TaxTMI 
TaxTMI 
2023 (7) TMI 293
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....ome Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2017-18. 2. The solitary issue involved in this appeal is late filing of Audit Report u/s. 12A(1)(b) in the prescribed Form 10B thereby denying the exemption u/s. 11 of the Act. 2.1. The brief facts of the case is that the assessee is a Public Charitable Trust engaged in various educational activities and running of Schools and Yogashram. The assessee trust is registered as a charitable organization u/s. 12AA of the Act with effect from 01.04.2004 and also approved for the purpose of Section 80G. The assessee filed its Return of Income for the Assessment Year 2017-18 on 11.10.2017 declaring NIL income. However the assessee not uploaded the Audit....
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....) 5. CIT Vs Andhra Pradesh State Road Transport Corporation (2006) (285 ITR 147) (AP) 6. Hiranandani Foundation Vs Joint DIT (2013) (359 ITR 29) (Bombay) 7. CIT Vs Devradhan Madhavlal Genda Trust (1998) (230 ITR 714) (MP) 2.5. Thus the assessee pleaded based on various judicial pronouncements that it is a sufficient compliance with the procedure, if the Audit Report u/s. 12A(1)(b) is filed at any stage before the completion of assessment or even at the appellate stage. Thus the CPC cannot deny the exemption available u/s. 11 of the Act. The Ld. CIT(A) accepted the contention of the assessee and held that the assessee Trust is eligible to avail the exemption u/s. 11 of the Act as claimed in the Return of Income for the Assessment ....
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.... to claim exemption u/s. 11 of the Act. Thus the Ld. CIT(A) erred in allowing the appeal in favour of the assessee. 5. Per contra, the Ld. A.R. Shri Nitesh Thakkar appearing for the assessee strongly supported the order passed by the Ld. CIT(A) and further relied upon Judgment of the Gujarat High Court in the case of Sarvodaya Charitable Trust Vs. ITO(Exemption) [2021] 125 taxmann.com 75 (Gujarat) and CIT Vs. Xavier Kelavani Mandal (P.) Ltd. [2014] 41 taxmann.com 184 (Gujarat) and Social Security Scheme of GICEA Vs. CIT(Exemptions) [2023] 147 taxmann.com 283 (Gujarat) wherein it is held that the assessee trust substantially satisfied conditions for availing exemption u/s. 11, it should not be denied exemption merely on bar of limitation es....
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....gh mandatory in nature the substantial compliance is required to be made. In the case of Sarvodaya Charitable Trust (supra) the assessee had produced the audit report after processing the return under section 143(1). This Court in the said order has observed that the approach of the authority in these type of cases should be equitable, balancing and judicious. Technically speaking, respondent No. 2 might be justified in denying the exemption under section 11 of the Act by rejecting such condonation application, but an assessee, which is a public charitable trust for past 30 years which substantially satisfies the conditions for availing such exemption, should not be denied the same merely on the bar of limitation especially when the legisla....