2026 (2) TMI 197

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....dated 21.04.2021 u/s 143(3) r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by the Faceless Assessing Officer, National e-Assessment Centre, Delhi for AY: 2018-19. 2. None appeared for the assessee at the time of hearing while notice have been repeatedly issued thus no more opportunity is justified. The ld. DR was heard who has also filed written submissions. 3. The assessee is an educational trust filled its return of income u/s 139(4) for the A.Y. 2018-19 on 30.03.2019 with NIL income. The case was selected for Complete Scrutiny assessment under the e-assessment Scheme, 2019 on the issue- "Expenditure for Charitable or Religious Purposes". The assessment in the case was completed assessing income....

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....com 75(Gujarat) dated 09.12.2020 wherein Para 32 of the judgment it has held as follows;- (i) The provision regarding furnishing of audit report with the return has to be treated as a procedural proviso. (ii) It is directory in nature and its substantial compliance would suffice. In that case, the assessee had not produced the audit report along with the return of income but produced the same before the completion of the assessment. (iii) The benefit of exemption should not be denied merely on account of delay in furnishing the same and it is permissible for the assessee to produce the audit report at a later stage either before the Income-tax officer or before the appellate authority by assigning sufficient cause....

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....as been mentioned that, the failure to furnish such report in the prescribed form along with the return of income results in disentitlement of the trust or institution from claiming exemption under sections 11 and 12 of the Act. The relevant extract of para 2 of CBDT Circular No. 2/2020 dated 3rd January, 2020, is reproduced verbatim hereunder: - "As per Rule 17B of the Income-tax Rules, 1962 (hereafter 'Rules) the audit report of the accounts of such a trust or institution is to be furnished in Form No. 10B. Further, as per Rule 12(2) of the Rules, such audit report is to be furnished electronically. The failure to furnish such report in the prescribed form along with the return of income results in disentitlement of ....