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2022 (6) TMI 1366 - AT - Income TaxExemption u/s 10(23C)(v) - denial of exemption as funds of the trust were not properly utilized/supervised, assessee failed to furnish Audit report in Form No. 10BB u/s 10(23C)(v) r.w.r. 16CC and assessee trust does no enjoy the registration under the provisions of section 12AA - Whether CIT(A), has erred in granting exemption u/s 11 by accepting Form No. 10 filed during the course of assessment proceedings, even though the Trust is not registered u/s 12A? - HELD THAT:- As gone through the provisions of section 10(23C)(v) which does not prescribe any stipulation, which makes the registration u/s 12AA as a condition precedent for availing the exemption u/s 10(23C)(v) of the Act. In fact, the provisions of section 11 and section 10(23C)(v) are two parallel regimes and operate independently in their respective realms. This position was clarified by CBDT Circular No.14 of 2015 dated 17.08.2015 - it is well-known canon of construction of the Statute, no words can be added to in Act or a new stipulation which is not prescribed in the statute can be read into the Act as held by the Hon’ble Supreme Court in the case of CIT vs. Vadilal Lallubhai [1972 (8) TMI 1 - SUPREME COURT] As regards to the delay in filing the audit report in the prescribed form, the Courts have taken a consistent view that filing of audit report in the prescribed form before completion of the assessment proceedings would constitute a sufficient compliance under the provisions of the Act as held in the case of Nagpur Hotel Owner’s Association [2000 (12) TMI 99 - SUPREME COURT], also by the Hon’ble Punjab & Haryana High Court in the case of National Horticulture Board [2008 (8) TMI 476 - PUNJAB AND HARYANA HIGH COURT] and in the case of Association of Corporation & Apex Societies of Handlooms [2013 (1) TMI 317 - DELHI HIGH COURT] Even the CBDT Circular No.19 of 2020 w.e.f. 03.11.2020 as amended by the CBDT Circular No.6 of 2021 dated 26.03.2021 had authorized the Commissioner of Income Tax to entertain the application belatedly upto the assessment year 2018-19. No illegality and unreasonableness in the order of the CIT(A) in reversing the findings of the AO denying the exemption u/s 10(23C)(v) - none of reasons assigned by AO while denying the claim of exemption u/s 10(23C)(v) can be sustained in the eyes of law - No merits in the grounds of appeal filed by the Revenue.
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