ITAT Delhi Restores Section 11 Exemption Case After One-Day Form 10B Delay Is Condoned
ITAT Delhi quashed the denial of Section 11 exemption to the Indian Institute of Foreign Trade after a one-day delay in filing Form 10B was condoned under Section 119(2)(b). The case was remanded to the AO for fresh consideration of the case.
The Indian Institute of Foreign Trade has filed the present appeal in the ITAT Delhi, challenging an order dated June 16, 2025, passed by the CIT(A) Mumbai. The case is related to the Assessment Year 2023-24. The impugned order had upheld the denial of exemption claimed by the assessee under Section 11 of the Income Tax Act.
The assessee had filed an Audit Report in Form 10B on November 01, 2023. The report was submitted one day late to the statutory deadline, i.e., October 31, 2023. During the assessment, the Assessing Officer (AO) treated this non-compliance as a contravention under Section 12A(1)(b), which ultimately led to the rejection of the Section 11 exemption claim.
The CIT(Exemptions) condoned the one one-day delay in filing Form 10B vide an order dated December 18, 2025, passed under Section 119(2)(b). The condonation was granted after considering CBDT Circular No. 16/2024 and the reasonable cause shown by the assessee.
In light of this condonation, the Tribunal set aside the earlier appellate order and remanded the case to the AO. The Assessing Officer (AO) has been directed to re-examine the assessee’s claim for exemption under Section 11, considering the approved delay condonation. The tribunal stated, “We have heard both the parties and perused the material available on record. The Ld. CIT(E) vide his order dated 18.12.2025 u/s 119(2)(b) of the Act, has condoned the delay in filing the Audit Report in Form 10B u/s 119(2)(b) of the Act.”
Further stated, “In view of the condonation of the delay in filing the Audit Report by the Ld. CIT(E), Delhi, we set aside the order of the Ld. CIT(A) and the matter is restored to the AO, and the AO is directed to examine the claim of the assessee for exemption u/s 11 of the Act, after considering the order dated 18.12.2025 of the Ld. CIT(A) condoning the delay of the assessee in filing the Audit Report in Form 10B. Accordingly, the grounds of appeal of the assessee are allowed for statistical purposes.”
In conclusion, the tribunal allowed the assessee’s appeal for statistical purposes, meaning the issue remains open for fresh examination by the Assessing Officer (AO).
Citation: Indian Institute of Foreign Trade Vs DCIT (ITAT Delhi); ITA No:- 4944/Del/2025; 29/01/2026; 2023-24
