154 of the Act, the Computer Processing Centre, Bengaluru passed rectification order dated 07-03-2023 that Audit Report in Form 10B filed belatedly by the assessee Society, therefore the claim of exemption u/s. 11(1)(d) was denied and the entire income of Rs.29,96,92,828/- was assessed to tax and demanded tax of Rs.12,17,30,930/-. 3. Aggrieved against the rectification order, the assessee filed an appeal before Addl. CIT(A) and explained that the due date for furnishing Audit Report in Form 10B was extended from 30-09-2021 to 15-02-2022 by the CBDT vide Circular No. 17/2021. The assessee obtained Audit Report in Form 10B on 14-02-2022 and uploaded in the e-filing portal with Acknowledgement No. 257583800250222 dated 14-02-2022. However the e-acknowledgement was generated and received on 25-02- 2022 due to some technical glitches. Therefore requested the Ld. Addl. CIT(A) to grant exemption u/s. 11 of the Act. Ld. Addl. CIT(A) considered the above submissions of the assessee and allowed the appeal filed by the assessee by observing as follows: “5.1 I have carefully gone through the Intimation u/s 143(1), the grounds of appeal and submission made by the appellant in this regard. Briefly stating facts of the case is that the appellant filed return of income which was processed u/s 143(1) by CPC making certain adjustments over and above the returned income. The only issue involved in this case is that the appellant which is a registered charitable society had filed return of income claiming exemption of its income u/s 11 of the I.T. Act. While processing the return u/s 143(1), CPC denied the exemption claimed u/s 11. 5.2 All the grounds of appeal raised by the appellant are against the denial of exemption u/s 11 of the Act. Facts involved in the issue is that the appellant Printed from counselvise.com I.T.A No. 1836/Ahd/2025 A.Y. 2021-22 ACIT(Exemption) Vs. Guru Gobindsingh Hospital Rogi Kalyan Samiti 3 filed return of income claiming exemption amounting to Rs.2,99,692,828/- as per provisions of Section 11(1). However, as the audit report in Form 10B was not filed within specified date, exemption u/s 11 was denied. Appellant claimed that although the Form 10B was electronically filed within the specified date, it was accepted by the System after such date due to which it was showing as delayed submission. As per the provisions of sec. 12A(1)(b) of the Act, to be eligible for exemption u/s 11, the appellant was required to file audit report in Form 10B on or before one month prior to the due date of filing return of income u/s 139(1). In the present case, the extended due date of filing return was 15.03.2022. The appellant was therefore required to e-file Form 10B on or before 15.02.2024. It is seen from the documents and other evidences submitted by appellant during appellate proceedings that the Form 10B was electronically uploaded in e-filing portal on 14.02.2022 itself. The IP address and the time at which it was uploaded is also showing the date of 14.02.2022. However, due to technical glitches in the system, the form was accepted and acknowledgement generated only on 25.02.2022. Since this date was after the date required to e-file the Form, CPC treated it was delay in filing and therefore disallowed the exemption u/s 11 claimed in return. In this regard, it is to be stated that the appellant has submitted sufficient evidence which suggests that the Form 10B was uploaded in e-filing portal well within the specified date but it is only due to technical glitches that it was accepted by system after due date. For such technical glitches, the appellant should not be penalized. Since the appellant had discharged its duty of uploading the relevant form and therefore satisfied the conditions laid down in section 12A(1)(b), exemption u/s 11 as claimed in return is directed to be allowed. The appeal is therefore allowed.” 4. Aggrieved against the appellate order, Revenue is in appeal before us raising the following Ground of Appeal: “Whether on the facts and in circumstances of the case, Ld. CIT(A), NFAC is justified in deleting the addition of Rs.29,96,92,828/- and allowing exemption u/s. 11 of the I.T Act as claimed in return.” 5. Heard rival submissions and perused the materials available on record. It is undisputed fact that the assessee uploaded Audit Report in Form 10B within the extended period on 14-02-2022 due to some technical glitches. Though the CPC allowed the claim of exemption u/s. 11 in the 143(1) proceedings dated 26-08-2022 and refunded the tax due to the assessee Society, thereafter invoked suo moto rectification order denying the benefit of exemption on the sole ground that Audit Report in Form 10B filed belatedly. Printed from counselvise.com I.T.A No. 1836/Ahd/2025 A.Y. 2021-22 ACIT(Exemption) Vs. Guru Gobindsingh Hospital Rogi Kalyan Samiti 4 6. On identical case, Co-ordinate Bench of this Tribunal in the case of Shankeshwar Parshwanath Jain Swetamber Murti Pujak Aradhna Bhuvan Trust vs. NFAC, Delhi in ITA No. 456/RJT/2023 vide order dated 08-10-2024 held as follows: “8. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. We find that assessing officer (CPC-Bengaluru), has erred in law, as well as on facts, in subsequently, disallowing the exemption claimed under section 11 of the Income tax Act 1961, by passing the rectification order under section 154 of the Act, dated 30.03.2023, on the ground, that no Form 10B was filed by the assessee. However, looking to the facts of the assessee's case, we find that assessee had duly uploaded the Form -10B, on e-filing portal of the Income Tax Department, on 10.01.2022. This fact is evident from the acknowledgement of Form 10B, hence the allegations, made by the assessing officer, in the order under section 154 of the Act, is completely baseless. Based on these facts and circumstances, we delete the addition made by the assessing officer. 9. In the result, assessee's appeal is allowed.” 6.1. The facts in the present case is also similar to the case decided by Co-ordinate Bench of this Tribunal. Therefore, we do not find any justification in the ground raised by the Revenue and denying claim of exemption u/s. 11 of the Act for late filing of Form 10B. Thus the appellate order passed by Addl. CIT(A) does not require any interference. 7. In the result, the appeal filed by the Revenue is hereby dismissed. Order pronounced in the open court on 25 -02-2026 Sd/- Sd/- (DR. BRR KUMAR) (T.R. SENTHIL KUMAR) VICE PRESIDENT True Copy JUDICIAL MEMBER Ahmedabad : Dated 25/02/2026 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- Printed from counselvise.com I.T.A No. 1836/Ahd/2025 A.Y. 2021-22 ACIT(Exemption) Vs. Guru Gobindsingh Hospital Rogi Kalyan Samiti 5 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद Printed from counselvise.com "