Exemption U/S 11 cannot be denied merely due to delay in filing Form 10B: ITAT Delhi
Shambhu Dayal Modern School, Sonepat v. ITO Exemptions Ward, Rohtak (ITA No. 1236/Del/2024)
Facts:
1. The assessee is a society registered u/s 12AA of the Act vide registration dated 08.01.2001. It is pertinent to note that return of income was filed belatedly on 31.03.2022. Fresh registration u/s 12AB (despite the fact that they already were registered under Old Section 12AA) of the Income Tax Act was obtained by the assessee only on 05.04.2022.
2. Hence, it would be impossible for the assessee to mention the details of registration obtained u/s 12AB of the Act in the relevant column of the ITR filed on 31.03.2022.
3. The assessee had furnished the audit report in form No. 10B along with return of income on 31.03.2022. This filing of audit report in form 10B of the Act was filed beyond the prescribed due date i.e. 15.03.2022.
4. Now the moot question that arises is whether non uploading of Form 10B within the date prescribed under the Act would become fatal to the claim of exemption u/s 11 of the Act ?
ITAT Delhi held as below:
1. The requirement of filing of audit report in Form 10B was only procedural requirement of law and as long as the same was made available to the ld AO before the completion of assessment either u/s 143(1)/ 143(3)/ 144/ 147 of the Income Tax Act, the substantive claim of exemption u/s 11 of the Act cannot be denied to the assessee.
2. The said application made by the assessee for seeking fresh registration u/s 12AB of the Act is well within time allowed by CBDT.
3. Hence the original registration obtained u/s 12AA of the Act dated 08.01.2001 would protect the assessee up to AY 2021-22 for claim of exemption u/s 11 of the Act as long as other conditions prescribed in section 11 to 13 of the Act have been fulfilled by the assessee.
4. In view of the aforesaid observations, the grounds raised by the assessee are allowed.
The copy of the order is as under:
