AI Drafter 
TaxTMI 
TaxTMI 
2025 (2) TMI 541
X X X X Extracts X X X X
X X X X Extracts X X X X
.... facts in confirming the addition of Rs. 23,97,758/- made by the learned AO to the taxable income of the appellant, instead of declared income of Rs. 1,13,780/-. 2. Appellant trust contends that Form 10B has been filed and as such all the compliances were ensured by the appellant trust and therefore eligible for exemption u/s 11 of the ITA, 1961. 3. Appellant trust contends that non filing / delay in filing Form No. 10B is merely a technical default and is curable as held by Kokan Kala Shikshan Vikas Sanstha V. DCIT, CPC (ITA No. 645/PUN/2022) and various High Courts. 4. The learned AO computed appellant's income of Rs. 25,11,539/- without granting deduction for genuine and bonafide expenses incurred for the o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Rs. 25,11,539/- and expenditure incurred during the year are Rs. 20,21,027/-. However, the CPC while processing the return on 11.05.2020 denied the benefit of exemption u/s 11 of the Act on account of non-filing of audit report in Form 10B and treated the gross receipts of Rs. 25,11,539/- as income. Before me, the assessee through its grounds and paper book has made two fold contentions. Firstly, even though audit report was filing belatedly, UDIN Number was generated on 24.09.2019 itself but due to some technical glitches audit report could not upload at that point of time. It was also stated that when the matter was pending before Ld. CIT(A), audit report was uploaded and Ld. CIT(A) ought to have taken cognizance of the same and allowed t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ind that there are plethora of decisions favouring the assessee on this issue. I however like to reproduce the findings of this Tribunal in the case of Kokan Kala Shikshan Vikaas Sanstha Vs. DCIT, CPC, Bengaluru vide ITA No.645/PUN/2021 dated 30.12.2022 where dealing with the same issue stands held as under :- "2. Concisely stated facts borne out of the case records are; 2.1 The appellant assessee is a Trust engaged in charitable activities in the field of education, cultural, social, medical relief and woman empowerment etc., and registered u/s 12AA of the Act, had for assessment year 2018-19 [for short "AY"] filed its return of income [for short "ITR"] u/s 139(4D) on 13/07/2018 declaring total income at Rs. 3,30,680/- af....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in-spite having co-terminus power with that of Ld. AO, has rejected to entertain the claim of exemption, which caused injustice to the appellant. Per contra the Ld. DR supported the order passed by both the tax authorities below [for short "TAB"] and contended that when the assessee failed to file Form 10B along with return of income, the assessee is not eligible for exemption u/s 11 of the Act as per the amendment in Finance Act, 2015 w.e.f. 01/04/2016. 4. We have heard the rival contentions of both the parties; and subject to the provisions of rule 18 of "ITAT Rules", perused the material placed on record, case laws relied upon by the appellant as well the respondent and duly considered the facts of the case in the light of settl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....unintentional and beyond the control of the appellant is sufficient to form a reasonable cause for non-compliance and since the procedural compliance has been duly made good by fling the audit report on record, we see no reason to deny the exemption in the present facts and circumstance, ergo we set-aside the order of both the tax authorities below and direct the Ld. AO to grant the claim of exemption in the evince of Form No 10B." 7. On going through above findings of this Tribunal (supra), I find that the same is squarely applicable to the case of the assessee. Respectfully following the same, I hold that since the assessee has furnished income tax return in time and subsequently the audit report in Form 10B was filed, the UDIN Number ....