Tribunal Overturns Revenue Ruling: Delayed Form 10B Submission Deemed Procedural, Exemptions Under Sections 11(1) and 11(2) Granted.

The Tribunal ruled in favor of the assessee, overturning the decisions of the Revenue authorities. It concluded that the delayed submission of Form no. 10B was a procedural issue, not a substantive one, and did not impede the claim for exemptions under sections 11(1) and 11(2) of the Income Tax Act. The Tribunal's decision was influenced by the jurisdictional High Court's interpretation, which deemed the filing of Form no. 10B and the audit report as procedural requirements. Consequently, the Tribunal set aside the orders of the lower authorities and allowed the appeal, granting the requested exemptions.

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The issue in this case revolves around the delayed submission of Form no. 10B by the assessee, which the counsel argued was a technical default. The appeal was against the order of the ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi dated 26.05.2024 for the Asst. Year 2016-17 passed under section 250 of the Income Tax Act, 1961. The assessee raised grounds challenging the lower authorities' order, including the rejection of benefits under sections 11 and 10(23C)(iiiad) of the Act, and the charging of interest under sections 234A, 234B, and 234C.The counsel for the assessee referenced a previous decision of the ITAT, Ahmedabad in the case of Association of Indian Panelboard Manufacturer Vs. DCIT, where a similar claim was rejected but later reversed by the Hon'ble Jurisdictional High Court. The High Court held that filing Form no. 10B, though mandatory, was procedural in nature, and the availability of the audit report before the assessment satisfied the legal requirement. The High Court concluded that the non-filing of the audit report along with the return of income was a procedural omission and not an impediment to claiming exemptions under sections 11(1) and 11(2) of the Act.The ld. DR relied on the order of the ld.CIT(A), while the Tribunal considered the decision of the Hon'ble jurisdictional High Court and found that the assessee had met the legal requirements. Consequently, the Tribunal set aside the orders of the Revenue authorities and allowed the grounds of appeal.In conclusion, the Tribunal's decision was based on the interpretation of the law as clarified by the Hon'ble Jurisdictional High Court, emphasizing that the filing of Form no. 10B and the audit report was procedural and not substantive in nature. The Tribunal ruled in favor of the assessee, granting the exemptions under sections 11(1) and 11(2) of the Act, and overturning the decisions of the Revenue authorities.

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