2025 (6) TMI 1487

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....3. 2. The Assessee has taken the following grounds of appeal:- "1. Whether, on facts and in circumstances of the case and in law, Ld. CIT(A) erred in not allowing exemption of Rs. 2,34,78,541/- u/s. 11 of the act? 2. Whether, on facts and in circumstances of the case and in law, Ld. CIT(A) has erred in confirming adjustment of Rs. 2,34,78,541/- u/s. 143(1) of the act? Further, appellant craves leave to add, amend, alter or withdraw all or any ground of appeal." 3. The brief facts of the case are that the assessee/applicant trust filed return of income on 14.10.2022. Thereafter, notice under Section 143(1)(a) dated 14.02.2023 was issued by CPC, wherein certain adjustments were proposed. The assessee/applicant trust could not file res....

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.... e-filed Audit Report in Form 10B much prior to intimation order passed under Section 143(1) of the Act. The Counsel for the assessee relied on various judicial precedents which have held that delay in filing of Form 10B is only a procedural error and such delay cannot be the basis of denial of grant of exemption under Section 11 of the Act. 7. In response, Ld. D.R. placed reliance on the observations made by Ld. CIT(A), in his order. 8. Ld. D.R. submitted that the assessee had got multiple opportunities to present it's case on merits. But despite this the assessee failed to avail these opportunities and he neither filed any response to notice issued under Section 143(1) of the Act and even did not file any response/submissions before Ld.....

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....n 154 be quashed. 11. In the case of JCIT vs. Gujarat Energy Development Agency154 taxmann.com 348 (Ahmedabad-Trib.), the ITAT held that where assessee, a charitable trust, filed audit report in Form No. 10B during assessment proceedings, Assessing Officer could not have denied exemption under Section 11 on ground that audit report was not e-filed along with return. 12. In the case of Sarvodaya Charitable Trust vs. ITO 125 taxmann.com 75 (Gujarat), the High Court held that where assessee, a public charitable trust registered under Section 12A, had substantially satisfied condition for availing benefit of exemption as a trust, it could not be denied exemption merely on bar of limitation in furnishing audit report in Form No. 10B. 13. In t....

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....e, the matter is hereby set-aside to the file of Ld. CIT(A), for necessary verification and if it is found that the assessee had filed Form 10B before issuance of notice under Section 143(1) of the Act, then appropriate relief may be granted to the assessee. 16. In the result, Ground No. 1 of the assessee's appeal is allowed for statistical purposes. 17. The second ground/issue which was raised by the assessee was that on verifying the Income Tax Return, the assessee came to know that while filing return of income there was an inadvertent error on part of the tax consultant who had mistakenly entered the details in Form 10AC issued for registration under Section 80G of the Act, instead of filing details in form pertaining to registration ....