TaxTMI 
TaxTMI 
2024 (11) TMI 382
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....s raised four grounds but the sole grievance is against the order of learned CIT (A) confirming the action of CPC Bangalore, denying the claim of exemption under Section 11 of the of the Act, solely on account of delay in filing of audit report in form 10B. 02. At the outset, the learned counsel for the assessee submitted that the return of income has been filed within the prescribed time limit under Section 39(1) of the Act. Though, the audit was duly carried out by the auditors before filing of return of income, but due to technical glitches, the audit report on form 10B could not be uploaded on the e-portal within the prescribed time limit. Reliance placed on the decision of this Tribunal in case of Bangarh Educational Welfare Trust V....
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....of the Act was denied for delay in filing form 10B. This Tribunal held in favour of the assessee holding that filing of form 10B is merely a procedural requirement and the defect is curable. The relevant finding of this Tribunal in case of Manav Seva Trust (supra) reads as under: - "3. We have considered the submissions by both the ld. A/R and ld. D/R and also perused the orders of ld. AO and the ld. CIT(A). Ld. A/R has relied on the case of Hari Gyan Pracharak Trust vs. DCIT in ITA No. 245/AHD/2021, order dated 16.06.2023. In this case, the Coordinate Bench has held that since filing of Form-10B is merely a procedural requirement, any defect in that is curable. It is seen that the Hon'ble Orissa High Court in the case of Onene....
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....tion of mala fide. As held by the Gujarat High Court in Sarvodaya Charitable Trust v. ITO (Exemption) [2021] 125 taxmann.com 75/278 Taxman 148, the approach in the cases of the present type should be equitious, balancing and judicious. Technically, strictly and liberally speaking, Respondent No.1 might be justified in denying the exemption by rejecting such condonation application, but an assessee, a public charitable trust with almost over thirty years, which otherwise satisfies the condition 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 on the authorities concerned. [Para 6] ■ Moreover, ....
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.... Writ Petition has to be allowed and is hereby allowed in terms of prayer clause. ■ Since the delay has been condoned, Respondent shall process Petitioner's returns in accordance with law by giving effect to this order on the basis that Form No.10B has been filed within time. [Para 11]" 4. Considering the discussions made above, the delay in filing of Form10B is hereby condoned and it is directed that the appellant be allowed exemption as would be due to him as per law. The ld. AO is directed accordingly." 05. Similar issue was also deal with by this Tribunal in Bangarh Educational Welfare Trust (supra), where also the facts are almost identical and the assessee was given relief by this Tribunal observing as under....
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....rt in the case of Sarvodaya Charitable Trust vs. ITO(Exemption) (supra) wherein Para 32 of the said judgment reads as follows: "32. We may also refer to the decision of this Court in CIT v. Gujarat Oil and Allied Industries Ltd. [1993] 201 ITR 325 (Guj), wherein it is held that the provision regarding furnishing of audit report with the return has to be treated as a procedural proviso. It is directory in nature and its substantial compliance would suffice. In that case, the assessee had not produced the audit report along with the return of income but produced the same before the completion of the assessment. This Court took the view that the benefit of exemption should not be denied merely on account of delay in furnishing the sam....
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.... by the computer with the set program. Had it been the case of scrutiny proceeding u/s 143(3) of the Act, the case could have been different. The ld. A.O may had an opportunity to go through the audit report. But still when the issue came before ld. CIT(A) who also possesses co-terminus power with that of A.O and as per section 251(1)(a) of the Act, the ld. CIT(A) in disposing the appeal against order of assessment has the power to confirm, reduce, enhance or annul the assessment, therefore, though, it was not possible to entertain the audit report while processing the return u/s 143(1)(a) of the Act, but the ld. CIT(A) was well within its power to have entertained the said report and examined the same as could have been done by the A.O. ....