2025 (6) TMI 40

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....der Section 143(3) of the Income-Tax Act, 1961 (hereinafter referred to as "the Act") pertaining to assessment year 2022-23. 2. Brief facts of case are that appellant/assessee filed income tax return for assessment year 2022-23 declaring total income as nil. The return was processed under Section 143(1) of the Act on 31.03.2023 determining total income at Rs. 70,21,529/- denying exemption under Section 11 of the Act. 3. Against order dated 31.03.2023, appellant/assessee preferred appeal before the Learned Commissioner of Income-Tax (Appeals)/National Faceless Appeal Centre (NFAC), which was dismissed vide order dated 27.03.2024. 4. Being aggrieved, appellant/assessee preferred present appeal. 5. Learned Authorized Representative for the....

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....e audit report in Form 10 was uploaded on Portal on 12.08.2022. Form 10B was filed on 10.05.2022 for financial year ending on 31.03.2022 was mentioned. The assessee filed @ form 10 dated 28.02.2024 correcting assessment year 2022-23. 8. The only reason for denying exemption that assessee has filed audit repot in Form 10B beyond the extended due date. 9. Hon'ble Delhi Bench of the ITAT in ITA No,882/Del/2024 titled as "Earthing Trust Vs. ITO" decided on 10.01.2025 has held as under: "6. We have heard both the parties and perused the material available on record. In the present case, the Assessee filed return of income on 08/10/2022, wherein the Assessee claimed exemption u/s 11 of the Act. Due date for filing the Audit Report in Form No.....

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....he Act, there is no obligation on the part of the assessee to file return accompanied by the audit report, thereby, holding that the same is not mandatory. Therefore, it is clear that before the assessment is completed if such report is filed, no fault could be found against the assessee. That was also the view of the Delhi High Court in the case in COMMISSIONER OF INCOME TAX v. CONTIMETERS ELECTRICALS (P) LTD- (2009) 317 ITR 249(Delhi), wherein the Delhi High Court, by following the judgements of the Madras High Court in COMMISSIONER OF INCOME TAX V. ARUNACHALAM (A.N.)(1994) 208 ITR 481 and in CIT v. JAYANT PATEL (2001) 248 ITR 199 (Mad) held that the filing of audit report along with the return was not mandatory but directory and that if ....