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2022 (8) TMI 520 - ITAT AHMEDABADDisallowance of exemption u/s 11/12 - no evidence was filed by the assessee demonstrating that the form 10B was filed electronically - AR before us contended that the assessee has made sufficient compliance by furnishing the audit report in form 10B in physical form - benefit of exemption u/s 11 cannot be denied merely on the reasoning that such audit report was not filed electronically - HELD THAT:- Where Form 10B is uploaded after the submission of Return of Income, returns are processed without giving benefit of sec. 11 of the Act. The total income becomes subjected to tax without providing any benefit under section 11 of the Act. In the present case, the form 10B was not filed by the assessee electronically but the same was filed before the Ld. CIT-A physically. CIT-A did not consider the same. In this regard, we refer to the decision in CIT v. Gujarat Oil and Allied Industries Ltd.[1992 (9) TMI 67 - GUJARAT HIGH COURT] wherein it is held that the provision regarding furnishing of audit report with the return has to be treated as a procedural proviso. It is directory in nature and its substantial compliance would suffice. In that case, the assessee had not produced the audit report along with the return of income but produced the same before the completion of the assessment - benefit of exemption should not be denied merely on account of delay in furnishing the same and it is permissible for the assessee to produce the audit report at a later stage either before the Income-tax Officer or before the appellate authority by assigning sufficient cause - we hold that the substantial compliance has been made by the assessee by furnishing the audit report in the requisite form before the Ld. CIT-A. Thus, we set aside the order of the Ld. CIT-A and direct the AO to allow the benefit available to the assessee under section 11 of the Act as per the provisions of law. Hence, the ground of appeal of the assessee is allowed.
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