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2021 (9) TMI 689 - AT - Income TaxExemption u/s 11 denied - delay in filing Form no. 10 - computation of the income not allowing the accumulation under section 11(2) condonation of delay of Form no. 10 order - HELD THAT:- As regards the contention regarding the ld. CIT(A) having ignored the provisions of section 12A(1)(b) of the Act, this provision states that the provisions of sections 11 and 12 of the Act shall not apply in relation to the income of any Trust or Institution unless, in a case where the total income of the Trust or Institution as computed under the Income Tax Act without giving effect to the provisions of sections 11 and 12 of the Act exceeds the maximum amount which is not chargeable to income-tax in any previous year, the account of the Trust or Institution for that year have been audited by an Accountant as defined in the Explanation below section 288(2) of the Act, before the specified date referred to in section 44AB of the Act and the person in receipt of the income furnishes by that date the report of such audit in the prescribed form duly signed and verified by such Accountant and setting forth such particulars as may be prescribed. The order dated 19.2.2019 passed by the CIT (Exemptions) under section 119(2)(b) of the Act is part of record and the same has been relied on by the ld. CIT(A) in holding that the addition made by the Assessing Officer by denying the accumulation under section 11(2) of the Act, had become infructuous. It was, therefore, the ld. CIT(A) directed the Assessing Officer to allow the benefit of section 11 of the Act to the assessee and compute the income after allowing the accumulation under section 11(2) of the Act. Department's objection that the audit report in Form no. 10B was also delayed and such delay had neither been applied for condonation of delay nor been condoned, it was the submission of the assessee that the delay in filing Form no. 10B has been condoned, in general, by the CBDT, vide Circular No. 10/2019, dated 22.5.2019, it has been stated at the Bar by the ld. Counsel for the assessee that the Audit Report in Form no. 10B had been e-filed on 4.2.2017 by the Auditor within the time prescribed under the Act, i.e., before the time prescribed for filing the return of income. The same was e-verified on 20.4.2017, as available from the e-verification screen-shot, and as also available from the website of the Department. A copy of such e-verification screen-shot, having acknowledgement No. 761769971200417, has been placed on record. Therefore, this objection is also of no aid to the Department and the same is also rejected. - Decided against revenue.
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