TaxTMI 
TaxTMI 
TaxTMI 
2025 (5) TMI 1876
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....) of the I.T, Act, 1961. 2. The Ld. ADDL/JCIT(A)-1, Hyderabad has also erred in law and on facts and circumstances of the case, by not appreciating that denial of exemption u/s. 11 of the I.T. Act, 1961, rightly and validly claimed u/s. 11 of the I.T. Act, 1961 by the Appellant, is beyond the scope of provisions of section 143(1)(a) of the I.T. Act, 1961. 3. The Ld. ADDL/JCIT(A)-1, Hyderabad has erred in law and on facts of the case by substantially confirming the order by Intimation u/s. 143(1) of the I.T. Act, 1961 passed by the Ld. ADIT, CPC, Bengaluru, merely on the technical ground that the Appellant has not filed Audit Report in Form-10B in time, even though, at the time of passing intimation on 12.03.2020, Audit Report in Form 10B electronically filed on 19.11.2019, was already available on records. 4. The Ld. ADDL/JCIT(A)-1, Hyderabad has also erred in law and on facts of the case by partly allowing the appeal or statistical purpose only and not deciding the appeal on merits even though the Appellant has duly e-filed Audit Report in Form 10B on 19.11.2019. 5. The Ld. ADDL/JCIT(A)-1, Hyderabad has also erred in law and on facts of the case by confirming the disallowa....
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....disallowed the exemption under Section 11 on the ground that Form 10B was not filed within the required timeframe, thereby raising a tax demand of Rs. 32,44,371/-. The assessee's case is that such disallowance was made without issuing any notice to the assessee / appellant. 4. Aggrieved by the said order of the Assessing Officer, the assessee preferred appeal before Ld. CIT(Appeals). 5. In appeal before CIT(Appeals), the assessee submitted that the Assessing Officer, CPC based this adjustment on the proviso to Rule 12(2) of the Income Tax Rules, which mandates e-filing of Form 10B along with the return. The appellant argued that this action ignored CBDT Circular No. 2 of 2020 dated 03.01.2020, which provides for condonation of delay in filing Form 10B for up to 365 days. Since the form was filed within that permissible window, the appellant contended that the exemption under Section 11 should not have been denied. 6. During the course of appellate proceedings, the assessee submitted that assessee trust is eligible to claim deduction u/s 11 of the Act. Further copy of audit report in form 10B which could not be submitted electronically due to inadvertence was also enclosed before....
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....n going through the rival contentions, we observe that both for the earlier as well as subsequent years, the assessee has e-filed Form 10B within the stipulated time frame. Further, for this year as well, we observe that the Form 10B contained a specific UDIN mentioning the date on which the Audit Report was prepared as 03.12.2018 (enclosed at pages 21-23 of Paper-Book submitted before us). Therefore, it is not the case that Auditor's Report in Form 10B had not been prepared by the Auditors but there was a procedural delay in e-filing of the same. 9. In the case of JCIT(OSD) vs. Gujarat Energy Development Agency 154 taxmann.com 348 (Ahmedabad - Tribunal), the Ahmedabad Tribunal held that where assessee is a charitable trust, filed audit report in Form No. 10B during the assessment proceedings, the Assessing Officer could not have denied exemption under Section 11 of the Act on the ground that audit report was not e-filed along with return. 10. Further, in the case of ITO(E) vs. Takshshila Foundation (NGO) 165 taxmann.com 735 (Ahmedabad - Tribunal), the Ahmedabad Tribunal held that requirement of filing Form 10/10B is merely directory in nature and failure to furnish Form 10/10B b....
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....come in time along with audit report under section 12A(1)(B). For relevant assessment year 2016-17, assessee obtained audit report from Chartered Accountant well before time, however, same could not be uploaded along with return of income inadvertently. In absence of any audit report, Central Processing Centre had not granted exemption under section 11 which otherwise was available to it since many years and resultantly demand was raised. The Assessee therefore filed a rectification application under section 154, seeking to place on record audit report to Central Processing Centre but same was rejected on ground that Form No. 10B audit report, was not filed in time. The Assessee filed an application before CBDT to condone delay in filing Form No. 10Baudit report, however same was rejected. The High Court held that since assessee was a public charitable trust for past 30 years and substantially satisfied conditions for availing exemption under section 11 it should not be denied exemption merely on bar of limitation especially when legislature had conferred wide discretionary powers to condone such delay. Accordingly, the Gujarat High Court directed that the order of rectification un....