SRI GURU SINGH SABHA,NAINITAL V. ITO (EXEMPTION), DEHRADUN

ITA 209/DDN/2024

AI Insights

The case involves Sh. Guru Singh Sabha, a religious organization, appealing against the orders of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which disallowed their claim for section 11 exemption under the Income-tax Act, 1961. The disallowance was based on the non-filing of the prescribed tax audit report in Form 10B by the due date as required under section 139(1) of the Act. The Tribunal, referencing the precedent set in Sarvodaya Charitable Trust Vs. ITO, determined that the compliance with filing Form 10B is a directory provision, allowing for its submission during appellate proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126673 (ITAT-DEHRADUN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2021-2022
• Other Referred Cases: Sarvodaya Charitable Trust Vs. ITO (2021) 125 taxmann.com 75 (Guj.)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A. S. RANA
• Assessee Lawyers: P AVAN KUMAR NATH
• Keywords: Charitable institution; National Faceless Appeal; Section 139(1); HRA; Commissioner; Commissioner of Income Tax; Statistical purposes; Exempt; Due date of filing; Department
• Section: 154; 143(1); 11; 139(1); 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DEHRADUN “SMC” BENCH, DEHRADUN BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA Nos.208 & 209/DDN/2024 Assessment Years: 2020-21 & 2021-22 Sh. Guru Singh Sabha, Gurudwara, Mallital, Nainital, Uttarakhand Vs. Income Tax Officer (Exemption), Dehradun PAN :ADUPC2094D (Appellant) (Respondent) ORDER PER SATBEER SINGH GODARA, JM These assessee’s twin appeals for assessment year 2020-21 and 2021-22, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s orders, both dated 21.08.2024, having DIN and orders no. ITBA/NFAC/S/250/2024-25/1067796533(1) and ITBA/NFAC/S/250/2024-25/1067796533(1), involving proceedings under section 154 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Assessee by Sh. Pavan Kumar Nath, Adv. Department by Sh. A.S. Rana, Sr. DR Date of hearing 21.03.2025 Date of pronouncement 23.04.2025 ITA Nos.208 & 209/DDN/2024 2 | P a g e 2. It transpires during the course of hearing with the able assistance coming from both the parties that learned lower authorities have held the assessee as not entitled for claiming section 11 exemption for having not filed its prescribed tax audit report in Form 10B on or before the due date of filing section 139(1) return, in the course of the twin identical section 143(1) “proceedings”, both dated 28th January, 2024, and upheld in the lower appellate discussion. This leaves the assessee aggrieved. 3. Both the learned representatives reiterate their respective stands against and in support of the correctness of impugned section 11 exemption disallowance. The Revenue’s case, more particularly, is that the assessee is barred by the principle of stricter interpretation from claiming section 11 exemption relief herein once it has failed to ensure compliance of filing of tax audit report in Form 10B within the prescribed due date of filing of return under section 139(1) of the Act. Its case in other words is that the above compliance of filing of Form 10B tax audit report is mandatory in nature. We find no merit in the Revenue’s foregoing argument in principle in light of Sarvodaya Charitable Trust Vs. ITA Nos.208 & 209/DDN/2024 3 | P a g e ITO (2021) 125 taxmann.com 75 (Guj.) having settled the issue in assessee’s favour and against the department that the above compliance to filing of Form 10B tax audit report is directory than a mandatory provision which could even be uploaded during appellate proceedings as well. We thus accept the assessee’s instant substantive grounds in both these appeals in principle and leave it open for the learned Assessing Officer to framed his consequential computation as per law after verifying all the relevant facts. Ordered accordingly. 4. No other ground or argument has been pressed before us. 5. These assessee’s twin appeals ITA Nos.208 & 209/DDN/2024 are allowed for statistical purposes. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 23rd April, 2025 Sd/- Sd/- (M. BALAGANESH) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 23rd April, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "