IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER Assessment year : 2014-15 Marathwada Association of Small ITO (Exemption), Scale Industries & Agriculture Aurangabad Vs.

Plot No.25, MIDC Area, Chikalthana, Aurangabad - 431210 PAN: AAATI0883K (Appellant) (Respondent)

Assessee by : Ms. Shubhada L Joshi Department by : Shri Ramnath P Murkunde Date of hearing : 20-08-2025 Date of pronouncement : 26-08-2025

O R D E R

PER R.K. PANDA, VP:

This appeal filed by the assessee is directed against the order dated

27.02.2025 of the Ld. Addl / JCIT(A)-1, Gurugram relating to assessment year

2014-15.

2. Although a number of grounds have been raised by the assessee, however, these all relate to the order of the Ld. Addl / JCIT(A) in upholding the denial of exemption u/s 11 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the Assessing Officer on the ground that Form 10B was not electronically uploaded at the time of filing of the return.

3. Facts of the case, in brief, are that the assessee filed its return of income on 14.07.2015 declaring Nil income. The ITR was processed on 30.03.2017 by raising a demand of Rs.98 lakhs. Since the assessee did not pay any tax against the demand so raised u/s 143(1) a recovery letter was issued to the assessee in response to which the assessee submitted a rectification application stating that the demand was raised due to non filing of Form 10B along with the ITR within due date. It was argued that the CPC denied the exemption u/s 11 of the Act due to non-filing of Form 10B in time. On verification of the order u/s 143(1) and the financial statements submitted by the assessee the Assessing Officer noticed that the gross receipt for the year under consideration was taxed. Since the assessee did not file its Form 10B in time within the meaning of section 139 the Assessing Officer rejected the rectification application filed by the assessee.

4. In appeal the Ld. Addl / JCIT(A) upheld the action of the Assessing Officer. 5. Aggrieved with such order of the Ld. Addl / JCIT(A), the assessee is in appeal before the Tribunal.

6. The Ld. Counsel for the assessee at the outset referring to the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Xavier Kelavani Mandal (P.) Ltd. (2014) 41 taxmann.com 184 (Gujarat) submitted that the Hon’ble High Court in the said decision has held that in order to claim exemption under section 11, the assessee can file audit report in Form No.10B even at a later stage either before Assessing Officer or before appellate authority by showing sufficient cause.

7. Referring to the decision of the Hon’ble Gujarat High Court in the case of Sarvodaya Charitable Trust vs. ITO (2021) 125 taxmann.com 75 (Guj) she submitted that the Hon’ble High Court in the said decision has held that where the assessee, a public charitable trust registered under section 12A, had substantially satisfied the condition for availing benefit of exemption as a trust, it could not be denied exemption merely on bar of limitation in furnishing audit report in Form No.10B.

8. Referring to the decision of the Pune Bench of the Tribunal in the case of DCIT vs. Audyogik Shikshan Mandal (2022) 195 ITD 153 (Pune-Trib.) she submitted that the Tribunal in the said decision has held that where audit report could not be filed by the assessee-trust before Assessing Officer due to reason beyond control but it was filed belatedly before Commissioner (Appeals) during appellate stage in prescribed Form No.10B as was required under section

12A(1)(b), the claim of exemption under section 11 was to be allowed.

9. Referring to the decision of the Mumbai Bench of the Tribunal in the case of Shree Bhairav Seva Samiti vs. ITO (2023) 101 ITR (T) 708 (Mumbai-Trib.) she submitted that the Tribunal in the said decision has held that where the assessee- trust had complied with procedural requirement of obtaining and filing Form 10B, exemptio