2025 (3) TMI 2026

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.... income alongwith audit report in Form 10B for the assessment year 2022-23 declaring total income of the assessee as 'NIL' after claiming exemption under section 11 of the Act. The return was processed under section 143(1) of the Act and assessed total income at Rs. 34,00,000/- saying that Form 10B had not been e-filed within the prescribed due date, i.e. one month prior to the due date of filing of the return of income. 3. Aggrieved by the intimation issued by the CPC under section 143(1) of the Act, the assessee-appellant filed an appeal before the ld. CIT(Appeals) and the ld. Addl./JCIT(Appeals) after considering the submissions of the assessee dismissed the appeal saying that the ld. CIT(Appeals) does not have any power to condone th....

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....ssessment is procedural one and that the exemption cannot be denied as long as the report was available to the A.O. before the assessment was completed. (4) That, without any prejudice to the above, the Ld. CIT(A) in view of series of judicial pronouncements ought to have considered and decided as an appellate authority the issue on the condonation of delay of merely 28 days in filing Form 10B and allowing the exemption claimed u/s 11 of the Act instead of dismissing the appeal by stating the avenue for relief by filing petition u/s 119(2)(b) of the Act before the competent authority. (5) That, therefore, the order of the CIT(A) should, accordingly, be quashed/modified and your appellant be given such relief or reliefs as ....

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....t. He also relied on the decision of the Hon'ble High Court of Gujarat in the case of Sarvodaya Charitable Trust -vs.- ITO (Exemption) reported in (2021) 125 taxmann.com 75, wherein it was held that benefit of exemption should not be denied merely on account of delay in filing the audit report. The assessee produced the same before completion of the assessment, therefore, he pleaded to set aside the orders passed by the CPC and ld. Addl. JCIT(Appeals). 6. On the other hand, it was the submission of the ld. Departmental Representative that in case of delay in filing Form No. 9A and Form No. 10 for the assessment year 2016-17 may be condoned under section 119(2)(b) of the Act in view of the CBDT Circular vide No. 7/2018 dated 20th December....