2025 (9) TMI 653

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....ctification passed u/s 154 of the Act by Centralized Processing Center, Bangaluru ['Ld. CPC'] anent to assessment year 2018-19['AY']. 2. The only issue in this appeal revolves around denial of exemption u/s 11 & 12 of the Act for filing of audit report after filing return of income but within the prescribed/extended due date. 3. Briefly stated the facts of the case are that; 3.1 The assessee is a charitable institution registered u/s 12A of the Act which filed its return of Income on 27/10/2018. The Audit Report in prescribed Form No. 10B r.w.r. 17B of the Income Tax Rules, 1962['IT-Rules'] however was filed on 28/10/2018. The return of Income filed by the assessee was processed u/s 143(1) of the Act summarily on 17/10/2019 whereby the e....

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....reason behind denial of exemption by the Revenue is attributed towards filing of audit report after filing of return. As return as well as audit report were filed within the extended due date, therefore there was no default on the part of the assessee in complying with the provisions of section 12A r.w.r. 17B (supra). For the purpose of giving effect to section 11 and 12 of the Act, at the time of processing of ITR the audit report was already on record before Ld. CPC, therefore there was no logic in denying the exemption merely the audit report was filed after filing of return. To cut the denial to corner, the Ld. Sethia averred that, since the filing of audit report was obtained and filed within the extended due date therefore there was n....

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....rix in clear terms; for the assessment year under consideration, originally the due date for filing return of income and audit report for the year under consideration respectively were 30/09/2018 which the Ld. CBDT vide dt 24/09/2018 extended it to 15/10/2018 in first instance. On the representation of various stakeholders, the Ld. CBDT vide order u/s 119 of the Act dt. 08/10/2018 extended the said due date for filing of return of income and reports of audit further to 31/10/2018. It is an admitted fact that, in view of the aforestated extension return of income filed by the appellant, was well within the provisions of section r.w.s. 139(4A) of the Act. There is also much dispute that audit report in prescribed Form No 10B r.w.s. rule 17B o....

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....re-conditions which are laid in section 12A of the Act. The lone condition relevant to present case in hand is worthy to note here; (a) . . . (b) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of sections 11 and 12 exceeds the maximum amount which is not chargeable to income-tax in any previous year, the accounts of the trust or institution for that year have been audited by an accountant defined in the Explanation below sub-section (2) of section 288 before the specified date referred to in section 44AB and the person in receipt of the income furnishes by that date the report of such audit in the prescribed form duly signed and verified by such accountant and settin....