TaxTMI 
TaxTMI 
2026 (4) TMI 470
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.... Learned CIT(A) had dismissed the appeal of the Assessee against the Order, dated 15/03/2022, passed under Section 154 of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'], for the Assessment Year 2021-2022. 2. The Assessee has raised following grounds of appeal: "1. That the Ld. CIT(A) erred in law and on facts in confirming the disallowance of exemption under section 11 of The Income Tax Act, 1961. 2. The CIT(A) erred in holding that there was alleged delay in filing Form 10B, ignoring that the return filing due date stood extended to 15.03.2022 by CBDT Circular No. 01/2022 3. That the Ld. CIT(A) ought to have held that Form 10B was in fact uploaded within the extended time and due to the techni....
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....he Assessment Year 2021-22- reg. On consideration of difficulties reported by the taxpayers and other stakeholders due to COVID and in electronic filing of various reports of audit under the provisions of the Income-tax Act,1961 (Act), the Central Board of Direct Taxes (CBDT), in exercise of its powers under Section 119 of the Act, provides relaxation in respect of the following compliances: 1. The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which was 30th September 2021, in the case of assessee's referred in clause (a) of Explanation 2 to subsection (1) of section 139 of the Act, as extended to 31 st October 2021 and 15t January 2022 by Circular No.9/2021 dated 2....
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.... Circular No.17/2021 dated 09.09.2021 respectively, is hereby further extended to 15th March, 2022. Clarification 1: It is clarified that this extension shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds one lakh rupees. Clarification 2: For the purpose of Clarification 1, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him under section 140A of the Act within the due date (without extension under Circular No.9/2021, Circular No.17/2021 and this Circular) provided in that Act, shall be deeme....
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....on of the Revenue is that the Form 10B was finally uploaded on 19/02/2022 and therefore, 19/02/2022 should be taken as date of filing Form 10B. 8. On perusal of record we find that there is no dispute as to the fact that on 11/01/2022, the chartered accountant had 'accepted the request for F10B for the Assessment Year 2021'. The Learned CIT(A) has observed that mere acceptance of assignment to file Form 10B by the chartered accountant does not constitute filing of audit report. The Learned CIT(A) has also noted that no proof of filing Form 10B on 11/01/2022 was furnished by the Assessee. 9. We note that the Assessee had explained before the Learned CIT(A) that the Form 10B could not be uploaded but ' due to technical issues in the new....
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....ue to technical issues in the Income Tax Website was not approved even after submission. Hence the form was resubmitted. As it is a technical issue of website exemption should be allowed" 12. After considering the above explanation, the return of the Assessee was processed by the Central Processing Centre - Assessing Officer [for short 'CPC - Assessing Officer'] accepting the returned income and allowing the exemption claimed by the Assessee under Section 11 of the Act vide Intimation Order, dated 10/08/2022, issued under Section 143(1) of the Act. 13. We note that, thereafter, vide suo-moto Rectification Order, dated 13/02/2023, the CPC-Assessing Officer rectified the above Intimation Order, dated 10/08/2022, disallowing the exemptio....
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....voking the provisions contained in Section 154 of the Act; and that too without granting the Assessee any opportunity of being heard. It is not the case of the Revenue that the Assessee had acted in a malafide manner. On the other hand, the material on record shows that the CPC - Assessing Officer had accepted the contention of the Assessee that Form 10B for Assessment Year 2021-2022 was originally filled on 11/01/2022. In case the CPC-Assessing Officer was to dispute the aforesaid position, and contend that Form 10B was filed by the Assessee belatedly on 18/02/2022, the same would amount to adjudicating a disputed question of fact and review of the earlier decision to accept 11/01/2022 as the date of filing Form 10B. In our view, having ca....