TaxTMI 
TaxTMI 
2024 (7) TMI 221
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....08-12-2023, for the Assessment Year (AY) 2022-23 against the intimation/order passed u/s. 143(1) of the Income Tax Act, 1961 ("the Act" in short) by CPC, Bengaluru and the Assessee is in Cross Objection thereof. Facts of the case: 2. The assessee is a charitable Trust registered u/s. 12(1)(ac)(i) of the Act, perusing educational activities running schools, etc. The assessee was regularly filing its return as a charitable Trust claiming exemption under sections 11 & 12 of the Act and the same were accepted in the past. AY 2022- 23, the assessee filed its return of income declaring NIL income. 2.1. The return was processed by CPC, Bengaluru vide Intimation u/s. 143(1) of the Act dated 31.03.2023, disallowed entire application (expens....
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....is in appeal before us and the Assessee filed a cross objection against the same. The grounds raised by both the parties are as follows: Grounds raised by Revenue in the appeal: "1. Whether, on the facts and circumstances of the case, Ld.CIT(A) has erred in admitting alternate claim of assessee u/s. 10(23C)(iiiad) without providing opportunity of hearing to the Assessing Officer. 2. Whether, on the facts and circumstances of the case, Ld.CIT(A) has erred in allowing the exemption u/s 10(23C)(iiiad), when as per memorandum of Association (MOA) of trust, it is not existing solely for educational purpose, which is against the principle laid down by Hon'ble Supreme Court of India, New Delhi in the case of New Noble Educ....
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....otindra Ochhavlal Parikh filed the Form 10B on 06-10-2022 and 07-10-2022 as per transaction ID FOS001767378261 and FOS001772204246 respectively, however, the same could not be accepted by the assessee. The assessee raised grievance with the CPC which provided some resolution and closed the grievance, but the assessee was not able to complete the process due to some technical issues. The Ld.Counsel for the assessee also submitted the copy of screenshots and grievance acknowledgement number 8808808 dated 07-10-2022. The assessee also submitted these documentary evidence to the Ld.CIT(A), but the Ld.CIT(A) without considering these facts concluded that assessee has not furnished Form 10B before the time limit prescribed under the Act. 4.4. ....
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.... should be allowed. 6.1. We have considered the reliance placed by the assessee on the decision of the Co-ordinate Bench in the case of Ramji Mandir Religious and Charitable Trust (supra), which held that procedural requirements like filing Form 10B should not override the substantive claim of exemption, when the assessee has substantially complied with the requirements. The relevant portion of the said decision of the Tribunal is reproduced hereunder: "4.3.4 The question of delayed filing of audit report, after the return of income has been filed, has been scrutinized by various courts of law. It has generally been held that if the assessee submits the audit report before the assessing officer during the assessment proceedings,....
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...., it is necessary that the assessing authority must have this information at the time it completes the assessment. In the absence of any such information, it will not be possible for the assessing authority to give the assessee the benefit of such exclusion and once the assessment is so completed, it would be futile to find fault with the assessing authority for having included such income in the assessable income of the assessee. Therefore, even assuming that there is no valid limitation prescribed under the Act and the Rules, even then it is reasonable to presume that the intimation required under section 11 has to be furnished before the assessing authority completes the concerned assessment because such requirement is mandatory and with....
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.... Thus, the assessing officer is directed to allow the claim of the appellant after due verification as per the IT. Act, 1961. Hence, grounds no. 2 to 4 raised by the appellant are partly allowed." 6.2. It has been held by various Courts that the requirement of filing Form 10/10B is merely directory in nature and failure to furnish Form 10/10B before due-date prescribed u/s 139(1) of the Act cannot be so fatal so as to deny they very claim of exemption u/s. 11(2) of the Act. The following judicial precedents have reiterated the aforesaid principal: I. Association of Indian Panelboard Manufacturer v. Dy. CIT [2023] 157 taxmann.com 550 - TA 655 of 2022 (Guj.); II. Dy. CIT v. Croygas Equipments (P.) Ltd. [IT Appeal No. 415 ....