Vetal Bambarde Vibhag Shikshan Prasark Mandal Vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Vetal Bambarde Vibhag Shikshan Prasark Mandal, a charitable trust engaged in providing education, filed an income tax return for the Assessment Year 2015-16 declaring total income at Rs. Nil. However, the assessee was denied deduction under section 11 of the Income Tax Act due to the non-filing of Form 10B along with the return of income. The assessee had submitted the Audit Report in Form No. 10B on 15.09.2015 but failed to submit it with the return of income. The assessee subsequently filed Form 10B on 20.11.2023. The assessee claimed that the submission of Form 10B is a procedural requirement and not a condition precedent for availing exemption under section 11. The assessee also argued that it is substantially financed by government grants, making it eligible for exemption under section 10(23C)(iiiab).…

Legal Issues

• 1. Whether the non-filing of Form 10B along with the return of income is a condition precedent for availing exemption under section 11?
• 2. Whether the assessee is substantially financed by government grants?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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