Assessee failed to file return of income and Form No. 10B before ...

Charitable Trust's Exemption Claim Upheld Despite Delay in Filing Audit Report.

Case Laws     Income Tax

August 30, 2024

Assessee failed to file return of income and Form No. 10B before due date, resulting in denial of benefit u/ss 11 and 12. However, consistent judicial precedents, including Sarvodaya Charitable Trust, Shri Laxmanarayan Dev Shrishan Seva Khendra, and Sh. Rajkot Vishashrimali Jain Samaj cases, have held that exemption cannot be denied merely for delay in furnishing audit report in Form No. 10B, especially when authorities have discretionary powers to condone such delay. The Appellate Tribunal noted that the assessee filed Form No. 10B within the extended due date, and the denial of Section 11 benefit was due to incorrect factual appreciation. Consequently, the Tribunal directed the Assessing Officer to consider Form No. 10B and allow the exemption claim u/s 11.

View Source