TaxTMI 
TaxTMI 
2026 (1) TMI 449
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....ial of exemption under section 10(23C)(via) of the Income Tax Act, 1961 ('Act') and chargeability of entire gross receipts as income instead of taxing the surplus as per Income & Expenditure Account. 3. The relevant facts giving rise to this appeal are that the assessee filed its Income Tax Return ('ITR') on 19.09.2015 declaring NIL income after claiming exemption under section 10(23C)(via) of the Act. The audit report uploaded on the Income Tax Portal/annexed with the ITR was in Form No.10BB of the Income Tax Rules. The Ld. Assessing Officer (CPC), while processing the said ITR under section 143(1) of the Act, denied the claim of exemption under section 10(23C)(via) of the Act on reasoning that the appellant assessee was not eligible fo....
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....n educational institute claiming exemption under clause (iv) or (v) or (vi) or (via) of sec. 10(23C). Sr. no. 5 of the said Form 10BB in fact reflects that the appellant is claiming exemption u/s 10(23C)(via) of the Act. The claims made in ITR and Form 10BB are therefore contradictory to each other. AO, CPC therefore rightly disallowed the claim of deduction u/s 11 made in ITR as per sec. 143(1)(a)(ii) of the Act. These grounds of appeal are therefore dismissed. 5.3 Ground number 2 is against charging the entire income / receipts of the appellant to tax. Facts involved in this issue is that the appellant had filed ITR claiming exemption of its income u/s 11. Gross receipts disclosed was Rs. 1,18,22,502/- and after claiming expenses....
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....inst income whereas Chapter VIA is solely in respect of expenses incurred against income. I am therefore of the opinion that AO, CPC rightly brought to tax the entire receipts after claim of exemption u/s 11 claimed in ITR was denied. This ground of appeal is therefore dismissed." [Emphasis supplied] 5. At the outset, the Ld. Authorized Representative ('AR'), submitted that the Ld. AO (CPC), at most, had treated the said ITR as a defective ITR under section 139(9) of the Act, if the requisite approval and audit report was not available on the Income Tax Portal/annexed with the ITR of the assessee and thereafter an opportunity to rectify the said defect/deficiency in the ITR should have been provided to the appellant assessee. Ho....
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....section 11 of the Act. 6. The Ld. AR, drawing our attention to the CBDT Circular No. 10/2019 dated 22.05.2019, submitted that the filing of the audit report in Form No. 10B was directory in nature and not mandatary; hence, the same was condonable in view of the above contentions/arguments/submissions and that was why the CBDT condoned the delay in filing the audit report in Form No. 10B for AYs 2016-17 and 2017-18 even without filing the condonation petition. However, the Circular was silent for other AYs. The Ld. AR further submitted that the filing of audit report in Form 10B was one of the requirements to avail the benefit under section 11 of the Act. The requirement of filing of Form No. 10B was directory in nature and thus, was cura....
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.... placed reliance on the decision of the Hon'ble Delhi High Court in the case of Petroleum Sports Promotion Board, 362 ITR 235. 8. On the other hand, the Ld. Senior Departmental Representative (Sr. DR), placing reliance on orders of the Authorities below, prayed for dismissal of the appeal. 9. We have heard both parties and have perused the material available on the record. We find merit in contentions/arguments/submissions of the Ld. AR that failing in filing the audit report in Form No. 10B online within the stipulated time is a curable defect which gets buttressed by the abovementioned case laws and the intent of the above-mentioned Circular issued by the CBDT. Further, we are of the considered view that the denial of the alternate ....