2024 (9) TMI 142

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....T(A)] arising in the matter of Assessment Order passed u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as "the Act" ) relevant to the Assessment Year (A.Y.) 2021-22. 2. The solitary grievance raised by the assessee is that the Ld. CIT(A) erred in denying exemption u/s 11 of the Act on the reasoning that there was a delay in filing Form 10B i.e. Audit Report. 3. Facts of this case may be summarized as that the assessee / appellant is a charitable society registered under Societies Registration Act, 1860, filed its return of income for the A.Y. 2021- 22 on 23.12.2021 by declaring total income at NIL and the same was processed u/s 143(1) of the Act on 20.09.2022 by determining the total income of Rs. 39,32,700/-. Being ag....

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....Income Tax Act, 1961 stating that the Trust or Institution registered u/s 12A/12AA/12AB has not E-filed the Audit Report in Form 10B one month prior to the due date for furnishing return u/s 139(1). Hence the exemption claimed in Sr. no. 2 [exemption claimed u/s 11(1)(d)) and Sr. no. 4i to 4viii of Part B-TI is not allowable in accordance with the provisions of Section-12A(1)(b) of the Income tax Act. Both these respective notices dated 25.05.2022 and dated 01.07.2022 were send to the e mail ID of the chartered accountant and remained unnoticed and therefore, could not be responded. After receiving the intimation u/s 143(1) of the Act, the matter was taken with the auditors, who conducted the audit of the society who in turn explained that ....

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....lar No. 16/2022 dated 19th July, 2022. The relevant excerpts from Circular No. 16/2022 dated 19th July, 2022 are as follows: "Condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10B for Assessment Year 2018-19 and subsequent years - Reg. In exercise of the powers conferred under section 119(2) of the Income-tax Act, 1961 (hereinafter referred to as 'Act'), the Central Board of Direct Taxes (CBDT) by Circular No.2/2020 (F.No. 197/55/2018-ITA-1] dated 03.01.2020 authorized the Commissioners of Income-tax to admit applications of condonation of delay in filing Form No. 10B for AY 2018- 19 or for any subsequent Assessment Years where there is delay of upto 365 days and decide ....

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....tertain the appellant's condonation application for Form 10B. 7.5 The appellant has the option to approach the jurisdictional Commissioner of Income Tax, Chief Commissioner of Income Tax, or Principal Chief Commissioner of Income Tax for the condonation of the delay in filing Form 10B and to claim the benefits of Sections 11 and 12 of the Act." 8. The impugned order exhibits that the Ld. CIT(A) dismissed the appeal simply due to want of jurisdiction by stating that both he and the Ld. AO not empowered to condone the delay in question. It is established by law that the requirement of filing Audit Report in Form 10B is procedural in nature and therefore exemption claimed by u/s 11 of the Act may be given in certain circumstanc....

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....e appellate remedy. 5.7 The tribunal misdirected 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 108 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 t....