TaxTMI 
TaxTMI 
2025 (2) TMI 762
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....assed for A.Y. 2020-21. 2. The assessee has taken the following grounds of appeal:- "1. The order passed by lower authorities is bad in law and required to be quashed. 2. Ld. NFAC erred in law and on facts in treating corpus donation of Rs. 17,96,000/- as voluntary donation. 3. Ld. NFAC erred in law and on facts in not allowing application of income Rs. 49560/- while computing income. 4. Ld. NFAC ought to have computed income of the trust on commercial principle. 5. Ld. NFAC ought to have considered fact that filing of Form 10B is not applicable to appellant trust. 6. Ld. NFAC ought to have considered fact that filing of Form 10B is directory in nature and not mandatory as per various....
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....te the corpus donation of Rs. 17,96,000/-. However, the JCIT(A) dismissed the appeal of the assessee by holding that from the documents available on record, the assessee filed it's return of income for the year on 31.05.2021, which was beyond the due date of filing return of income, (which was 15.02.2021). Further, JCIT(A) observed that the assessee had not filed Form 10B, which the assessee was required to do, if the total income of the Trust without giving effect to the provision of Sections 11 & 12 exceeds the maximum amount which is not chargeable to tax. The JCIT(A) held that failure to furnish such Audit Report in Form 10B within the prescribed Form, results in disentitlement of the trust from claiming exemption under Section 11 & 12 ....
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....f Shree Swaminarayan Charitable Trust vs. ITO in ITA No. 1106/Ahd/2024, wherein the ITAT is held that the late submission of Form 10B is a procedural default and once the assessee has subsequently filed Form 10B, additions cannot be made in the hands of the assessee on account of non-filing of Form 10B within the prescribed time. 7. In response, the Ld. D.R. placed reliance on the observations made by JCIT(A) in the appellate order. 8. We have heard the rival contentions and perused the material on record. 9. On going through the facts of the instant case, we observe that the adjustments made by CPC have been confirmed by the JCIT(A) on three grounds. Firstly, the assessee had not filed the return of income within the prescribed ti....
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....e. 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 vs. ITO in ITA No. 1106/Ahd/2024, wherein the ITAT has made the following observations: "3. The issue before me pertains to delayed submission of Form no.10B which ld.counsel for the stated to be a technical default. He further submitted that ld.Bench of the ITAT, Ahmedabad rejected similar claim in the case of Association of India....
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....eport alongwith return of income which was at the best procedural omission, could never to an impediment in law in claiming the exemption. 4. On the other hand, the ld.DR relied on the order of the ld.CIT(A). 5. Heard both the parties. 6. I have gone through the record and the orders of the Revenue authorities. Keeping in view the decision of the Hon'ble jurisdictional High Court in the case of Association of Indian Panel Board Manufactureres (supra), and the assessee having satisfied the requirement of the law, I set aside the impugned orders of the Revenue authorities, and allow the grounds of appeal." 11. The ITAT Ahmedabad in this case has held that delay in submission of Form No. 10B is a procedural defect....