TaxTMI 
TaxTMI 
2023 (8) TMI 914
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....Income Tax Act, 1961 (hereinafter referred to as the "Act' for short). 2. The grounds raised in the appeal are as under: "1. The rectification order u/s. 154 is bad in law. 2. The CPC, Bangalore and the ld.CIT(A), NFAC, Delhi have erred in law as well as on facts in not considering belated filed Form 10B for giving exemption u/s. 11 & 12 of the Act." 3. As is evident from the grounds, the sole issue raised by the assessee in its appeal is denial of exemption under sections 11 and 12 of the Act on the ground that the assessee has filed form no. 10B belatedly and not filed the same along with filing of the return of income. 4. Brief fact of the case is that the assessee is a public charitable trust registered under ....
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....galore with a request for rectification and grant of exemption. The same was rejected by the AO. He submitted that the ld.Revenue Authorities failed to appreciate that various higher judicial authorities have dealt with similar issue and held that nonfiling of audit report by charitable trust in form no.10B is merely a procedural defect and where such defect had been removed by filing Form No.10B with rectification application under section 154, the assessee was to be given benefit under section 11. For this proposition he relied on various case laws as under: i) CIT Vs. Rai Bahadur Bissesswarlal Motilal Malwasie Trust, (1992) 195 ITR 825 (Calcutta HC); ii) Sarvodaya Charitale Trust Vs. ITO (Exemption), (2021) 125 taxmann.....
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.... No.10B, the assessee immediately e-filed the form 10B on 11.6.2019 and also filed a rectification application on 14.6.2019. In other words, the ld.Revenue authorities had at their command the Form No.10B while deciding the rectification application on 14.6.2019. 8. The appellate proceedings being the continuation of assessment proceedings merely because the assessee has not furnished the audit report along with return of income, but filed during the assessment proceedings, and available even during the appellate proceedings, it cannot be stated that the assessee has failed to comply with the provisions so as to deny rightful claim, which otherwise was allowable. The Hon'ble Jurisdictional High Court in a recent decision in Social Securi....
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....ut 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 legislature has conferred wide discretionary powers to condone such delay . Applying the said principle, the petition is allowed. The impugned order passed by respondent dated 12-3-2021 is quashed and aside. The impugned order of rectification under section 154 of the Act dated 25-1-2019 is also quashed and set aside. The application for condonation of delay filed by the petitioner before the respondent is allowed." We also find, yet in another case on identical issue the Hon'ble jurisdictional High Court in Associat....