Filing Form 10/10B is merely directory in nature and failure to furnish Form 10/10B before the due date cannot be so fatal as to deny the claim of exemption under section 11(2): ITAT Hyderabad

 

Here is an interesting favourable ruling which would be helpful for various charitable trust. Recently, Hyderabad ITAT has held that filing Form 10/10B is merely directory in nature and failure to furnish Form 10/10B before the due date prescribed under section 139(1) of the Income-tax Act cannot be so fatal as to deny the claim of exemption under section 11(2) of the Act

It was in the case of Darga Ehazrat Syedshah Khwajadas Chisti Unnayabi Perpetual Trust (Vatpalli). The case revolved around the denial of tax exemption benefits (Section 11 and 12) to the Trust due to the delayed filing of Form 10B. However, by referencing to the merits of the case and taking assistance of a similar precedent set by the Ahmedabad Tribunal (ITO vs. Ramji mandir religious and charitable trust (2024) 158 Taxmann.com 114) Taxmann, it was argued that the delayed submission should not invalidate the exemption.

The copy of the order is as under:

1725199903351