TaxTMI 
TaxTMI 
TaxTMI 
2023 (7) TMI 282
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....2018. The CPC vide office communication dated 22-08-2018 and 09-10-2018 sent to the registered email communication address of the assessee directing to file Form No. 10B on or before 07-11-2018. 2.1. In response to the office communication by CPC, the assessee uploaded Form No. 10B on 17-10-2018. However by Intimation order passed by CPC, u/s. 143(1) dated 27-03-2019 denied the benefit of exemption u/s. 11 of the Act observing as follows: " As per Section-12A(1)(b) of Income tax Act read with 1st Proviso to Rule 12(2) of the Income Tax Rules, where the total income of the trust or institution without giving effect to the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income tax, the audit report in Form-10B has to be E-filed along with the return of income. Since assessee has not E-filed the Audit Report in Form 10B along with or before filing of the Return of income, the exemption u/s.11 i.e. Sl.No. 1 & Sl. No. 4(i) to 4(viii) in Schedule Part B- it is not allowed." 3. Aggrieved against the same, the assessee filed Rectification application dated 16-11-2019 with the Jurisdictional Assessing Officer (JAO). The same was rejected by ....
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....tion u/s. 143(1) denying the claim of exemption u/s. 11 on the ground that Audit Report in Form No. 10B was not filed along with the Return of Income and determined the total income of the assessee at Rs. 74,18,162/-. 5.2. Ld. Counsel further submitted that the rectification petition was also rejected on the ground that Audit Report in Form 10B was not filed before the date specified u/s. 139 of the Act. Thus the assessee relied upon decision of the SMC Bench of this Tribunal in the case of Shardaben Education Trust Vs. ITO (Exemption) in ITA No. 2312/Ahd/2018 dated 16-11-2022 and Mumbai Bench decision in the case of Shree Bhairav Seva Samiti Vs. ITO (Exemption) reported in [2023] 149 taxmann.com 478 and recent Judgment of the Hon'ble High Court of Gujarat in the case of Association of Indian Panel Board Manufacturer Vs. DCIT in Tax Appeal No. 655 of 2022 sated 21-03-2022 and pleaded to set aside the orders of the lower authorities and grant the exemption u/s. 11 of the Act. 6. Per contra, the Ld. Sr. D.R. Shri Atul Pandey appearing for the Revenue supported the orders passed by the Lower Authorities and submitted that the same does not require any interference. 7. We have given....
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.... 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 report in Form 10B has not been obtained. Only on the technical aspect that Form 10B was not filed along with the return of income for the relevant assessment year, the exemption claimed under section 11 of the Act has been denied to the assessee without going into the merits. Further, no relief was granted to the assessee even when the assessee filed the application under section 154 of the Act. We find that while dealing with similar facts the Co- ordinate Bench of the Tribunal in Trinity Education Trust vs ITO, ITA No. 669/Srt./2018, vide order dated 28/02/2022, decided the issue in favour of the taxpayer by observing as under: "8. We have considered the rival submissions both the parties and perused the order of lower authorities carefully. We find that there is no dispute that at the time of filing of return of ....
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....ench of the Tribunal, the Assessing Officer is directed to decide the claim of the assessee under section 11 on merits, after accepting the Form 10B filed by the assessee. 8.3. Further very same Bench of this Tribunal in the case of ITO Vs. Shri Laxmanarayan Dev Shrishan Seva Khendra in ITA No. 410/Ahd/2022 dated 19-05-2022 held as follows: "....6. We have given our thoughtful consideration and perused the materials available on record. The moot question whether it is permissible to the assessee to produce the audit report at the appellate stage is correct in law is been decided by the Jurisdictional High Court in the case of CIT Vs. Gujarat Oil & Allied Industries Ltd. [1993] 201 ITR 325 (Guj.) wherein it is held that the provisions regarding furnishing of audit report along with the return has to be treated as a procedural provision. It is directory in nature and its substantial compliance would suffice. Thus the Hon'ble Court Held that the benefit of exemption should not be denied merely on account of delay in furnishing the same. 6.1. Similarly in the case of Social Security Scheme of GICEA (cited supra) the Hon'ble Jurisdictional High Court held as follows: 5. ".....the....