TaxTMI 
TaxTMI 
2025 (7) TMI 514
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....i vide order dated 28.03.2025 passed for A.Y. 2021-22. 2. The Assessee has taken the following grounds of appeal:- "1. Under the facts and circumstances of the case Ld. CIT Appeal has erred in confirming the adjustments 143(1)(A) and or disallowance of the expenses and not granting exemptions legally available to charitable trust. 2. Ld. CIT Appeal also erred in not considering ITAT Ahmedabad bench order submitted with appeal. Being the case of Shri Mahudi Madhupuri Jain NSM Bhojanshalal & Prashafi Bhavan V. CPC, Bangalore Present Jurisdiction - ITO Ward-2, Exemption, Ahmedabad ITA No. 184/Ahd/2024 (Ahd-Trib.) reported in 2024 ITL 2053 order dated 04-06-2024. 3. Appellant reserves its right to add or vary the g....
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....earing, none appeared on behalf of the assessee to present it's case on merits. Accordingly, Ld. CIT(A) dismissed the appeal of the assessee with the following observations: "The facts and circumstances of the case, the observations of the AO and material available on record on the above matter have been considered. A perusal of the appellate proceedings shows that appellant have not made any submissions to prove that the conclusion reached by the AO was untrue. Further, the fact remained that the appellant failed to furnish any document/evidence in support of the various grounds of appeal raised; and that therefore, the explanation submitted by the assessee in support of the grounds of appeal remained unsubstantiated. It remained ....
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....s liable to be dismissed. As a result, the appeal stands Dismissed." 6. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(A) upholding the disallowance made by CPC, Bengaluru. Before us, the Counsel for the assessee admitted that there was a delay in filing of Form 10B on account of mistake of the consultant of the assessee trust. However, the Counsel for the assessee submitted that at the time when the Assessing Officer processed the return of income under Section 143(1) of the Act denying claim of exemption under Section 11 of the Act on the ground that Audit Report in Form 10B has not filed alongwith return of income, since such Audit Report in Form 10B (though filed belatedly) was available wi....
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....rm 10B is a procedural default and if other conditions have been met, then mere delay in filing of Form 10B should not disentitle the assessee from claiming exemption under Section 11 of the Act. In the case of Sarvodaya Charitable Trust v. ITO(E) [2021] 125 taxmann.com 75/278 Taxman 148 (Gujarat), the Hon'ble Gujarat High Court held that where assessee, a public charitable trust registered under Section 12A of the Act 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. While passing the order the Hon'ble Gujarat High Court made the following observations: "31. Having given our due considerati....
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....ve, 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." 10. In the case of Association of Association of Indian Panelboard Manufacturer v. Dy. CIT [2023] 157 taxmann.com 550/482 ITR 54 (Gujarat)/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 Off....