2022 (12) TMI 445

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..... 2. In this appeal, the assessee has raised the following grounds: "1. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in holding that exemption under section 11 of Income Tax Act, 1961 denied by CPC Bangalore while processing return under section 143(1) of Income Tax Act, 1961 on mere ground that Form 10B was electronically filed after filling return of income cannot be considered by Ld. Assessing Officer under rectification proceedings under section 154 of Income Tax Act, 1961 as the same is not a mistake apparent from record. 2. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming denial of exemption under section 11 of Income Tax Act, 1961 on account of claim of Revenue....

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....t report in Form 10B was available at the time of filing of return of income, however, due to new procedural and technical requirements of e-filing Form 10B, there was a delay on part of the auditor in uploading the same. The ITO, Exemption Ward vide order dated 09/03/2021, rejected the rectification application filed by the assessee under section 154 of the Act and held that in view of the provision of section 12(1)(b) the assessee has not fulfilled the condition to claim the exemption for the amount applied towards the object of trust on revenue and capital account under section 11 of the Act. 5. The learned CIT(A) vide impugned order dismissed the appeal filed by the assessee holding that issue of allowability of exemption under section....

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....alore denied the exemption claimed under section 11 of the Act and raised a demand of Rs. 75,27,180. It is the plea of the assessee that Form 10B was obtained from the auditor on 15/09/2016, and due to the first year of e-filing Form 10B assessee faced some technical issues causing a delay in uploading the said Form. 9. In the present case, it is undisputed that the assessee trust is registered under section 12AA of the Act for the past 40 years and the said registration is still in existence. It is also not the case of the Revenue that the assessee has ceased to be a religious or charitable institution. Further, it is also not the case of the Revenue that the accounts of the assessee have not been audited by an accountant, and an audit re....

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....f income. 9. We find that the Hon'ble jurisdictional High Court in case of CIT vs. Xavier Kalavani Mandal (P.) Ltd. (supra) held that in order to claim exemption under section 11, the assessee can filed audit report in Form 10B even at later stage either before the Assessing Officer or before appellate authority by showing a sufficient cause. Further, Hon'ble jurisdictional High Court decision in case of Sarvodaya charitable Trust vs. ITO (Exemption) (supra) also held that where the assessee is a public charitable trust registered under section 12A of the Act and substantially satisfied condition for availing benefit of exemption as a charitable could not be denied exemption, the assessee merely on bar of limitation in furnishing ....