RAJ LAXMI CHARITABLE TRUST,MEERUT V. ITO, EXEMPTION WARD, GHAZIABAD

ITA 7582/DEL/2025

AI Insights

The case involves Rajlaxmi Charitable Trust appealing against the decision of the lower tax authorities, which denied them the section 11(2) exemption under the Income-tax Act, 1961 for the assessment year 2016-17. The denial was based on the grounds that the trust had belatedly filed its Form 10. However, the Tribunal noted that the trust had actually filed the Form 10 audit report physically on 26.07.2016, well before the due date for filing the return under section 139(1) on 11.05.2017, and before the assessment order dated 19.12.2018. The Tribunal referenced several judicial precedents to support the view that the compliance with the filing of Form 10 is directory and not mandatory, thus overturning the decision of the lower authorities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822720 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 21-11-2025
• Other Referred Cases: CIT v. Xavier Kelvani Mandal Pvt. Ltd. [2014] 41 taxmann.com 184(Gujarat), CIT v. Gujarat Oil & Allied Industries (1993) 201 ITR 325 (Gujarat)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 143(3); 10B

Judgement Text

"1 ITA No. 7582/Del/2025 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No. 7582/Del/2025 Assessment Year: 2016-17 Rajlaxmi Charitable Trust, A-64, Saket-250002 (UP) PAN: AAATR 4883 Q Vs Income Tax Officer, (Exemption Ward), Ghaziabad. APPELLANT RESPONDENT Assessee represented by Shri Rohit Agarwal, CA Department represented by Shri Amit Shukla, Sr. DR Date of hearing 24.12.2025 Date of pronouncement 24.12.2025 O R D E R PER SATBEER SINGH GODARA, JM: This assessee’s appeal ITA no. 7582/Del/2025 for assessment year 2016-17 arises against CIT(A)/JCIT(A)-1, Chennai’s order dated 12.09.2025 (DIN & Order No. ITBA/APL/S/250/2025-26/1080680562(1), in proceedings u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’. Heard both the parties. Case file perused. 2. It emerges at the outset during the course of hearing with the able assistance coming from both the parties that the learned lower authorities have refused section 11(2) exemption to the assessee; a registered charitable trust, for the sole Printed from counselvise.com 2 ITA No. 7582/Del/2025 reason of having belatedly filed its Form 10, in assessment order dated 19.12.2018 as upheld in the lower appellate discussion. 3. Faced with this situation, the tribunal hereby notices from a perusal of the case records that the assessee/appellant had physically filed its Form 10 audit report on 26.07.2016 i.e. well before submitting its section 139(1) return dated 11.05.2017 which followed e-filing thereof on 18.12.2018 i.e. again before the Assessing Officer’s assessment order passed on 19.12.2018. The Revenue vehemently argues that the above compliance is mandatory in nature and the assessee is not entitled for its impugned exemption claim in very terms therefore. 4. I have given my thoughtful consideration to the assessee and the Revenue’s respective vehement contentions. I find no reason to concur with both the learned lower authorities respective findings rejecting the assessee’s impugned exemption claim. Suffice to say various judicial precedents including CIT v. Xavier Kelvani Mandal Pvt. Ltd. [2014] 41 taxmann.com 184(Gujarat) & CIT v. Gujarat Oil & Allied Industries (1993) 201 ITR 325 (Gujarat), have already settled the issue that such a compliance of uploading Form 10 or 10A or Form 10B tax audit report; as the case may be, is only directory in nature. It is further reiterated that the assessee had duly filed its prescribed audit report in Form 10 vey well before from the learned Assessing Officer’s assessment (supra). I accordingly accept the assessee’s Printed from counselvise.com 3 ITA No. 7582/Del/2025 sole substantive ground herein and direct the learned Assessing Officer to finalize the consequential computation afresh as per law. 5. This assessee’s appeal ITA No. 7582/Del/2025 is allowed. Order pronounced in open court on 24.12.2025. Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 29.12.2025. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "