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2021 (1) TMI 1004 - AT - Income TaxRectification u/s 154 - Exemption u/s 11 denied - audit report in Form no.10B of the Act was filed belatedly - as per assessee since 85% out of the income received has been applied for the objects of the Trust, exemption u/s 11 of the Act is available - HELD THAT:- As decided in KASTURI FOUNDATION [2020 (11) TMI 962 - ITAT MUMBAI] the claim of the assessee that it has obtained the audit report prior to the date of filing of return of income and has filed audit report before the due date of return of income under section 139(1) of the Act has not been controverted by the learned Departmental Representative. Commissioner (Appeals) has also upheld the disallowance of exemption by simply stating that it is not a rectifiable mistake under section 154 of the Act. In our view, when the assessee has complied with the statutory provisions in terms of the CBDT Circular, the delay if any, in filing the audit report should have been condoned. In view of the aforesaid, we delete the disallowance made and allow assessee’s claim of exemption under section 11 of the Act. Grounds raised by the assessee are allowed.
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