TaxTMI 
TaxTMI 
2026 (6) TMI 863
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....i dated 15th September 2025 wherein the appeal filed by the assessee against the order passed u/s. 143(1) of the Income Tax Act by the Central Processing Centre Bangalore (the Ld. AO) was dismissed. The assessee is in appeal before us. 2. The fact shows that assessee is a charitable trust registered u/s. 12AA of the Act. The assessee has obtained Audit Report in Form No. 10B on 23rd June 2018. It filed its return of income on 31st August 2018. However, due to oversight as claimed by the assessee, the Audit Report in Form No. 10B could not be uploaded electronically on or before the filing of the return of income i.e. on 31st of August 2018. The assessee came to know about the error and uploaded the Audit Report on 26th March 2025. 3. ....
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....bed date line before the due date of filing the relevant income tax return. It was further stated that according to the provisions of Section 44AB of the Act such report is required to be submitted a month prior to the due date. The assessee has failed to do so. The Ld. CIT-Appeal further suggested that according to the Circular No. 16 of 2024 dated 18.11.2024 the condonation of delay in filing Form No. 10B for assessment year 2018-19 and subsequent years the remedial action lies by filing a condonation petition. If the condonation is granted, the benefit would be allowed. As there is no power left with the CIT-Appeal to interfere, the appeal of the assessee was dismissed. 7. The assessee Ld. Authorized Representative submitted that the ....
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....d under the income tax act itself for filing of the form No. 10 B of the act. The act itself provides that such form is required to be filed in a particular manner on or before the due date of filing of the return of income. A statutory timeline is provided in the act itself. Therefore, how a particular timeline which is provided in the act itself can be said to be directory in nature. He submits that he can understand if rules provide such timeline to file form No. 10 B. He submits that,even if this view is taken that though the timeline for filing form No. 10 B is provided in the act itself, even then it is considered as directory in nature, then even the due date submitted for filing of the return of income should also be considered as d....
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....k. Thus, when the appeal was pending before the Ld. CIT-A, the form No. 10B was available. The Hon'ble Gujarat High Court was also dealing with an identical situation where the form No. 10B for assessment year 2017-18 was filed during the pendency of appellate proceedings, the Ld. CIT-Appeal accepted such form and granted relief to the assessee. On appeal by the revenue before the ITAT this was upheld. On appeal by the revenue u/s. 260A of the Act before the Hon'ble High Court no infirmity was found in the order of the Ld. CIT-Appeal. Thus, the Hon'ble High Court accepted that even if form No. 10B is filed electronically during the pendency of the appellate proceedings before the Ld. CIT-Appeal the assessee cannot be denied benefit of Secti....
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....h provides for requirement of furnishing declaration for claiming exemption under Section 10B of the Act is mandatory but the time limit within which such declaration is to be filed is also held to be mandatory. Relying upon the aforesaid decision, it was submitted that the assessee ought to have filed the audit report in Form 10B of the Act before the due date of filing of the return to claim the exemption under Section 12A of the Act. 5. Reliance placed by the learned Senior Standing Counsel Ms. Maithili Mehta for the appellant on the decision of the Hon'ble Supreme Court in case of Wipro Ltd. (supra) would not be applicable in the facts of the case, as in the facts of the present case, the assessee has claimed the exemption ....
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....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 electronically on 27.02.2021 durin....