TaxTMI 
TaxTMI 
TaxTMI 
2025 (2) TMI 1616
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....ocessing the return of income for AY 2020-21 has considered the entire receipt of Rs. 13,06,058/- as income. Despite the fact that a sum of Rs. 12,33,052 has been spend for charitable purpose. It further alleged that during the F.Y. 2019-20 due to outbreak of Corona, the audit work could not be completed on time till extended period for filing the ITR for AY 2020-21 u/s 139(1) of the Act on 15.02.2021. As the gross receipts of the Trust exceed the limit of Rs. 2,50,000/- and the auditor is located at Pune and the Trust is located in Mumbai and due to inconvenience faced by the auditor on account of Covid Pandemic, the books of account and the record could not be made available and that is the reasons the audit report u/s 10B was uploaded on 17.02.2021 and ITR was filed on 18.02.2021 u/s 139(4) i.e. before 31.03.2021. The delay is only 3 days which is beyond the control of assessee due to outbreak of covid pandemic. Therefore, the lower appellate authority has declined to condone the delay and dismissed appeal and upheld the order of AO. 3. Aggrieved by the order of lower appellate authority, the assessee preferred the appeal before us on the following grounds:- 1. The N....
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....ied on the judgment of Hon'ble Supreme Court in Suo Moto Writ Petition (Civil) No. 3 of 2020 where vide order dated 10.01.2022, the Hon'ble Apex Court was pleased to direct the condonation of delay on account of covid pandemic and extended limitation period for judicial and quasi judicial proceedings from March 15, 2020 to February 28, 2022. The Hon'ble Supreme Court has further allowed the filing of the proceedings whatever it may be within the limitation period starting the limitation from 01.03.2022. Therefore, Ld. AR submitted that assessee be given the benefit of condonation of delay in the interest of justice and AO be directed to delete the addition while giving benefit of section 11(1) of the Act to the charitable Trust. 6. On the other hand, Ld. DR opposed the submission of Ld. AR stating that assessee should not be given the benefit of condonation of delay and requested to dismiss the appeal of the assessee. 7. We have considered the rival submissions made by Ld. AR as well as Ld. DR. On perusal of the order of Ld. CIT(A), we noticed that the observation of the Ld. CIT(A) shows that he has adopted a hyper- technical approach while considering the grounds of condonat....
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....ssee is required to furnish report of audit specified under clause (b) of subsection (1) of section 12(a), he shall furnish the same electronically. From the perusal of the above tenets of law and applicable rules, the appellant's claim that it could not file it electronically within the due date does not hold ground because the proviso given below Rule 12(2) is applicable w.e.f 01.04.2014. Moreover, the requirement of furnishing the audit report on or before the specified date has been made mandatory w.e.f AY 2020-21. Undisputedly, there has been delay in submitting the ITR and the audit report. Moreover, appellate authorities are not empowered under the Act to condone the delay in filing Form 10B. There is also no evidence whether the appellant has sought any application for condonation of delay in filing Form 10B in accordance with the procedure as described in CBDT Circular No. 02/2020 dated 03.01.2020. According to para 5 of the aforesaid circular, it has been held that where there is delay of upto 365 days in filing Form no. 10B for AY 2018-19 or for any subsequent AYs, the Commissioners of Income Tax are authorized to admit such belated applications of condonation of del....
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....question arose before us in ITA No. 2003/Mum/2024 for AY 2018-19 decided on 22.10.2024 in the case of Shri Veraimata Charitable Trust. The said question has been decided by us and the findings of the Coordinate Bench from para 9 to 14 is extracted below:- 9. In the case in hand, the assessee has filed the income tax return on 21.07.2018 and form no. 10B has been filed on 22.07.2018.For the A.Y. 2018- 19 as per Section 12A(1)(b) and Rule 17B of the Act, the form no. 10B was required to be filed on or before the due date of submitting the income tax returns u/s. 139(1) of the Act. The requirement of filing the form no. 10B one month before the filing of the income tax return became applicable w.e.f. 01.04.2023 by Finance Act of 2022. 10. The question for consideration before the Ld. coordinate bench and before us is almost similar i.e., whether the requirement of filing form no. 10B on or before the date of filing of the return is a mandatory requirement or directory in nature? 11. As is evident from the findings of the Ld.coordinate bench, various judicial pronouncements have been relied as under: a. Honourable Gujarat High court in case of Associ....