2022 (11) TMI 1173

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....nt by the society is whimsical, illegal, unlawful and liable to be set aside. iii. For CIT(A) fails to consider that in the intimation Order under section 143(1) the Audit Report 10B is not mentioned therefore, no scope is given to the assessee for submitting audit report at the time of the assessment therefore, the assessment as well as the Order of CIT(A) is unlawful and liable to be set aside. iv. For that CIT(A) fails to understand that no scope has been given to the assessee to submit the audit report to rectify the defect lying in the return therefore, the Order of the CIT(A) is based on surmises and conjecture and liable to be set aside. v. For that the CIT(A) fails to understand that society is charitable one that has been decided by the Hon'ble Tribunal in the case being No.1078/Kol/2018 and totally exempted from tax liability by virtue of the CBDT Circular No. 7/2015 dated April,23,2015 therefore, order passed by the CIT(A) is liable to be set aside. vi. For that the CIT(A) passed the order without giving any scope to submit additional documents at the time of hearing." 2. Brief facts of the case are that the appellant filed its ....

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.... of intimation order reveals that the appellant did not furnished the audit report in Form No. 10B as per the requirement of section 12A(b) of the Act and this fact is duly incorporated in the intimation order. It has also been verified that the Form 10B has been digitally submitted on 04.12.2020 i.e. much after the due date for filing of return of income. In this matter, it is an undisputed fact that the appellant failed to furnish the requisite Form No. No. 10B on or before the tiling of income tax return for the present assessment year and non-complied with the provision of 12A(b) of the Act. The appellant's plea is that the total revenue expenditure Rs. 3,07,97,324/- against the aggregate income earned in reference to sections 11 and 12 of Rs. 3,15,60,828/-, which is also shown in the audit report needs to be duly allowed by the AO and denial of the same is erroneous in nature. In this context, it is pertinent to note that the AO has very limited power for adjustment while processing the return of income u/s 143(1) of the Act. In fact, the CBDT has issued circular/instruction from time-to- time for streamlining the delay in filing of audit report in Form 10B by the trust and ex....

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....egard, and with a view to expedite the disposal of applications filed by such trust or institution for condoning the delay in filing Form No. 10B-and in the exercise of the powers conferred under section 119(2) of the Act, the Central Board of Direct Taxes vide Circular No. 10/2019 dated 23rd May, 2019 and Circular No. 28/2019 dated 27th September, 2019 both issued vide F.No. 197/55/2018-ITA-l has directed that:- (i) The delay in filing of Form No. 10B for A.Y. 2016-17 and A.Y. 2017-18, in all such cases where the Audit Report for the previous year has been obtained before the filing of return of income and has been furnished subsequent to the filing of the return of income but before the date specified under section 139 of the Act is condoned. (ii) In all other cases of belated applications in filing Form No. 10B for years prior to AY. 2018-19, The commissioner of Income-tax are authorized to admit and dispose off by 31-3-2020 such applications for condonation of delay u/s 119(2)(b) of the Act. The Commissioner will while entertaining such belated applications in filing Form No. 10B shall satisfy themselves that the assessee was prevented by reasonable cause from....

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....y Board vide CBDT Circular No. 2/2020 as under: "Under the provision of section 12A of Income-tax Act. 1961 (hereafter 'Act') where the total income of a trust or institution as computed under the Act without giving effect to the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income tax in any previous year, the accounts of the trust or institution for that year have to be audited by any accountant as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income is required to furnish along with the return of income for the relevant assessment year the report of such audit in the prescribed from duly signed and verified by such accountant and setting forth such particulars as may be prescribed. 2. As per Rule 17B of the Income-tax Rules, 1962 (hereafter 'Rules') the audit report of the accounts of such a trust or institution is to be furnished in Form No. 10B. As per Rule 12(2) of the Rules, such audit report is to be furnished electronically. The failure to furnish such report in the prescribed from along with the return of income results in disentitlement of ....