TaxTMI 
TaxTMI 
TaxTMI 
2024 (9) TMI 1791
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....ion of the Ld. CIT (A) upholding the action of the CPC denying exemption claimed u/s. 11 of the Income Tax Act, 1961 (hereinafter in short "the Act"). 3. The brief facts are that the assessee Charitable Trust was constituted by Trust Deed dated 06.01.1993 and the assessee was granted registration u/s. 12A of the Act by order dated 21.10.1994. The assessee filed its return of income (RoI) on 15.03.2022 for AY 2020-21 declaring total income at Rs.NIL. Later, the return was processed by CPC u/s. 143(1) of the Act and intimation dated 20.09.2022 was passed determining the total income at Rs.1,36,36,658/- [i.e. by denying exemption claimed u/s. 11 of the Act] for the reasons given as under:- In Schedule Part A General -"Details of registratio....
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....lay (less than one month) in filing/uploading the Audit Report in Form 10AB. And interestingly the Ld. CIT(A)/Addl.CIT/JCIT-A, Panchakula has rejected the appeal of the assessee on the plea that he doesn't have the powers to condone the delay in filing of the Audit Report and observed that such a power was vested with the Commissioner to condone up to 365 days; and beyond that period, the power is vested with the Ld. PCCIT/CCIT provided they are satisfies that there was reasonable cause for delay in filing Form 10B within the stipulated time. And according to the First Appellate Authority since he was only an Additional Commissioner, he doesn't have the powers to condone the delay in filing of Form 10B; and therefore, rejected the appeal of....
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....to claim exemption on the strength of the old registration granted on 21.10.1994. However, the Ld.CIT(A)/Addl.JCIT-A, Panchakula, ignored such contention of the assessee (which was the ground on which CPC denied exemption to assessee) but took note that of another issue i.e. Form 10B (Audit Form) was filed belatedly on 15.03.2022 (with a delay of one month) and was of the opinion that he doesn't have the power to condone the delay and also brushed aside the assessee's contention on this issue that filing of Form 10B was directory in nature. The Ld.CIT(A)/Addl.CIT(A) was of the opinion that the same was mandatory and since, he doesn't have power to condone the delay in filing of the Audit Report has dismissed the appeal and advised the asses....
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....s. 11 of the Act]. It is noted that due date for filing such an application was extended from 30.06.2021 time to time by various Circulars of the CBDT and the assessee being an old Trust (enjoying sec. 12A registration from year 1994) ought to have applied for registration u/s. 12A(1)(ac)(i) of the Act and then, in such an event, the assessee would have been automatically granted registration from AY 2021-22 onwards for 'five years'. However, due to bona fide mistake, assessee had inadvertently applied for registration u/s. 12A(1)(ac)(vi) of the Act, [which is meant for new Trust] and in such cases, CPC grants provisional registration for 'three years' and in this case, since assessee has filed for registration on 09.10.2022, CPC granted pr....
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....ct, from year 1994 onwards, after the Parliament passed TOLA 2020 w.e.f. 01.04.2021, had to apply for re-registration under sub-clause (i) of Clause (1) of Sec. 12A of the Act, whereas, it inadvertently applied under sub-clause (vi) of this provision and because of which, it was granted provisional registration u/s. 12AB(1)(c) for three (3) years from AY 2023-24 onwards; and because of this action, the assessee lost its registration u/s. 12AB of the Act for AY 2022-23 and was denied exemption u/s. 11 of the Act, for that year. We find that assessee Trust was legally entitled for registration u/s. 12AB(1)(a) for five (5) years; and because of inadvertent mistake of filling up sub-clause (vi) instead of sub clause (i), the assessee's right fo....
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....ion u/s. 11 of the Act i.e. for the failure on the part of the assessee in not filling up column showing details of application filled for registration u/s. 12AB of the Act at the time of filing of RoI, we find that such an objection need to be overruled in the light of the discussion (supra) and we do so and consequently, the relief flowing from the same has to be granted to the assessee. Therefore, we set aside the impugned order of the Ld.CIT (A) and direct granting exemption claimed by the assessee u/s. 11 of the Act. 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 / uploadin....