ITAT Kolkata Grants Tax Benefit to Charitable Trust Despite 28-Day Audit Report Delay Amid Covid-19 Issues.

The ITAT Kolkata allowed the appeal by the assessee, a public charitable trust, granting the benefit of Section 11 of the Income Tax Act despite a 28-day delay in filing the audit report in Form 10B. The Tribunal acknowledged technical issues during the Covid pandemic and deemed the delay insignificant. The decision aligned with CBDT Circulars and prior case law, emphasizing justice and fairness, ultimately permitting the claimed tax benefit for the Assessment Year 2020-21.

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Issues Involved:
The denial of benefit u/s 11 of the Income Tax Act due to a delay in filing the audit report in Form 10B.

Summary:
The Appellate Tribunal ITAT Kolkata heard an appeal by the assessee against the order of the Commissioner of Income Tax (Appeals) concerning the denial of the benefit of Section 11 of the Act for the Assessment Year 2020-21 due to a delay in filing the audit report in Form 10B. The assessee, a public charitable trust, faced a delay of 28 days in uploading the audit report, attributed to technical glitches and changes in filing procedures during the Covid pandemic. The assessee filed the income tax return within the due date but uploaded the audit report late. The Tribunal considered the Circulars issued by the CBDT allowing condonation of delay in filing Form 10B beyond 365 days, indicating awareness of technical issues faced by taxpayers. Relying on precedents and considering the delay insignificant, the Tribunal allowed the benefit of Section 11 to the assessee, emphasizing the larger interest of justice. The decision was consistent with a previous case where a similar issue was resolved in favor of the assessee. Consequently, the appeal was allowed, granting the benefit of Section 11 to the assessee as claimed in the income tax return.

Separate Judgment:
No separate judgment was delivered in this case.

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