TaxTMI 
TaxTMI 
2025 (12) TMI 408
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....extended time limit under Section 139(1) of the Act. 1.2. The learned CIT(Appeals) and the learned Assessing Officer failed to appreciate that the time limit prescribed for filing the Audit Report is only declaratory and not mandatory. The lower authorities failed to appreciate that delay in filing the Audit Report is only a procedural lapse and the same cannot be fatal leading to denial of exemption/benefits under Section 11 of the Act particularly when the said Audit Report was available on record when the Return of Income was processed under Section 143(1) of the Act. 1.3. The learned CIT (Appeals) failed to appreciate the explanations/submissions furnished by the Appellant and the legal position emerging from the decisions of various High Courts/Income-tax Appellate Tribunals dealing with amended provisions of Section 12A(b) of the Act. In view of the above, the Appellant prays that the learned Assessing Officer may kindly be directed to grant the exemption under Section 11 of the Act to the Appellant and reduce the Total Income to Rs. 1,23,686/- as declared in the Return of Income filed. 2.1. Without prejudice to the above, it is submitted t....
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.... the need arises at the time of hearing." 2. None appeared on behalf of the assessee nor was any adjournment application filed. Considering the matter involved under consideration, it was decided to proceed and decide the matter basis the material available on record. 3. Briefly the facts of the case are that the assessee is a Public Trust registered under the Maharashtra Public Trust Act, 1950 and also u/s. 12AB of the Income Tax Act, 1961 ("the Act"). It filed its return of income declaring total income of Rs. 1,23,686/-, after claiming exemption u/s. 11 and 12 of the Act. The Central Processing Centre, Bengaluru ("CPC" Bengaluru) processed the return of income and in terms of intimation issued u/s. 143(1) of the Act, made certain adjustments, disallowing Rs. 6,73,510/- u/s. 11(1)(a) of the Act Rs. 9,00,000/- u/s. 11(2) of the Act and Rs. 22,688/- being capital expenditure claimed u/s. 11 of the Act, thereby determining the assessed income at Rs. 17,19,884/- and consequent tax liability of Rs. 3,45,310/- for the reason that the auditor report in Form-10BB was not furnished within the prescribed due date as so specified. 4. The assessee thereafter carried the matter in ap....
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....the record that given the extended due date for e-filing of return of income u/s 139(1) of 15-11-2024, the extended due date for filing the audit report in Form-10BB was 15-10-2024 and given that the assessee has filed the audit report on 04-11-2024, there is slight delay by 19 days in filing such audit report. 9. We find that though time lines have been specified for furnishing such audit reports, at the same time, as can be seen in the instant case, the time lines have been extended by the CBDT given the circumstances prevailing at the relevant point in time. Further, the matter relating to condonation of delay in filing such audit reports has been dealt by the CBDT from time to time and necessary instructions have been issued to the competent authority for condoning such delay. In this regard, reference can be drawn to the CBDT Circular No. 16/2024, dt. 18-11-2024, wherein it has been provided that the CBDT in exercise of its powers conferred u/s. 119(2)(b) of the Act authorizes, the Pr. Commissioners of Income Tax (Pr. CsIT)/Commissioners of Income Tax (CsIT) to admit and deal with applications for condonation of delay in filing Form No. 9A/10/10B/10BB for AY. 2018-19 and su....
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....ion and the delay has been condoned. In this regard, we refer to the decision of the Co-ordinate Ahmedabad Bench in the case of Health Foundation and Research Centre vs. ACIT [2025] 175 taxmann.com 447 (Ahmedabad - Trib.), wherein it was held as under: "13. On the substantive issue of belated filing of Form No. 10B, we note that the Hon'ble Gujarat High Court in Association of Indian Panelboard Manufacturers (supra) has categorically held that where Form 10B was belatedly filed but audit was completed in time, the denial of exemption solely on that ground is not justified. The Hon'ble Court emphasized that the requirement of filing the audit report along with return is directory and not mandatory, and that the claim of exemption under section 11 should not be denied when there is substantial compliance with the law. Similarly, in Anjana Foundation case (supra) the Hon'ble Court reiterated that the purpose of requiring Form 10B is to ensure that the conditions of sections 11 and 12 are fulfilled, and if the audit is completed in time, mere technical delay in uploading the form should not defeat the substantive right of the assessee to exemption. The CBDT Circula....