TaxTMI 
TaxTMI 
2025 (6) TMI 403
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.... section 11 of the Income Tax Act by the CPC merely due to delay in filing of Form 10B is bad in law. 2. That pursuant to the Faceless Appeal Scheme, the ld. Add.CIT/JCIT had no jurisdiction to pass the order under section 250 of the Act and, therefore, the impugned order, being without jurisdiction, is bad in law. 3. That the addition of Rs. 26,35,000/- to the total income of the appellant trust and consequent tax demand created at Rs. 7,40,310/- is arbitrary and unjust. 4. That the appellant denies its liability to pay interest amount ting to Rs. 1,06,921/-." 2. At the time of hearing, ld. AR of the assessee submitted that the assessee is an AOP (Trust) duly registered under section 12A of the Income Tax Act,....
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....ssessee seeking its lawfully entitled exemption and the assessee filed the same Form 10B before the appellate authority as well and the same is a matter of record. Furthermore, he submitted that it is not the case of the Revenue that the Form 10B was filed after the filing of return. In fact, the said Form was filed way before filing the return albeit with a delay of one day and that too solely because of the technical slags that frequently occur on the last dates of furnishing such particulars. In this regard, he relied on the following decision of ITAT wherein it was consistently held that conditions of filing Form 10B for availing benefit under section 11 are directory in nature and not mandatory, and that a mere delay in filing cannot b....
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....on of total income in respect of newly established 100% Export Oriented Undertakings under Section 10B of the Act. Section 10B(8) of the Act requires the assessee to file an undertaking before the due date of furnishing of return of income under sub-section (1) of Section 139 of the Act before the Assessing Officer in writing that the provision of Section 10B of the Act may not be made applicable to him, otherwise the provision of this Section shall not apply to him for any of the relevant assessment year. ..... 7. Reference to the aforesaid decision has no connection whatsoever remotely to the facts of the present case and therefore, in the facts of the present case, the Tribunal has rightly followed the decision of this ....
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....ble Supreme Court in Wipro Limited was based on such strict interpretation of section 10B. In the present case, the assessee has to file the audit report in Form 10B before the due date as per Rule 12A(1)(b) of the Rules. I observed that the above conditions of filing the Form 10B was relaxed by the CBDT in the earlier assessment years, therefore, it clearly shows that it is only directory in nature and not mandatory, since, it is in compliance with Rules framed for availing the benefit under the provisions of Section 11 and it is held that to be directory in nature. I find support from the decision of Hon'ble Madras High Court in the case of Shri Chandraprabhuji Maharaj Jain Juna Mandir Trust (supra), wherein it is held as under: ....
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....ssee on technicalities." 5. Further, I observed that Hon'ble Gujarat High Court in the case of CIT vs. Xavier Kelavani Mandal (P) Ltd. 221 taxman 43 (Guj-HC) held as under: "4. The question whether it is permissible to the assessee to produce the audit report at the appellate stage, has already been answered by this court in CIT v. Gujarat Oil & Allied Industries Ltd. [1993] 201 ITR 325 (Guj.), wherein it is held that the provision regarding furnishing of audit report along with the return has to be treated as a procedural provision, 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 before completion o....