TaxTMI 
TaxTMI 
2025 (4) TMI 1790
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....ading of audit report in Form 10B was directory in nature and therefore, the delay in electronically uploading the audit report could not have resulted into denial of exemption u/s 11 in view of the law laid down by various Hon'ble Courts and thus, the disallowance u/s 11 made on the above debatable issue, was outside the scope of permissible adjustments u/s 143(1) of the Act. 3] The learned CIT(A) further erred in not appreciating that there was a reasonable cause which resulted into delay in filing the audit report in Form 10B and similar delay in filing the Audit Report for A.Y. 2017-18 and 2019-20 was condoned by the Dept. and hence, the deduction u/s 11 may be allowed by Hon'ble ITAT in view of the wide powers vested with Hon'ble Tribunal to do justice. 4] Without prejudice to the above grounds, assuming without admitting that the exemption u/s 11 is not allowable to the appellant trust, still it is submitted that the entire gross receipts of Rs. 3,79,22,156 could not have been taxed as income without allowing the deduction of Rs. 3,75,46,321 towards expenditure incurred for earning such receipts and only net surplus of Rs. 3,75,835 could have bee....
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.... section 11 of the IT Act to the assessee. 6. Ld. DR appearing from the side of the Revenue supported the orders passed by the subordinate authorities and requested to confirm the same. 7. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book and copy of case laws furnished by the assessee. In this regard, we find that admittedly the assessee trust uploaded the audit report in Form 10B belatedly i.e. on 05.10.2020 however, the income tax return was filed in time and even the audit report in form 10B was also obtained within the prescribed time limit. We also find that the intimation order u/s 143(1) was passed on 17.10.2019 denying the benefit of section 11 regarding application of income for charitable purposes since CPC did not find the audit report in Form 10B. Subsequently, the assessee filed rectification u/s 154 which was also rejected. It was also the contention of Ld. AR that Ld. CIT(A) did not provided proper opportunity of hearing since only two notices were issued fixing the date of hearing in short span of 10 days only however due to some misunderstanding the notices of hearing could not be seen by the....
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....reported in [2024] 161 taxmann.com 544 (Orissa) has held that the oversight in not filing Form-10B within the due date was to be condoned and the exemption was to be allowed and granted. Also, the Hon'ble Telangana High Court in the case of Global Organization for Development vs. Commissioner of Income-tax (Exemption) reported in [2024] 162 taxmann.com 633 (Telangana) has held that the delay on the part of the assessee in submitting Form-10B was to be condoned and the matter remanded back to the file of the AO for passing appropriate order on merits. Similarly, the Hon'ble Bombay High Court in the case of Al Jamia Mohammediyah Education Society vs. Commissioner of Income tax (Exemptions) reported in [2024] 162 taxmann.com 114 (Bombay) has held that where the assessee Trust belatedly submitted Form-10B, along with return, on account of oversight by the Chartered Accountant, the delay in filing of Form-10B deserves to be condoned. In fact, some relevant portions from the said order deserves to be extracted as under: "● Admittedly, Petitioner is a charitable trust and had been filing its returns and Form 10B for AY 2015-16, for AY 2017-18 to AY 2021-22 within th....
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.... powers conferred. [Para 9] ● In the circumstances, this Writ Petition has to be allowed and is hereby allowed in terms of prayer clause. ● Since the delay has been condoned, Respondent shall process Petitioner's returns in accordance with law by giving effect to this order on the basis that Form No.10B has been filed within time. [Para 11]" 4. Considering the discussions made above, the delay in filing of Form10B is hereby condoned and it is directed that the appellant be allowed exemption as would be due to him as per law. The ld. AO is directed accordingly." 05. Similar issue was also deal with by this Tribunal in Bangarh Educational Welfare Trust (supra), where also the facts are almost identical and the assessee was given relief by this Tribunal observing as under: - "12. Now, the second reason for which lower authorities have denied the deduction u/s 11 of the Act is of filing the belated audit report on form 10B of the Act. Now, clause (b) of section 12A(1) of the Act provides for a condition that if the income of a trust exceeds a maximum amount which is not chargeable to tax in the previous year the account have to b....
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....the ratio laid down in the Hon'ble Gujarat High Court in the case of Sarvodaya Charitable Trust vs. ITO(Exemption) (supra), we find that though the audit report has been uploaded after the filing of return of income but the said report has been signed by the auditor on 28.10.2018 and the copy of this report is placed at 40- 41 of paper book and the date of audit report is prior to the filing of the return of income, therefore, it is presumed that conducting of audit for preparation of audit report is before e-filing of the return of income but as claimed by the assessee due to technical glitches, the report was uploaded after filing the return of income. 15. Though the Hon'ble Court holds that the report should be considered even filed in the course of assessment proceedings, or before in appellate authority, however, we notice that in the instant case, the case of the assessee was not selected for scrutiny assessment and it was mere processing of return by the computer with the set program. Had it been the case of scrutiny proceeding u/s 143(3) of the Act, the case could have been different. The ld. A.O may had an opportunity to go through the audit report. But still when....