TaxTMI 
TaxTMI 
2025 (5) TMI 1954
X X X X Extracts X X X X
X X X X Extracts X X X X
....s; therefore, these were heard together and are being disposed off by this common order. 3. Similar grounds have been raised in both AYs as under: - "1. The Ld. CIT(A) has grossly erred on facts and in law in sustaining the addition made by the Ld. ITO (Exemption) on the ground that the appellant has not filed its audit report in form 10-B within the due date as per section 139(1) of the Income Tax Act. 2. The appellant prays for leave to add, modify and amend any of the grounds of appeal and to take any sub grounds of appeal within the aforesaid grounds of appeal." 3. The relevant facts giving rise to these appeals are that the assessee, a registered under section 12A of the Income Tax Act, 1961 (Act) vide order dated 03.03.1994. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
....: - "there is no clarity as to whether the said return of income is to be filed within the time allowed u/s 139 of the Act or otherwise. Hence, the amendment brings the clarity that the return is to be filed within the time allowed u/s 139 w.e.f. 01.04.2018." 4.1 Further, Ld. AR drew our attention to Circular No. 2/2018 dated 15.02.2018, to submit that this Circular prescribes that the assessee registered under section 12AA of the Act has to file the ITR under section 139(4A) of the Act if total income without giving effect to the provisions of section 11 and 12 of the Act exceeds the maximum amount which is not chargeable to tax. However, there is no clarity as to whether the said ITR has to be filed within the time allowed under sectio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....9) of the Act. Since the AO-CPC did not provide any opportunity to cure the defect; therefore, the Ld. AR prayed to hold the processing of defective ITRs under section 143(1) of the Act as void ab-initio. 5. On the other hand, the Ld. Sr. DR, placing reliance on various paras of orders of the lower authorities, prayed for dismissal of the appeal. 6. We have heard both the parties at length and have perused the material available on record. Online filing of the Audit Report in Form 10B has become mandatory along with ITR from AY 2013-14 onwards. The ITR without Form 10B have been processed without giving benefit of section 11 and 12 of the Act. In other words, the total income declared in both ITRs was subjected to tax without providing an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....milar circular clarifying the above issue; i.e. the provisions related with the requirement of submission of the audit report are directory and not mandatory, has also been issued by the CBDT vide F. No. 1/1148-CBDT F. No. 267/482/77-IT (Part) dated 09.02.1978. In view of the above, we are of the considered opinion that the auditor's report in Form 10B along with the ITR is also procedural and not directory in nature and by showing sufficient cause, the auditor's report can be produced at any later stage either before the AO or the appellate authority. 10. We also find merit in the argument of the Ld. AR that when the Audit Report in Form 10B was not submitted along with the ITRs, then such ITRs should had been treated as defective....