TaxTMI 
TaxTMI 
2026 (1) TMI 705
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....nd relates to Assessment Year (A.Y.) 2017-18. 2. The grounds of appeal raised by the assessee are as under: "1. The ld. CIT(Appeals) has erred in law and on facts of the case, in confining the direction Circular No.10/2019 in taking cognizance of Form 10B for the purpose of exemption u/s 11. 2. The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing. if need arise." 3. The appeal is noted to be delayed in filing by 368 days. The assessee has filed an application seeking condonation of delay stating that there was no default on the part of the assessee and the reason for the delay was that the assessee followed due remedy available to it in law but due to the fact that events tur....
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.... Assessee filed Form 10B and followed by rectification request u/s 154. Pg-6 to 8 hereafter 07.06.2019 CPC rejected rectification u/s 154. Appeal Papers 17.07.2019 Assessee filed appeal before ld. CIT(A) against the rectification order dated 07.06.2019. Form 35 24.07.2019 Assessee also filed rectification request u/s 154 again. Pg-9 hereafter 06.08.2019 CPC allowed exemption u/s 11 in rectification order u/s 154. Pg-9 to 19 hereafter 15.06.2024 CIT(A) partly allowed the appeal with specific direction to verify whether delay in filing Form 10B stands condoned as per the CBDT Circular No. 10/2019 dated 22.05.2019, which condones delay in filing Form 10B for Α.Υ. 2017-18 if it is file....
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.... above mentioned facts and circumstances, that, the delay in filing appeal before the Hon'ble ITAT has taken place. It may kindly be appreciated that, there was no mala fide intention in delaying the filing of appeal and the lapse has occurred because of bona fide reasons as have been stated herein above. 6. In view of the above facts and circumstances, it is most humbly prayed that, the delay may kindly be condoned to further the cause the substantial justice and the appeal may kindly be adjudicated on the merits of the case. 7. I say that whatever I have stated above is true to the best of my knowledge, information and belief and I belleve the same to be true." 4. Ld. DR though did not deny the fact of the chain o....
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....ordingly consider the claim of the assessee to exemption of its income. 6. The Ld. Counsel for the assessee has pleaded that since the CPC had already allowed its claim of exemption in the second rectification application filed and even the Ld. CIT(A) had held in his order that the filing of Form 10B was only a procedural requirement and directory in nature and the assessee was entitled to claim exemption, the assessee believed that the Ld. CIT(A) had ruled in its favour. 7. I see no reason to disagree with the assessee. There is no denying the facts as aforestated by the assessee. With the CPC allowing assesses claim of exemption and the Ld.CIT(A) also categorically stating so, it is not in any way unreasonable to believe that the as....
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....er of fact that in the present case the audit report was available before the AO at the time of passing of the rectification order u/s. 154 of the Act and he further specifically noted that in these facts the AO could not have ignored the audit report in Form 10B which had been belatedly furnished. His categorical findings in this regard are contained at para 6.2 of the order as under: "6.2 It is a settled position of law that the requirement of furnishing the Audit Report under section 12A (b) is only a procedural requirement and therefore directory in nature. It is a sufficient compliance with the procedure, if the Audit Report is filed at any stage before the completion of assessment. In the instant case, the Audit Report was av....
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....ot 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 available with the Assessing Officer before assessment proceedings take place, the requirement of law is satisfied. In the present case also, the assessee obtained the Audit Report dated 31.10.2018 from the Auditor but cou....