ITAT Holds Technical Delays Should Not Override Principles of Justice; Condones Form 10B Delay 

The Income Tax Appellate Tribunal (ITAT), Ahmedabad, restored exemption claims under Sections 11 and 12 of the Income Tax Act, holding technical delays should not override the principles of justice.

The assessee had claimed exemption under Sections 11 and 12 of the Income Tax Act. However, it had not furnished Form 10B within the statutory time limit. As a result, the tax authorities issued an intimation dated February 21, 2018, denying the aforementioned claimed exemptions. Later, the assessee furnished Form 10B in November 2023, along with an application seeking condonation of delay in filing Form 10B. However, the tax authorities rejected the request.

The assessee, being aggrieved with the tax authorities’ order, approached the ITAT Ahmedabad, claiming the delay was procedural, not intentionall and should not restrict it from its rightful exemption, especially when it is pursuing remedies like rectification and condonation. The tribunal endorsed the arguments served by the assessee, holding that the delay was not deliberately made and that the assessee had been actively following up on its case.

The tribunal pointed out that technical delays should not override the principles of justice. Considering the same, the tribunal condoned the delay in filing Form 10B and instructed the tax authorities to consider the lately filed form as filed on time. In conclusion, the assessee’s Sections 11 and 12 exemption claim was restored.