2024 (6) TMI 938

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....dit report along with ITR is mandatory w.e.f. 01.04.2016 (Α.Υ. 2016-17) 2. That the Ld. CIT (Appeals) faceless erred in taxing the whole gross receipts of Rs. 96,45,397/- without allowing expenditure claimed/incurred thereon Rs. 96.45,397/-showing NIL income u/s. 10(23C) (iiiad) in the original ITR filed 01.10.2018, without adjudication on the issue of real/ net income to be taxed. Relied on HMV Educational... Trust vs. ITO-ITA No. 9 /Bang/2023- Α.Υ. 2018-19 order dt. 23.03.2023 3. That the Id CIT(Appeals) faceless erred in rejecting the claim u/s. 10(23C)(iiiad), by applying wrongly the case of Goetze India Ltd Vs CIT (2006) 157 Taxman 1(SC) whereas claim already made in the original ITR-154 applications and during the assessment proceedings u/s. 143(3) and further made before the CIT(Appeals) Faceless. 4. That filling return electronically claiming exemption inadvertently u/s 11, but in part B-TI-8C showing -Exemption u/s. 10(23C)(iiiad)-NIL income is not fatal in view of CBDT Circular No. 14 of 1955 dated 11.04.1955 and would not deprive the assessee from exemption, which is otherwise allowable as per law. 5 The app....

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....ssessable as a representative assessee (the total income for this purpose being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1)". We have further analyzed Rule 12 applicable to the matter and reproduced as under:- Rule - 12, Income-tax Rules, 1962 Return of income and return of fringe benefits. 12. (1) The return of income required to be furnished under sub-section (1) or sub-section (3) or sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) or sub-section (4E) or sub-section (4F) of section 139 or clause (i) of sub-section (1) of section 142 or section 148 or section 153A relating to the assessment year commencing on the 1st day of April, 2024 shall,- (g) in the case of a person including a company whether or....

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.... as required under section 12A (1) (b) of the Act. But the same was filed before the processing of return u/s. 143(1) (a) of the Act. Therefore, the CPC incorrectly denied the exemption in the intimation. In the absence of the audit report in Form No. 10B, it can't be said that there was mistake apparent from record in the intimation dated 31.01.2020 as the Form No. 10B was uploaded much before on 14.10.2019. Since there was a mistake apparent from record, the rectification request made by the appellant was not correctly denied. 6. We further deliberated upon Circular No. 2/2020 [F. NO. 197/55/2018-ITA-I], DATED 3-01-2020, which are as under:- "Under the provision of section 12A of Income tax act ,1961 where the total income of a trust or institution as computed under the act without giving effect to the provisions of section 11 and section 12 exceeds the maximum amount which is not chargeable to income tax in any previous year, the accounts of the trust or institution for that year have to be audited by any accountant as defined in the Explanation below sub section (2) of section 288 and the person in receipt of the income is required to furnish along with the return o....

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....ed application in filing Form No. 10B shall satisfy them-selves that the assessee was prevented by reasonable cause from filing such application within the stipulated time. In addition to the above, it has also been decided by the CBDT that where there is delay of up to 365 days in filing form no. 10B for Assessment Year 2018-19 or for any subsequent Assessment Years, the commissioner of Income-Tax are hereby authorized of condonation of delay u/s. 119(2) of the Act and decide on merits. The commission of Income-Tax shall, while entertaining such belated applications in filing Form No. 10B, satisfy themselves that the assessee was prevented by reasonable cause from filing such application within the stipulated time. Circular no. 6/2020 (F. No. 197/55/2018-ITA-I), dated 19.02.2020 Sub: Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Return of Income for A.Y 2016-17,2017-18, and 2018- 19 and Form No.9A and Form No. 10.-Reg. Representations have been received seeking condonation of delay in filing Return of Income by the charitable institutions for the Assessment Year 2016- 17 onwards on the grounds of ....