Shri Sadguru Dada Maharaj Sangavadekar Seva Pratishthan v. ITO(E)

Case snapshot

Sections / provisions: 11

Questions before the Court / Tribunal

• Delayed Form 10BB; procedural compliance: The reported ruling considers whether delay in furnishing the prescribed audit/reporting form should by itself defeat a charitable exemption otherwise claimed on the underlying facts.

Material facts and background

accessible to the CPC. 3. The denial of exemption in such circumstances where the form was available on record at the time of proceedings is factually perverse and contrary to the consistent view of this Tribunal and the High Court that where the audit report is on record at the time processing or assessment, exemption cannot be denied on the ground of belated filing.” 2. The brief facts of the case are that, the assesseeis a charitable trust registered u/sec12AA of the Act.. The assessee has filed the return of income for the A.Y. 2024-25 on 21.10.2024

disclosing a total income of Rs.NIL after claiming

exemption u/sec11 of the Act within the extended due date u/sec139(1) of the Act

assessee has filed Form.No.10BB electronically on 21 October 2024.Subsequently, the return of income was processed u/sec 143(1) of the Act

Form.10BB was not filed one month prior to due date

filling the return of income u/sec139(1) of the Act and the assessee has violated the provisions and

benefit u/sec 11 and u/sec11(1)(a) of the Act is

Appellant / assessee submissions

3. Aggrieved by the order, the assessee has filed the appeal before the CIT(A). Whereas the CIT(A) has considered the grounds of appeal, statement of facts, submission of assessee and findings of assessing officer and but has confirmed the action of the CPC/A.O and dismissed the assessee’s appeal. Aggrieved by the order of the CIT(A), the assessee has filed the appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld. AR submitted that the CIT(A) has erred in sustaining the denial of the claim of exemption overlooking the facts and submissions. The CIT(A) has not considered

(Exemption) has dealt on the similar issue at Para 3 to 9 of the order as under:“3. At the outset itself, it was stated that the solitary issue in the present appeal pertains to denial of exemption claimed by the assessee u/s. 11/12 of the Act, for the reason that Form 10BB was filed delayed by the assessee. It was pointed out, that the impugned assessment year was AY 2023-24 ,the due date of furnishing return of income for the impugned year was 30-11-23and the assessee was required to file Form 10BB one month prior to the said due date, however the said form was filed delayed on31.03.2024. The assessee, it was pointed out, being a charitable trust had claimed its entire income exempt in terms of the provisions of Section 11 of the Act. However, due to delayed filing of Form 10BB the Centralized Processing Centre (CPC) denied assessee claim of exemption while processing its return u/s 143(1)(a) of the Act and determined income at Rs.18,49,950/-. The same , it was pointed out, was confirmed by the ld. CIT(A) stating that neither the AO nor the first appellate authority had been granted powers by the Act to condone the delay in filing Form 10BB, which power it was stated vested only...

Revenue / respondent submissions

(Exemption) has dealt on the similar issue at Para 3 to 9 of the order as under:“3. At the outset itself, it was stated that the solitary issue in the present appeal pertains to denial of exemption claimed by the assessee u/s. 11/12 of the Act, for the reason that Form 10BB was filed delayed by the assessee. It was pointed out, that the impugned assessment year was AY 2023-24 ,the due date of furnishing return of income for the impugned year was 30-11-23and the assessee was required to file Form 10BB one month prior to the said due date, however the said form was filed delayed on31.03.2024. The assessee, it was pointed out, being a charitable trust had claimed its entire income exempt in terms of the provisions of Section 11 of the Act. However, due to delayed filing of Form 10BB the Centralized Processing Centre (CPC) denied assessee claim of exemption while processing its return u/s 143(1)(a) of the Act and determined income at Rs.18,49,950/-. The same , it was pointed out, was confirmed by the ld. CIT(A) stating that neither the AO nor the first appellate authority had been granted powers by the Act to condone the delay in filing Form 10BB, which power it was stated vested only...

9. Ld. DR was unable to draw our attention to any decision of the jurisdictional High Court holding to the contrary. In view of the same respectfully following the binding judicial precedents and having regard to the fact that the audit report in Form 10BB was duly filed and was available on record prior to the issuance of intimation u/s. 143(1)(a) of the Act, I hold that the denial of exemption u/s. 11 of the Act was not justified. In the result, appeal of the assessee is allowed. “

Court / Tribunal analysis and reasoning

(Exemption) has dealt on the similar issue at Para 3 to 9 of the order as under:“3. At the outset itself, it was stated that the solitary issue in the present appeal pertains to denial of exemption claimed by the assessee u/s. 11/12 of the Act, for the reason that Form 10BB was filed delayed by the assessee. It was pointed out, that the impugned assessment year was AY 2023-24 ,the due date of furnishing return of income for the impugned year was 30-11-23and the assessee was required to file Form 10BB one month prior to the said due date, however the said form was filed delayed on31.03.2024. The assessee, it was pointed out, being a charitable trust had claimed its entire income exempt in terms of the provisions of Section 11 of the Act. However, due to delayed filing of Form 10BB the Centralized Processing Centre (CPC) denied assessee claim of exemption while processing its return u/s 143(1)(a) of the Act and determined income at Rs.18,49,950/-. The same , it was pointed out, was confirmed by the ld. CIT(A) stating that neither the AO nor the first appellate authority had been granted powers by the Act to condone the delay in filing Form 10BB, which power it was stated vested only...

filing Form 10BB and the mere fact of delay in the same would not adversely affect the right of the assessee to claim exemption u/s. 11 of the Act. In this regard, I draw support from the judgment of the Hon'ble Gujarat High Court in the case of Commissioner of Income Tax (Exemption) vs. Laxmanarayan Dev Shrishan Seva Khendra [2024] 167 taxmann.com 548 (Gujarat) [10.09.2024],wherein it was held at paragraph Nos. 7 & 9 of the order as under:- ……………………… “7. Reference to the aforesaid decision has no connection whatsoever remotely to the facts of the present case and therefore, in the facts of the present case, the Tribunal has rightly followed the decision of this Court in case of Sarvodaya Charitable Trust v. ITO (Exemption) in Application No.6097 of 2020 decided on 09th December, 2020/[2021] 125 taxmann.com 75/278 Taxman 148 (Gujarat) as well as the decision in case of Social Security Scheme of GICEA (supra) to uphold the decision of the CIT (Appeals), wherein this Court has held that the approach of the authority in such type of cases should be equitable, balancing and judicious. In the facts of the case, when the assessee has already filed the audit report in Form 10B...

right of the Assessee to claim an exemption, which would in turn, result in the Assessee having to pay the demanded amount, thereby unjustly enriching the Department.In such view of the matter in our opinion, the Petitioner would have been caused undue hardship which the Department could have alleviated by allowing the Assessee's application under Section 119(2)(b) of the Act, which is rejected only on the technical grounds. 7.2 This Court in several recent decisions, namely in the case of Royal Led Equipments (P.) Ltd. v. Chief Commissioner of Income-tax [2025] 174 taxmann.com 61 (Gujarat)/Special Civil Application No. 14786 of 2024 and in the case of Surat Smart City Development Ltd. v. Principal Commissioner of Income-tax [2024] 169 taxmann.com 222 (Gujarat)/Special Civil Application No. 10397 of 2024 has directed the Department to consider the Assessee's applications under Section 119(2)(b) of the Act to ensure that the purpose for which the said provision remains on the statute book is carried out and the said provision is not rendered illusory or becomes a dead letter. 8. In view of the aforesaid discussion, the present Petition succeeds and accordingly allowed. The impugned...

therefore, also not an obligation to file Form 10B as well. Thirdly, delayed filing of Form 10B is a procedural defect and since the assessee trust had filed the same before Ld. JCIT(A) during the course of appellate proceedings, no disallowance was called for on account of late filing of said Form 10B. 10. On going through the various adjustments which have been incorporated under Section 143(1) of the Act, we are of the considered view that treatment of such corpus donation as voluntary donation falls outside the scope of adjustments contemplated under Section 143(1) of the Act, unless such incorrect claim is apparent from any information in the return of income. In the return of income filed by the assessee, such donation of Rs. 17,96,000/- was specifically treated as corpus donation and not as voluntary donation. Accordingly, in our considered view, treatment of corpus donation as voluntary donation falls outside the scope of adjustments contemplated under Section 143(1) of the Act. Secondly, we observe that in the case of Shree Swaminarayan Charitable Trust (supra), wherein the ITAT has made the following observations: "3. The issue before me pertains to delayed submission of...

Operative decision and relief

right of the Assessee to claim an exemption, which would in turn, result in the Assessee having to pay the demanded amount, thereby unjustly enriching the Department.In such view of the matter in our opinion, the Petitioner would have been caused undue hardship which the Department could have alleviated by allowing the Assessee's application under Section 119(2)(b) of the Act, which is rejected only on the technical grounds. 7.2 This Court in several recent decisions, namely in the case of Royal Led Equipments (P.) Ltd. v. Chief Commissioner of Income-tax [2025] 174 taxmann.com 61 (Gujarat)/Special Civil Application No. 14786 of 2024 and in the case of Surat Smart City Development Ltd. v. Principal Commissioner of Income-tax [2024] 169 taxmann.com 222 (Gujarat)/Special Civil Application No. 10397 of 2024 has directed the Department to consider the Assessee's applications under Section 119(2)(b) of the Act to ensure that the purpose for which the said provision remains on the statute book is carried out and the said provision is not rendered illusory or becomes a dead letter. 8. In view of the aforesaid discussion, the present Petition succeeds and accordingly allowed. The impugned...

Authorities and precedents appearing in the judgment

• Income Tax (Exemption) vs. Laxmanarayan Dev Shrishan Seva Khendra
• Court in case of Sarvodaya Charitable Trust v. ITO
• Mahila Pragati Mandal vs. Income-tax Officer (Exemption)
• In Association of Indian Panel Board Manufacturers v. Dy.CIT
• CIT (Exemption) v. Anjana Foundation
• P.) Ltd. v. Chief Commissioner of Income-tax
• City Development Ltd. v. Principal Commissioner of Income-tax
• Shree Vardhman Stanakvasi Jain Shravak Trust vs. Income-tax Officer
• Manufacturer v. DCIT
• In the case of Shree Bhakt Samaj Vikas Education Trust vs. Assistant Commissioner
• Sarvodaya Charitable Trust v. ITO(E)
• We may also refer to the decision of this Court in CIT v. Gujarat Oil and Allied

This list is machine-assisted from the judgment text and is not a substitute for checking the full citation chain in the PDF.

Ratio and legal principle

The decision turns on Delayed Form 10BB; procedural compliance. The operative result is classified as Quashed / set aside. Read the rule only with the statutory version, factual findings and precedent chain recorded in the full judgment.

Why this judgment matters

The case is relevant to taxpayers, advisers and litigators dealing with Delayed Form 10BB; procedural compliance. Its practical value lies in the interaction between the statutory text, the evidentiary record and the procedural route followed in this case.

Practitioner action points

• Keep registration, audit-report, Form 10/10B/10BB and filing timestamps together; many exemption disputes are procedural and depend on when the form existed versus when it was uploaded.
• For litigation, attach the full judgment/order to the working paper and cite the paragraph/page supporting the proposition rather than relying on a headnote alone.

Full judgment and source trail

Read / download the clean local judgment copy

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