Tribunal grants exemption under Section 11 I.T. Act despite audit report delay, CIT(E) condonation crucial.

The Tribunal allowed the assessee's appeal, granting exemption u/s 11 of the I.T. Act. Despite the CPC's denial due to a delay in filing the Audit Report, the Tribunal recognized the condonation of the delay by the CIT(E), enabling the assessee to claim the exemption. The Tribunal's decision favored the assessee, emphasizing compliance with legal provisions and the condonation granted by the CIT(E).

---

---

Issues involved:
The judgment involves the issue of denial of exemption u/s 11(1) of the I.T. Act by the CPC due to a delay in filing the Audit Report in Form No.10B by the assessee.

Comprehensive details of the judgment:

Issue 1: Denial of exemption u/s 11(1) of the I.T. Act

The appeal was filed by the assessee against the CIT(A)'s order upholding the CPC's decision to deny the claim of exemption u/s 11(1) of the I.T. Act. The assessee, a temple trust registered u/s 12AA, filed the return of income for the assessment year 2018-2019 claiming exemption u/s 11. However, the CPC denied the exemption as the Audit Report in Form No.10B was filed 5 days after the return of income. The CIT(A) rejected the appeal, stating that the delay in filing the Audit Report was not condoned by the CIT(Exemption).

The assessee then appealed to the Tribunal, submitting a paper book with relevant documents including the certificate u/s 12A, computation of income, financial statements, Form 10B, and the order of the CIT(E) condoning the delay in filing the Audit Report. The assessee argued that the delay was condoned by the CIT(E) u/s 119(2)(b) of the I.T. Act, making them eligible for the exemption u/s 11.

After hearing both parties, the Tribunal noted that the Audit Report was filed 5 days after the return of income, leading to the CPC's denial of exemption u/s 11. However, the Tribunal observed that the delay was condoned by the CIT(E) as per the order issued, allowing the assessee to claim exemption u/s 11, subject to meeting other conditions. Consequently, the appeal by the assessee was allowed, and they were granted the exemption u/s 11 of the I.T. Act.

In conclusion, the Tribunal's judgment favored the assessee, acknowledging the condonation of the delay in filing the Audit Report and allowing the claim of exemption u/s 11 of the I.T. Act based on the provided evidence and legal provisions.

---