2024 (2) TMI 629

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....t to the Assessment Year 2021-2022. 2. The only grievance raised by the assessee is that the ld. CIT(A) erred in not granting exemption u/s 11 of the Act on the reasoning that there was a delay in filing Form 10B i.e. audit report 3. The necessary facts are that the assessee is a public charitable trust and claimed to be engaged in carrying out charitable activities. It filed its return of income declaring income at Rs. 1,83,230.00 dated 8-1-2022 However, while processing the return u/s 143(1) of the Act, the exemption claimed u/s 11 of the Act was denied and the income was assessed at Rs. 2,68,841.00 only. 4. Aggrieved assessee preferred an appeal before the ld. CIT(A) who dismissed the same while observing as under: 82 D....

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....ar no 19/2020 dated 03.11.2020. In the present case the appellant has filed Form 10B belatedly on 30.03.2022. But it appears that appellant trust has not made any application for the condonation of delay in filing form 10B belatedly. Therefore no condonation was granted to the appellant trust to file Form 10B till the date of processing of return of Income. During the appellate proceedings the appellant was specifically asked to provide details of condonation granted by CIT concerned, if any, vide notice dated 2-05- 2023. Though appellant responded to the notice on 5-05-2023 but failed to provide any details regarding condonation of delay granted to the appellant allowing it to file Form 10B belatedly for the year under consideration. The a....

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....r to the Principal Commissioner/Commissioner of Income Tax to admit the application for the condonation of delay u/s 119(2) of the Act with respect to the delay in filing Form 10B for assessment year 2018-19 and subsequent assessment years on merit. Accordingly, it was contended by the ld. AR that the delay should be condoned, and assessee should be granted the exemption u/s 11 of the Act. 7. On the other hand, the ld. DR contended that the assessee for condoning the delay in filing Form 10B of the Act was to move an application before the concerned Income Tax Authorities in pursuance to the CBDT Circular who were authorized to condone the delay after considering the merit of the case. As such, the ld. AR cannot take shelter of CBDT Circ....

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....d itself in yet another way when it observed that The Finance Act, 2015 with effect from 1.4.2016, that is from assessment year 2016-17 changed the legal position. There is no such change which could be said to have altered the legal position. The only change is with regard to compulsory filing of audit report in Form 10B in electronically form which is made mandatory under Rule 12(2) of the Income Tax Rules, 1962 but there is no change with regard to the substantive law about fling of audit report as stated above. 6. The moot aspect that centres around to the requirement of the availability of the audit report when the assessment was undertaken by the Assessing Officer even though the same may not have been filed along with the re....