2024 (6) TMI 1492

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...., 1961 (the Act) in respect of Assessment Year (AY) 2021-22. 2. The brief facts of the case are that the assessee, a charitable trust registered with Income Tax Department under Section 12AA and also got 80G of the Act. The main object of the assessee is to provide education to aspirants from primary level to secondary level. For the impugned year, assessee has filed its return of income electronically on 07.01.2022, declaring gross total receipt of Rs. 75,68,298/- and Net Income as NIL. The assessee uploaded Form 10B on 07.01.2022. However, could not e-verify it because of some technical glitches at the income tax portal. Therefore, the assessee verified 10B Form on 08.09.2022. The CPC Bangalore (Assessing Officer) (AO) while processing....

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....nt - Appeal Fee (Form 36) Rs. 10,000 8.   Form 36 Appeal before the Hon'ble ITAT, Bangalore 5. A perusal of the above sequence of events would show that the assessee has e-verified Form 10B on 08.09.2022. It is pertinent to note here that the assessee has not filed any application for condonation of delay vis-a-vis filing of Form 10B before the CIT in term of CBDT circular no 19/2021 dated 03.11.2020. The main contention of the assessee is that filing of audit report by way of Form 10B is a procedural requirement and hence delay in filing the same would not prejudice the assessee. Assessee has also cited various judgments on this aspect. Second contention of the assessee is the AO has erred in taxing the entire re....

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....by Ahmadabad ITAT in the case of Hari Gyan(Supra).  "7. We have carefully considered the order passed by the authorities below and the judgment passed by the Hon'ble Jurisdictional High Court in case of Association of Indian Panelboard Manufacturer (supra) on the issue involved. While passing order in favour of the assessee, the Hon'ble Jurisdictional High Court has been pleased to observe as follows: "5.6 The tribunal further committed an error in appreciating the import of Section 119 2(b) of the Act inasmuch as the application contemplated thereunder is only additional remedy for the assessee which could not be said to be compulsorily resorted to by the assessee. The circular No.7/18 dated 20.12.2018 issued under S....

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.... omission, could never to an impediment in law in claiming the exemption. 6.2 Accordingly the substantial questions of law have to be decided in favor of the appellant. 7. They are accordingly decided. The appeal is allowed." 8. In view of the ratio laid down by the Hon'ble Jurisdictional High Court holding that non filing of Audit Report along with return of income is a procedural omission and cannot be an impediment in law in claiming the exemption, we allow this appeal condoning the delay in filing the Audit Report in Form No. 10B. However, we also upon condoning the delay, restore the matter to the file of the Ld. CIT(A) to pass order in regard to the exemption claimed by the assessee strictly in accordance wi....