TaxTMI 
TaxTMI 
2026 (7) TMI 1978
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....ating from the order of the AO passed u/s 154 of the Act dated 12/02/2025. 2. Both the appeals filed are in respect to the common dispute relating to disallowance of claim for exemption u/s 10(23C) for non filing of audit report in Form 10Bwhich was supposed to have been e-filed within the stipulated time along with the return or before the filing of the same, as per provisions of section 12A(1)(b). 3. Brief facts are that the assessee under the name of " DAV Montessory School Samity " is registered under section 12A(1)(ac)(i) vide order dated 24/09/2021 covering the period AY 2022-23 to AY 2026-27 (Form 10AC), which succeeds the earlier registration u/s 12AA dated 07/06/2010 ( as per copy of certificate contained in pb 26). 4. The....
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....rcumstances of the case the Ld. Assistant Director of Income Tax, CPC is wrong, unjust and has erred in law and facts in disallowing the benefit of section 10(23C)(vi) of the Act and making addition amounting to Rs. 2,30,00,958/- as per provisions of Income Tax Act, 1961. Kindly direct to allow the expenditure to assessee. 3. That the appellant craves permission to add to or amend to any of the above grounds of appeal or to withdraw any of them." 7. Meanwhile, the assessee filed a rectification request u/s 154, on 12th February, 2025, in ITR-7( rectification ) seeking rectification of the intimation u/s 143(1) dated 27th August, 2020, which has been rejected vide a rectification order of even date 12th February, 2025, against wh....
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....t the appellant craves permission to add to or amend to any of the above grounds of appeal or to withdraw any of them." 9. Condonation of delay :In course of hearing before the tribunal the ld. AR admitted that the appeal in ITA No. 1719/JP/2026 is belatedly filed by 71 days. He has filed an application for condonation of delay. Considering the submissions made by the assessee along with an affidavit explaining the delay we condone the delay and admit this appeal for hearing on merits. 10. The ld. AR submitted that two appeals are filed one is travelled against the intimation u/s 143(1) dated 27/08/2020, and the other appeal has travelled against rectification order u/s 154 dated 12/02/2025, but the issues disputed in both the appeals....
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....rm 10B was available before the AO, on the date on which the return has been processed u/s 143(1) on 27/08/2020. 12. We have heard the rival submissions and the materials on record and we find that both the appeals before the tribunal relates to only one single issue of non filing of audit report in Form 10B within the stipulated time frame whereby the exemptions claimed by the assessee in ITR 7 has not been allowed. 13. Before proceeding further, we note that there are parallel proceedings initiated in the instant case, which relates to the same issue of belated filing of audit report in form 10B. 13.1 As such in order to prevent contradictory rulings and also considering the fact that the first appeal proceedings connected to the....
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.... of income under Section 143(1) of the Act. The conditions for claiming exemption under Section 11 was satisfied. Although the requirement of furnishing report was mandatory, filing thereof is a procedural aspect. Even though the Form 10B was filed at a later stage, when it was part of the record of the Assessing Officer in course of the processing of the return of income, the Assessing Officer could not have denied undefined the exemption claimed by the assessee under Sections 11(1) and 11(2) on the ground that the audit report was not filed. 5.6 The tribunal further committed an error in appreciating the import of Section 119 2(b) of the Act inasmuch as the application contemplated thereunder is only additional remedy for the ass....