TaxTMI 
TaxTMI 
2025 (6) TMI 819
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..... 2. Ld. Commissioner of Income Tax (Appeals), Income Tax Department was not justified in deciding that there was no mistake in processing of the return of income despite of fact that the return of income was processed without granting exemption available under section 11 of the Act. 3. Ld. Commissioner of Income Tax (Appeals), Income Tax Department committed serious error of law inasmuch he failed to appreciate that condonation of delay in filing of Form 10B subsequently by the competent authority shall have retroactive effect as if the Form 10B was filed as on the date of filing of return and therefore the reason for denial of exemption becomes non est. 4. Ld. Commissioner of Income Tax (Appeals), Income Tax Department ought to have decided that the expenses of Rs. 6,03,14,738 which were incurred for the receipt of Rs. 5,31,40,660 were required to be allowed and adjusted before determination of total income irrespective of and regardless of the availability of exemption under the Act. 5. The Appellant prays to add, alter or delete any of the grounds at the time of hearing." ITA No. 1831/Ahd/2024 (A.Y. 2014-15) "1. Ld. Commissioner of Income Tax (Appeals), Income Tax D....
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.... Ld. CIT(A) dismissed the appeal of the assessee by observing that though the assessee had approached the jurisdictional CIT(E) for condonation of delay in filing Form 10B which has been accepted vide order dated 27.06.2022. However, so far as appeal against the rectification order passed under Section 154 of the Act was concerned, since at the relevant time of passing of the rectification order under Section 154 of the Act, the delay in filing Form 10B had not been condoned by Ld. CIT(Exemptions), there was no mistake apparent in the order passed by the Assessing Officer or CPC. While passing the order, Ld. CIT(A) made the following observations: "6. On perusal of the facts and grounds of the case, order passed u/s 154 of the Act and the evidences placed on record, it is evident that the appellant trust filed its return of income for the year under consideration on 25/03/2015 declaring total income of Rs. (-)71,74,077/- and the CPC processed the return u/s 143(1) of the Act on 16/03/2016 by making adjustment, wherein, disallowance of exemptions claimed of Rs. 6,03,14,738/- u/s 11 of the Act was made. A rectification application in this regard was filed before the AO. However, on....
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....iance on the observation made by Ld. CIT(A) in the appellate order. 7. We have heard the rival contentions and perused the material on record. 8. In the instant case, we observe that admittedly there was a delay of four years in filing of Form 10B by the assessee trust. It was on this basis that the CPC as well as the Assessing Officer had upheld the denial of exemption under Section 11 of the Act. However, we also observe that Ld. CIT(E), Ahmedabad vide letter dated 27.06.2022 passed an order under Section 119(2)(b) of the Act, condoning the delay in filing of Form 10B. Such grant of approval condoning the delay in filing Form 10B was also submitted by the assessee trust before Ld. CIT(A) during the course of hearing before him. However, Ld. CIT(A) upheld the denial of exemption under Section 11 of the Act on the ground that at the time of processing of return of income under Section143(1) of the Act as well as at the time of passing of rectification order under Section 154 of the Act, since the approval for condonation of delay had not been granted by the Ld. CIT(A), apparently there was no mistake in the order passed by Assessing Officer under Section 143(1) of the Act / 154 o....
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....thority by assigning sufficient cause. 33. In view of the above, this writ-application succeeds and is hereby allowed. The impugned order passed by the respondent no. 2 dated 19th August 2019 (Annexure-A to this writ-application) is hereby quashed and set aside. The impugned rectification order at page-13 of the paper-book dated 12th February 2020 is also hereby quashed and set aside. The delay condonation application filed by the writ-applicant before the respondent no. 2 is hereby allowed." 8.2. In the case of Association of Indian Panelboard Manufacturing vs. DCIT in R/Tax Appeal No. 655 of 2022 vide order dated 21.03.2023 the Gujarat High Court held that once the audit report in Form 12B is found to be available with the Assessing Officer before conclusion of assessment proceedings, the requirement of law is satisfied. While passing the order the Hon'ble Gujarat High Court made the following observations: "5.7 The tribunal misdirected itself in yet another way when it observed that The Finance Act, 2015 with effect from 1.4.2016, that is from assessment year 2016-17 changed the legal position. There is no such change which could be said to have altered the legal position. ....