AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 272
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.... of income on 31.03.2018, which was subsequently revised on 03.04.2018. On the same date, the assessee also filed its audit report in Form No. 10B, declaring a total income of Rs. 5,050 and claiming exemption under Section 11 of the Act. The return of income filed by the assessee was selected for complete scrutiny under CASS. The Ld. AO completed the assessment under Section 143(3) of the Act by disallowing the deduction of Rs. 3,56,00,000/- claimed under Section 11(2) and further made an addition of Rs. 1,97,60,600 under Section 11(3) on the ground that the amount accumulated during AY 2012-13 for utilization within the subsequent five years was not utilized for the purpose for which it was accumulated. Instead, said amount was donated to other trusts, which, according to the Ld. AO, constituted a violation of the provisions of Section 11(3) of the Act. During the course of assessment proceedings, the Ld. AO issued a show cause notice stating that the assessee had claimed deduction of Rs. 3,56,00,000 under Section 11(2) for accumulation of income to be utilized within the next five years. However, Forms No. 10 and 10B were filed on 03.04.2018, i.e., after the due date for filing, ....
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....unt back to the total income. The Ld. AR relied on the findings of the Ld. CIT(A). The relevant paragraph 5.1 of the impugned appellate order is reproduced below: - "5.1. Ground 1 Vide this ground, the Appellant has objected to the disallowance of deduction of Rs. 4,66,74,510/- claimed u/s. 11(2) of the Act on the ground that there has been delay in furnishing Form 10.In this regard, the Appellant has submitted that, although, there has been delay in furnishing Form No.10, the same has been furnished before the AO during assessment proceedings. The Appellant, therefore, submits that it is entitled to claim of deduction u/s 11(2). In support the same, the Appellant has placed reliance on various case laws. 5.1.1. I have considered the submissions made by the Appellant. I have also perused the assessment order. I find that the AO has denied exemption u/s 11(2) on the grounds of non-compliance to the provision u/s 11(2)(c). In this regard, I find that, although, there has been delay in furnishing Form No.10, the same has been furnished before the AO during assessment proceedings. This is an undisputed fact. I find that various courts have held that exemption....
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....ut that the assessee filed the Form No.10 along with the Board Resolution along with the covering letter dated 01.04.2019. However, the mistake done by the assessee was to file hard copies before the Assessing Officer, and not filing the same along with the return of income, which they filed on 02.04.2019. Thus, on the date when the return was taken up for assessment, there was record to show that the assessee had intimated the department about the resolution passed by the Board of the assessee Trust and the statutory Form No.10. Admittedly, the assessment was not completed under Section 143(3) of the Act and therefore, there would have been no error had the assessing officer taken up the copy of the Board Resolution and Form No.10. Thus, on the date when the return was filed, the assessee had separately filed Form No.10 along with the Board Resolution along with a covering letter dated 01.04.2009. Thus, in our considered opinion, when the assessee was entitled to a statutory benefit, it would be incumbent upon the concerned authority to examine the admissibility of the benefit than to foreclose the assessee on technicalities. 9. In "CIT -Vs- Sakal Relief Fund (295 CTR 561....
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....ners to condone the delay in Form 10B for Charitable and Religious Trusts, for years prior to Assessment Year 2018-19. 12. After taking note the facts and circumstances of the case, more particularly when there was no assessment under Section 143(3) of the Act and the fact that the assessee has separately filed Form No.10 along with the Board Resolution, along with the covering letter dated 01.04.2009, it is a fit case where the assessing officer should be directed to take note of Form No.10 accompanied by the Board Resolution and take a decision on merits. As we have taken a decision on the assessee's entitlement to file Form No.10, the substantial questions of law, which have been framed by the assessee are not required to be answered and are left open. 13. For the above reasons, the appeal is allowed and the order passed by the Tribunal as well as the CIT (A) are set aside and the order passed by the Deputy Director of Income Tax (Exemptions)-II dated 28.03.2011 is also set aside. The authority is directed to take note of the Form No.10 and the Board Resolution and take a decision on merits and in accordance with law. No costs. Hon'ble ITAT Chandigarh ....
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....ubmit that the aforesaid contention has already been considered by the Tribunal and the issue has been decided in favour of the assessee in the light of various case laws. We find force in the above contention of the Ld. AR. In view of this, all the issues are covered by the order of the Tribunal in the own case of the assessee for assessment year 2014-15. Respectfully following the said decision and for the sake of consistency, ground Nos. 4 & 5 of the appeal are decided in favour of the assessee, whereas, ground Nos. 1 to 3 are decided in favour of the Revenue. 6. In the result, the appeal of the assessee stands partly allowed. Order pronounced on 24.08.2020. In view of the above discussions and relying on the case laws cited supra, I hold that the Appellant is entitled to claim of exemption u/a 11(2) of the Act. Ground is, thus, allowed." 5. We have carefully considered the rival submissions, the findings of the revenue authorities and the judicial precedents relied upon by both sides. The undisputed fact remains that although Form No. 10 was filed belatedly, it was duly submitted before the completion of the assessment proceedings. Consistent with the ratio....