Abid Ali Khan Educational Trust vs. DCIT

Parties Involved

Facts Summary

The assessee, Abid Ali Khan Educational Trust, filed an appeal against the order of the Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi, which disallowed the exemption claimed by the Trust under section 11 of the Income Tax Act, 1961. The Trust contended that the requirement of filing Form 10B was merely directory in nature and failure to furnish the same before the due date cannot be so fatal as to deny the claim of exemption. The Trust relied on the decision in the case of ITO vs. Ramji Mandir Religious and Charitable Trust. The respondent submitted that the assessee has to file condonation application under section 119(2) of the Act before the concerned CIT with the reasons for belated filing of the audit report. The Tribunal reviewed the record and decided that the requirement of filing Form 10/10B is merely directory in nature and failure to furnish Form 10/10B before the due date cannot be so fatal as to deny the claim of exemption under section 11(2) of the Act.…

Legal Issues

• 1. Whether the requirement of filing Form 10/10B is merely directory in nature?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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