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2012 (4) TMI 611 - AT - Income TaxEligibility for claim of exemption u/s 10(22)/10(23C) - Held that:- Since the assessee was owned by the State Government, it was a lengthy process for appointment of auditor, when the list of such auditors was given only by C & AG, the assessee has to go through various formalities for appointment of auditors and fixing their remuneration, which required proper approval and sanction of various authorities. As soon as the assessee has got the registration u/s 12AA, the assessee has also started to obtain necessary approval and also the audit report in prescribed form 10B for the claim of exemption u/s 11. Thus, we found that there was reasonable cause for delay in obtaining the audit report. In the interest of justice, we condone the delay in obtaining the audit report and direct the AO to examine the assessee’s claim for exemption u/s 11 on merits, after verifying the various conditions which are required to be fulfilled, more particularly the utilization of receipts for the purpose of objects of society as discussed herein above to the extent of 85 %. Assessee is also directed to submit the other details as desired by the AO for verifying its claim of exemption u/s 11 of the Income-tax Act, 1961
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