TaxTMI 
TaxTMI 
2026 (9) TMI 993
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....er section 154 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') by the CPC, (hereinafter referred to as the 'AO') pertaining to Assessment Year (A.Y.) 2018-19. 2. The assessee has raised the following grounds of appeal: "1. That the learned Commissioner of Income Tax (Appeals), AddI/JCIT (A)-2, Coimbatore has erred both in law and on facts in upholding the determination of the income of the appellant trust at Rs. 12,99,869/- in an order dated 11.12.2019 u/s 154 of the Act as against declared Nil income u/s 143(1) of the Act was illegal, invalid and without jurisdiction and deserved to be quashed as such. 2. That the order made by the learned Commissioner of Income Tax (Appeals) by dismissing the appeal....
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....to the extent it does not exceed 15 per cent of income derived from property held in trust/institution u/s 11(1)(a)/11(1)(b) of the Act. 6. That in any case and without prejudice the learned Commissioner of Income Tax (Appeals) has failed to appreciate that had the expenditure incurred alongwith depreciation been allowed as such, income computed is excessive; and thus not in accordance with law. 7. That the learned Commissioner of Income Tax (Appeals) has also erred both in law and on facts in upholding the demand aggregating income tax liability at Rs. 1,78,316/-, interest at Rs. 1,443/- u/s 234A of the Act Rs. 20,202/-u/s 234B of the Act and Rs. 7,288/- u/s 234C of the Act and Rs 5,000/-u/s 234F of the Act as against dec....
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....ccordance with law." 3. Brief facts of the case are that the assessee is a charitable trust and has been registered u/s 12A of the Act, vide order of DIT(E) dated 6.10.1994. It filed return for A.Y. 2018-19 on 20.09.2018 declaring NIL income. Since audit report in form no. 10B was not filed alongwith the return, the assessee's claim of exemption u/s 11 was disallowed u/s 143(1) of the Act by the CPC and income was assessed of Rs. 12,99,869/-. 3.1 Aggrieved, the assessee filed an application for rectification u/s 154 of the Act which was also rejected. Further aggrieved, the assessee filed an appeal before the CIT(A). The CIT(A) dismissed the assessee's appeal after holding that Form no. 10B was filed belatedly and that he had no....
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....o file the audit report in Form 10B before the due date as per Rule 12A(1)(b) of the Rules. I observed that the above conditions of filing the Form 10B was relaxed by the CBDT in the earlier assessment years, therefore, it clearly shows that it is only directory in nature and not mandatory, since, it is in compliance with Rules framed for availing the benefit under the provisions of Section 11 and it is held that to be directory in nature. I noticed that assessee relied on the decision of Hon'ble Madras High Court in the case of Shri Chandraprabhuji Maharaj Jain Juna Mandir Trust (supra), wherein it is held as under: "8. As noted by us earlier, the assessee filed the return of income for the assessment year under consideration on 0....
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....case of CIT-IV vs. Xavier Kelavani Mandal (P.) Ltd. (supra), wherein it is held as under: "4. The question whether it is permissible to the assessee to produce the audit report at the appellate stage, has already been answered by this court in CIT v. Gujarat Oil & Allied Industries Ltd. [1993] 201 ITR 325 (Guj.), wherein it is held that the provision regarding furnishing of audit report along with the return has to be treated as a procedural provision, It is directory in nature and its substantial compliance would suffice. In that case, the assessee had not produced the audit report along with the return of income, but produced before completion of the assessment. The Punjab and Haryana High Court in CIT v. Shahzadanand Charity Tru....