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2023 (12) TMI 640 - ITAT CHENNAIRectification intimation issued by CPC Bangalore u/s 154 denying exemption u/s. 11 - Audit Report in Form No.10B was not filed by the assessee along with return of income - HELD THAT:- 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). 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. 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 was uploaded after filing of return of income. The facts of the present case are covered by the decision of Ahmadabad Tribunal in the case of Shree Charitable Trusts[2023 (7) TMI 282 - ITAT AHMEDABAD] as relying on ASSOCIATION OF INDIAN PANELBOARD MANUFACTURER [2023 (3) TMI 1374 - GUJARAT HIGH COURT] held that filing of Form No.10B would be directory in nature, as such the Assessing Officer are not powerless to allow an assessee to file Audit Report, it not filed along with return, at any time before completion of assessment. Aslo in SHRI CHANDRAPRABHUJI MAHARAJ JAIN JUNA MANDIR TRUST [2019 (8) TMI 363 - MADRAS HIGH COURT] filing of Form No.10 for accumulation of income u/s 11(2) which was filed beyond due date could not disentitle the trust from exemption claimed u/s 11. Thus we direct jurisdictional AO to verify the Form 10B filed by the assessee and allow the claim of exemption uls.11 of the Act. Appeal stand allowed for statistical purposes.
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