2025 (1) TMI 1596

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....gram. 2.0 The only issue seminal to the controversy is as to whether furnishing of Form-10B is mandatory for claim of deduction u/s 11 to the assessee. The assessee is contesting denial of deduction u/s 11 to it by the Revenue on the premise of non-submission of Form-10B. The Ld. Counsel for the assessee representing the assessee trust informed that the assessee had filed his return of income using ITR 7 on 08.10.2016. It was submitted that the audit report was done on 01.09.2016. Admittedly Form-10B could not be filed, though the same was filed later before the appellate authority. 3.0 We have heard the rival submissions in the light of material available on records. The Ld. DR placed reliance upon the order of the lower authorities. It....

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.... tribunal in the case of Kakkum Karangal ITA No. 1166/Chny/2024 the following was held:- "....10. For completeness, we make it clear that the Ld.CIT (A) erred in rejecting the appeal preferred by the assessee on a ground which was not raised/flagged by the CPC i.e. delay of less than one month in filing / uploading of Audit Report. In this context, it is noted that such an issue is no longer res integra i.e. filing of Form 10AB (Audit Report) would be directory in nature and as such if the assessee files the Audit Report before completion of assessment, then, the same should be considered by the Income Tax Authorities for processing of the assessment/appellate order (refer the Hon'ble Gujarat High Court decision in the case of Indian....

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.... to be that of correctness of learned lower authorities' action in disallowing the assessee section 11 exemption claim on the ground that it had belatedly filed its form 10B audit report dated 22.09.2022 than the due date of filing return u/s 139(1) of the Act. The Revenue's case is that this tax audit report compliance is a mandatory provision for an assessee who claims section 11 exemption. 4. We note in this factual backdrop that the instant issue is no more resintegra in light of ACIT v. Xavier Kelvani Mandal Pvt. Ltd. (Gujarat), wherein their lordships have already settled the same at rest in assessee's favour and against the department that such a compliance could be even made in first appellate proceedings before the CIT(A)/NFAC. ....