ITAT Allows Exemption u/s 11 to Temple, Holds 28-Day Delay in Filing Form 10BB Not Fatal [Read Order]
The ITAT held that the lower authorities erred in denying the exemption and directed the AO to allow the claim under Section 11 of the Income Tax Act
![ITAT Allows Exemption u/s 11 to Temple, Holds 28-Day Delay in Filing Form 10BB Not Fatal [Read Order]](https://images.taxscan.in/h-upload/2025/07/29/2070464-itat-allows-exemption-section-11-to-temple-itat-itat-allows-exemption-taxscan.webp "ITAT Allows Exemption u/s 11 to Temple, Holds 28-Day Delay in Filing Form 10BB Not Fatal [Read Order]")
The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) Hyderabad Bench has allowed an appeal filed by Sri Ramalingeswara Swamy Temple and held that a 28-day delay in filing the audit report in Form 10BB should not deny the temple exemption under Section 11 of the Income Tax Act, 1961. Coming to the facts of the case, in Assessment Year 2023-24, the temple,...
The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) Hyderabad Bench has allowed an appeal filed by Sri Ramalingeswara Swamy Temple and held that a 28-day delay in filing the audit report in Form 10BB should not deny the temple exemption under Section 11 of the Income Tax Act, 1961.
Coming to the facts of the case, in Assessment Year 2023-24, the temple, registered under Sections 12A and 12AA of the Income Tax Act, had filed its return declaring "Nil" income after claiming exemption under Section 11. However, the assessee temple filed the mandatory audit report in Form 10BB on 28-11-2023, missing the due date of 31-10-2023 by 28 days. The assessing officer (AO) processed the return under Section 143(1) and denied the exemption, determining the temple’s total income at Rs. 1,13,40,607. The denial was only based on the delayed filing of Form 10BB of the Income Tax Act.
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Aggrieved by the above order, the assessee appealed before the Commissioner of Income Tax (Appeals) [CIT(A)], which upheld the Assessing Officer’s order. The CIT(A) relied on the Supreme Court’s ruling in Pr. CIT vs. Wipro Ltd in Civil Appeal No.1449 of 2022, dated 11/07/2022, in which it was held that timelines for filing declarations are mandatory. The temple then approached the ITAT, arguing that the audit report was submitted before the assessment order was passed and that the delay was minimal.
The bench held that while filing the audit report on time is ideal, a minor delay should not be fatal if the report is available to the assessing officer before the order is passed. The tribunal noted that the assessee had also filed a condonation petition for the delay, which was pending adjudication. The ITAT held that the lower authorities erred in denying the exemption and directed the AO to allow the claim under Section 11 of the Income Tax Act.
The bench, comprising Shri Manjunatha G. (Accountant Member) and Shri Ravish Sood (Judicial Member), set aside the order passed by the lower authorities and allowed the appeal.
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