TaxTMI 
TaxTMI 
2024 (1) TMI 1524
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....mption of Rs. 15,37,255/- under Section 11 of the Act ? 2. Whether, on facts and in circumstances of the case and in law, Ld. Assessing Officer has erred in making adjustment of Rs. 15,37,255/- under Section 143(1) of the act ? 3. The assessee filed return of income for Assessment Year 2018-19 on 31.12.2018 declaring total income at Rs. Nil after claiming exemption of Rs. 15,37,255/- under section 11 of the Income Tax Act, 1961. The return of income was processed under Section 143(1) of the Income Tax Act, 1961 on 30.09.2019 thereby disallowing the claimed exemption of Rs. 15,37,255/- under Section 11 of the Act. The reason for the aforesaid disallowance was recorded by the CPC as under :- "Assessee approved under Secti....
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....me-tax portal ITR-V along with ITR Form Annx B 26/07/2019 Notice u/s 143(1 )(a) is issued by CPC, Bengaluru Notice issued u/s 143(1)(a) Annx C N1 30/09/2019 Intimation u/s 143(1) is issued by CPC, Bengaluru Intimation u/s 143(1) Annx D 30/09/2020 Rectification application is filed vide reference number 609619060300920 Acknowledgement receipt along with ITR V & ITR Form Annx E N2 30/09/2020 Rectification application is filed vide reference number 609903370300920 Acknowledgement receipt along with ITR V & ITR Form Annx F N3 30/09/2020 Audit report of appellant for AY 2018-19 filed on the Incometax portal by auditor of appellant (i.e. CA Vishal D Langalia)....
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.... obtained by the appellant as on 31st October, 2018. Meaning thereby, it was very well obtained by appellant before the return filing (i.e. 31st December, 2018) but, it was filed late by the auditor (i.e. on 30th September, 2020). Thus, from what has been stated above, it is apparent that exemption of Rs. 15,37,255/- claimed u/s 11 is not allowed because the audit report of trust (i.e. Form 10B) is not filed along with the return of the income. 7. The Ld. AR relied upon the decision of Hon'ble Gujarat High Court in case of Association of Indian Panelboard Manufacturer vs. DCIT (2023) E10L-900-HC Ahm- IT. The Ld. AR relied upon the following decisions: a) JCIT vs. Gujarat Energy Development Agency (ITA No. 209/Ahd/2022 ....
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....der of the CIT(A). 10. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the observation of the CIT(A) that there was an additional ground appears to be not tenable. Besides this, the assessee after obtaining the Audit Report during the course of assessment proceedings has filed the Audit Report and non filing of the Audit Report by the Auditor cannot be termed as assessee's lacuna. The Hon'ble Gujarat High Court in the case of Association of Indian Panelboard Manufacturer (supra) has categorically mentioned that filing of Audit Report is held to be substantive requirement but not the nodal stage of filing which is procedure once the Audit Report in Form 12B is filed to be avai....