TaxTMI 
TaxTMI 
2025 (7) TMI 891
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....vide letter dated 23.08.2024 which are as under:- "1. The Ld. CIT(A) NFAC has erred on facts and law in dismissing the appeal of the assessee, vide order u/s 250 of the act Dt. 02.08.2023 for Ay 2018-19, filed against order u/s 154 of the Act Dt. 24.07.2020, passed by CPC, in which, the request was made by the assessee to rectify the mistake of denying the exemption u/s 11 of the Act and assessing the income at Rs. 5,73,37,740/-, as against nil income declared in the return of income, has been rejected. 2. That the Ld. CIT(A) NFAC has erred in denying the request of the assessee in the appeal filed against order u/s 154 of the Act Dt. 24.07.2020 to allow the exemption u/s 11 of the Act on account of non-filing of Form-10B ....
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....ook three days' time to reach its destination since, Ist of October was Sunday and 2nd of October 2023 was holiday, the appeal was accordingly, delivered to the office of ITAT on 04.10.2023 and, thus, it was prayed for condonation of delay. The CIT (DR) did not object to such condonation. After going through the application and affidavit, we condone the delay. 4. The facts as emerging out from the order of Ld. CIT(A) are that the assessee is a registered society u/s 12AA of the Income Tax Act 1961 vide order, dated 25.03.2015 of the CIT (Exemption). The facts, in brief, are that the assessee had filed the return of income on 30.09.2018 i.e. within time after claiming exemption u/s 11 of the Act. While processing the return, it was discov....
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....the scrutiny assessment have taken place and the exemption u/s 11 have been granted on the basis of return filed by the assessee and during the year under consideration, it was only on account of the inadvertent mistake on the part of the counsel of the assessee that the said audit report could not be filed in time. On the other hand, the assessee was under a bonafide belief that the said auditor would have filed the Form No.10 B from his e-filing portal to meet the necessary requirement. It was also stated that there were certain technical glitches as well on the web site of the department and that also caused delay and, thus, the withdrawal of exemption and taxing of gross receipts was not in order. 8. The Ld. Counsel in this context r....
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....it was again laid down, the following judgment of Gujarat Oil and Allied Welfare Trust Vs ITO (Exm) as 'cited supra' that furnishing of audit report is procedural in nature and, as such, it was argued that no doubt have been raised about the aims and objects of the Trust, so, the said exemption needs to be allowed. It was further pointed out that the CIT(A), while deciding the appeal has relied upon the Circular No. 7/2018, dated 20.12.2018 at page 10 of his order, which related to Form No. 10 and Form No. 9A and, in the present case, it is a the case of delay in filing the audit report on Form No.10B and thus, it was argued that wrong conclusion has been drawn by the CIT(A). 10. The CIT (DR) relied upon the order of CIT(A) and stated th....
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....enied the same merely on the bar of limitation especially when the legislature has conferred wide discretionary powers to condone such delay on the authorities concerned. 32. We may also refer to the decision of this Court in CIT v. Gujarat Oil and Allied Industries Ltd. [1993] 201 ITR 325 (Guj.), wherein it is held that the provision regarding furnishing of audit report with the return has to be treated as a procedural proviso. 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 the same before the completion of the assessment. This Court took the view that the benefit of exemption should not be denied mere....