2024 (9) TMI 1835

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....f income claiming exemption under section 11 of the Act amounting to Rs. 2,61,72,520/- which was denied by the CPC while processing the return under section 143(1) of the Act on the ground that the return of income was not accompanied by the audit report in Form 10B as provided under section 12A(1)(b) of the Act. On appeal, the ld. CIT-A confirmed the same. 3. Being aggrieved by the order of ld. CIT-A, the assessee is in appeal before us. 4. The ld. AR before us filed a paper book running from pages 1 to 223 and submitted that the audit was duly conducted as per the provisions prescribed under section 12A(1)(b) of the Act before the due date of filing the return of income. But the same was not uploaded electronically due to omission w....

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....ntitlement of assessee for the benefits of section 11 and 12 b) whether AO can tax the entire receipts in such a situation. In respect of first issue, we find that recently the Ahmadabad Bench of the ITAT in the case of Gagan Deep Charitable Trust in ITA Number 555/Ahd/ 2023 has held that filing of Form 10B report is a mere a procedural lapse. We are conscious that decision of Gagan Deep is rendered by SMC Bench. However the SMC Bench in turn has followed the decisions of Division Benches of the Ahmadabad in the cases of Hari Gyan Parcharak Trust ITA No 252/Ahd/2021 & Shir Visha Oswal Jain Sewa ITA no 59/Ahd/2022. 6. We think it appropriate to quote the observation made by Ahmadabad ITAT in the case of Hari Gyan Pracharak(Supra). ....

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.... even though the same may not have been filed along with the return of income. Filing of audit report is held to be substantive requirement but not the mode and stage of filing, which is procedural. Once the audit report in Form 12B is filed to be available with the Assessing Officer, before assessment proceedings take place, the requirement of law is satisfied. In that view, the Income Tax Tribunal was not justified in dismissing the appeal of the assessee. 6.1 The appellant assessee has to be held to be eligible and entitled to exemptions under Section 11(1) and 11(2) of the Act and the alleged ground of non-filing of audit report along with return of income which was at the best procedural omission, could never to an impediment ....