SAHAJ SEVA TRUST,KOLHAPUR V. ITO EXEMPTION WARD, KOLHAPUR

ITA 541/PUN/2025

AI Insights

The case involves Sahaj Seva Trust appealing against the decision of the National Faceless Appeal Centre, which denied them the benefits under sections 11 and 12 of the Income-tax Act due to the late filing of Form No.10B. The Trust argued that the form was filed during the appellate proceedings and that the requirement to file this form is directory, not mandatory. The Tribunal considered similar cases and precedents, ultimately deciding in favor of the Trust, allowing the appeal and granting the claimed benefits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314376 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Other Referred Cases: S.M. K.R. Vashi High School Vs. ITO (Exemption), CIT (Exemption) Anjana Foundation
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GANESH B BUDRUK
• Assessee Lawyers: VAIBHAV CHAUGULE
• Section: 11; 12

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.541/PUN/2025 Assessment Year : 2014-15 Sahaj Seva Trust, 398 E Ward, Ashish Chambers, Shahupuri, Kolhapur – 416008 Maharashtra PAN : AACTS9170R Vs. ITO Exemption Ward, Kolhapur Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y. 2014-15 is directed against the order dated 17.12.2024 passed by National Faceless Appeal Centre, Delhi arising out of the Assessment order dated 14.01.2021 passed u/s.154 r.w.s.143(1) of the Income-tax Act, 1961 (in short ‘the Act). 2. The only grievance of the assessee is that the benefit of sections 11 and 12 has been denied to the assessee for non- filing of Form No.10B within the prescribed time limit and that ld.CIT(E) has not considered the Form No.10B filed at the later stage on 02.03.2022 which was filed at the appellate proceedings. It was also submitted that filing of Form No.10B is directory in nature and the same should have been considered by ld.CITA) while deciding the issue. Appellant by : Shri Vaibhav Chaugule Revenue by : Shri Ganesh B Budruk Date of hearing : 29.04.2025 Date of pronouncement : 06.05.2025 ITA No.541/PUN/2025 Sahaj Seva Trust 2 3. Ld. Departmental Representative supported the orders of the lower authorities. 4. We have heard both the sides and perused the record placed before us. We note that assessee holds valid registration u/s.12A of the Act vide letter dated 13.03.2022, but has filed Form No.10B belatedly on 02.03.2022 and ld.CIT(A) who has also the co-terminus powers to that of ld. AO did not accepted the audit report filed on Form No.10B and denied the benefits of sections 11 and 12 to the assessee. 5. We note that the Coordinate bench, Surat in the case of S.M. K.R. Vashi High School Vs. ITO (Exemption) reported in 157 taxmann.com 702 (ITAT, Surat) has held that even if the Form No.10B could not be uploaded due to some technical error on the income-tax portal, benefit of section 11 could not be denied merely on account of delay in furnishing the audit report. Hon’ble High Court in the case of CIT (Exemption) Anjana Foundation reported in 168 taxmann.com 462 (Gujarat) has held that filing of Form No.10B is a procedural requirement and benefit of section 11 should not be denied for delay in furnishing Form No.10B. Hon’ble Court thus affirmed the view taken by the Tribunal in its order dated 07.02.2023 in ITA No.695/Ahd/2023. We therefore following the ratio laid down in the above referred decisions hold that the assessee holding valid registration u/s.12A of the Act has filed Form No.10B belatedly but during the appeal proceedings itself and filing of such report is directory and not mandatory as held by Hon’ble Courts, therefore, benefit of sections 11 and 12 claimed by the assessee in income-tax return deserves to be allowed. Grounds of appeal raised by the assessee are allowed. ITA No.541/PUN/2025 Sahaj Seva Trust 3 6. In the result, appeal of the assessee is allowed. Order pronounced on this 06th day of May, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 06th May, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "