TaxTMI 
TaxTMI 
2024 (12) TMI 1780
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.... is that the assessee being a trust filed its return of income u/s 139(4a) and on the same date the assessee has submitted auditors report in form No. 10B. While processing the return of income the AO rejected the exemption claimed u/s 11 of the Act for the delay in filing the audited report in form no. 10B. 3. The assessee preferred an appeal before the Ld. CIT(A) wherein also the appeal of the assessee has been dismissed by holding that there was a delay in filing form no. 10B hence the assessee is not entitled to claim exemption u/s 11 of the Act. Being aggrieved and dissatisfied the impugned order the assessee preferred the appeal before us. 4. The Ld. Counsel for the assessee challenges the impugned order by submitting that th....
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.... that filing of form No. 10B is a procedural provision and not directory in nature. On perusal of the order of Ld. CIT(A) it appears to us that there was a delay in filing from no. 10B and due to this claim of exemption has been denied. The assessee has submitted that due to the mistake on the end of income tax department initially the assessee was confused and delayed in getting up accounts audited for filing 10B. According to the assessee, the delay in filing 10B was mainly in the technical mistake in certificate itself which has been rectified later. We have gone through the order passed by the Co ordinate Bench of Kolkata and find that the Co-ordinate Bench, Kolkata in Manav Seva Trust Vs. AO, Ward-1(4), Kolkata in ITA No. 940/Kol/2024 ....
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....elay in filing of Form-10B deserves to be condoned. In fact, some relevant portions from the said order deserves to be extracted as under: "● Admittedly, Petitioner is a charitable trust and had been filing its returns and Form 10B for AY 2015-16, for AY 2017-18 to AY 2021-22 within the due dates. On this ground alone, delay condonation application should have been allowed because the failure to file returns for AY 2016-17 could be only due to human error. Even in the impugned order, there is no allegation of mala fide. As held by the Gujarat High Court in Sarvodaya Charitable Trust v. ITO (Exemption) [2021] 125 taxmann.com 75/278 Taxman 148, the approach in the cases of the present type should be equitious, balancing and jud....
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....o realize its mistake and filed a condonation request only after Centralised Processing Centre ("CPC") sent an intimation about non-filing of Form 10B. [Para 8] ● Having considered the matter in its entirety, one is satisfied that the delay was not intentional or deliberate. Petitioner cannot be prejudiced on account of an ignorance or error committed by professional engaged by Petitioner. Respondent No.1 ought to have exercised the powers conferred. [Para 9] ● In the circumstances, this Writ Petition has to be allowed and is hereby allowed in terms of prayer clause. ● Since the delay has been condoned, Respondent shall process Petitioner's returns in accordance with law by giving effect to this ....