TaxTMI 
TaxTMI 
2025 (3) TMI 2149
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....18.05.2023, making certain adjustments / raising tax payable over and above the returned income/ tax payable. In the intimation u/s. 143(1) dated 04.04.2023, AO, CPC disallowed the exemption claimed by the assessee u/s 11 of the Act due to the reason that audit report in Form 10B was not filed within due date as required as per section 12A(1)(b)(ii) of the Act. Consequently the entire receipts of Rs. 3,08,44,889/- was taxed at maximum marginal rate. The assessee had filed a rectification request before CPC, to rectify the mistake u/s 154. But CPC passed order u/s 154 dated 18.05.2023 rejecting assessee's claim and upholding the adjustment made as per intimation u/s 143(1) dated 04.04.2023. Aggrieved, the assessee preferred appeal before Ld.CIT(A). 4. Before the ld. CIT(A), assessee has raised 18 argumentative grounds as mentioned at para 3 of the order of ld.CIT(A). However, the ld. CIT(A) has dismissed the appeal by holding as under: I have carefully gone through the intimation u/s 143(1), order u/s 154, the grounds of appeal and submission made by the appellant in this regard. Briefly stating facts of the case is that the appellant filed return of income which was pro....
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....v College of Excellence Educational Trust Vs Assistant Commissioner of Income Tax (Exemptions) ITA No. 1433/Chny/2024 Assessment Year 2022-23 order dated 04.09.2024 and also contended that the delayed filing of the Form 10B may be condoned as it is not mandatory but directory to file in time. 7. The ld. DR relied upon the orders of the lower authorities and submitted that the assessee could have preferred petition for condonation of delay in filing Form 10B before the ld.PCIT. 8. We have heard the rival submissions, perused the record and case laws cited at bar. Recently the Hon'ble Delhi High Court in the case of Associated Chambers of Commerce and Industry of India Vs Deputy Commissioner of Income-tax [2024] 165 taxmann.com 510 (Delhi)/[2024] 300 Taxman 410 (Delhi) held as under: "30. Of equal significance is the judgment rendered by a Division Bench of our Court in Commissioner of Income-tax v. Contimeters Electricals (P.) Ltd. 2008 SCC Online Delhi 1458/[2009] 178 Taxman 422/317 ITR 249 (Delhi) and where the Court had observed:- "8. In view of this long line of decisions of various High Courts in considering the provisions of section 80J(6A) which are si....
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.... 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 assessee which could not be said to be compulsorily resorted to by the assessee. The circular No.7/18 dated 20.12.2018 issued under Section 119 of the Act could not be, therefore said to have taken away the appellate remedy. 5.7 The tribunal misdirected itself in yet another way when it observed that The Finance Act, 2015 with effect from 1.4.2016, that is from assessment year 2016-17 changed the legal position. There is no such change which could be said to have altered the legal position. The only change is with regard to compulsory filing of audit report in Form 10B in electronically form which is made mandatory under Rule 12(2) of the Income Tax Rules, 1962 but there is no change with regard to the substantive law about filing of audit report as stated above. 6. The moot aspect thus centres around to the requirement of the availability of the audit report when the assessment was undertaken by the Assessing Officer even though the same may not have be....
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.... 05/11/2022, which is much before the end of the actual due date prescribed i.e. 07/11/2022 for the A.Y. 2022-23. Considering the reliance placed by the assessee on this Tribunal decision in Sri Vetri Vinayagar Educational Trust Vs. ITO(Supra), where the delay in filing the audit report was condoned by holding as under: "5. The undisputed fact that emerges is that the assessee has filed Audit Report much before the processing of return of income by CPC u/s 143(1). The Audit Report was very much available at the time of processing of return of income. The CPC have not taken the same into account while processing return of income u/s 143(1) as well as while dealing with 154 rectification application filed by the assessee. The Ld. CIT(A) merely upheld the rectification intimation on the ground the rectification application filed by the assessee would not fall within the ambit of Sec.154 of the Act overlooking the fact that the grievance of the assessee was not even looked into by CPC in the rectification application. Apparently, the applicable exemption has been denied due to the fact that the assessee did not furnish details of audit in the return of income and Form No.10B w....