2019 (5) TMI 1865

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.... the Ld.CIT(A) has erred in deleting the disallowance made by AO of the claim for exempt ion of Rs. 94,98,048/ - made by the assessee u/s. 11 o the I. T. Act, 1961 despite the fact that the assessee failed to file audit report in form 10B alongwith return of income as per the provisions of sect ion 12(1) (b) of the Act ." 2. Brief facts of the case as noted by the Ld. CIT(A) are that the assessee society for education has filed its return of income on 13.09.2014 declaring total income as 'nil' after claiming the exemption of Rs. 14,98,048/- u/s. 11 of the Income Tax Act, 1961 (hereinafter referred to as the "Act"). Along with the return of income the audit report in the form 10B was not filed on line (electronically updated) as required ....

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....tion u/s. 11 is not allowed. In view of the above, this rectification request is rejected and Return stands transferred to the Assessing Officer. Kindly contact our jurisdictional Assessing Officer for further details." 3. Aggrieved by the aforesaid action of the DCIT, CPC, Banglore the assessee preferred and appeal before the Ld. CIT(A), who gave relief to the assessee taking note that the assessee had obtained the audit report in Form 10B on 13.08.2014 and return of income was filed by the assessee on 30.09.2014. Thus, according to Ld. CIT(A), at the time of making the claim of exemption u/s. 11 of the Act in the return of income filed by the assessee, the compliance as required by the law i.e. of obtaining the audit ....