TaxTMI 
TaxTMI 
2023 (4) TMI 1158
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....eturn of income was processed and intimation u/s. 143(1) of the Act was issued determining the total income of Rs.40,93,280/-. The contention of the assessee was that the adjustment made by the CPC under intimation is in the nature of apparent mistakes and the same were not adjudicated u/s. 154 application also. As it appears from the record, the CPC made said adjustment for not filing audit report in Form 10B for the year under consideration. The assessee contended the request was made to the CIT(Exemption) on 20-03-2021 to condone the delay in filing Form 10B. We note that the assessee itself contended that the said delay condonation petition was rejected by the CIT(Exemption) vide its order dated 27-03- 2021 by observing that the assessee has not filed the audit report electronically. In the impugned proceedings, the CIT(A) considering the Circular No. 2/2020 dated 03-01-2020 issued by the CBDT held that the assessee is not entitled for deduction in view of non-filing of Form 10B along with the return of income. The relevant portion of the impugned order from pages 9 to 13 are reproduced for ready reference : "4. Decision: I have carefully considered the facts on record....
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....m No. 10B on or before the filing of income tax return for the present assessment year. The imperative condition for availing exemption u/s 11 and 12 of the Act is due submission of form 10B along with the return of income filed u/s 139(1) of the Act. In fact, the CBDT has issued circular/instruction form time-to-time for streamlining the delay in filing of audit report in Form 10B by the trust and examining the reason for non-filing of Form No. 10B in time wherein the CBDT has delegated the power for accepting the belated audit report to the Income Tax Officer after recording reasons for accepting a belated audit report vide CBDT Instruction F. NO. 267/482/77-IT(PART), Dated 9-2-1978, which is reproduced as under:- 1. The Board have considered whether the requirement under section 12A(b) of filing audit report 'along with the return of income' is mandatory so as to disentitle the trust from claiming exemption under sections 11 and 12 in case of omission to furnish such report in the prescribed form along with the return. 2. Normally, it should be possible for a charitable or religious trust or institution to file the auditor's report along with the re....
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....ol of the assessee. 4. Accordingly, in supersession of earlier Circular/Instruction issued in this regard, and with a view to expedite the disposal of applications filed by such trusts or institutions for condoning the delay in filing Form no. 10B and in exercise of the powers conferred under section 119(2) of the Act, the Central Board of Direct Taxes hereby directs that: (i) The delay in filing of Form no. 10B for AY 2016-17 and AY 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. I 013 for years prior to AY 20 I 8- 19, the Commissioners of Income-tax arc authorized to admit such applications for condonation of delay u/s. I 19(2)(b) of the Act. The Commissioners will while entertaining such belated applications in filing Form no. 10B shall satisfy themselves that the assessee prevented by reasonable cause from filing such application within the stipulated time. Further,....
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....sal 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-1 has directed that:- (i) The delay in filing of Form No. 10B for AY. 2016-17 and AY. 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 filing such application within the stipulate....