ADA Atham Darji Pragati Mandal Vs. DDIT, CPC, Bengaluru

Parties Involved

Facts Summary

The assessee, ADA Atham Darji Pragati Mandal, a Charitable Trust, filed its return of income on 06.02.2021 at ₹NIL. The assessee claimed an accumulation of total income of ₹1,07,066/- being restricted to the maximum of 15% of the total income. The assessee received voluntary contributions of ₹2,87,863/- and other sums of ₹6,24,684/-. The assessee applied ₹9,23,640/- for the objects of the trust and claimed 15% of the accumulation amounting to ₹1,07,066/-. The return of the assessee was processed under section 143(1) of the Act on 30.11.2021, wherein the assessee was assessed at a total income of ₹9,12,547/- and denied the application of the income of the trust. The assessee filed Form No. 10B on 30.01.2021 and preferred an appeal before the learned CIT(A) stating that the assessee was denied exemption under section 11 of the Act as the assessee did not file Form No. 10B in time. The rectification request was also rejected, and therefore, the appeal.…

Legal Issues

• 1. Whether the assessee is entitled to exemption under section 11 of the Act despite the delay in filing Form No. 10B?
• 2. Whether the delay in filing Form No. 10B is a substantive impediment to claiming exemption under section 11 of the Act?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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