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2023 (5) TMI 313 - AT - Income TaxCondonation of delay of 107 days filling appeal before CIT-A - CIT-A not condoning the delay in filing first-appeal before him - Rectification u/s 154 - HELD THAT:- From a reading of section 154(8) that the AO was having a time-limit of 6 months to pass order on such application of assessee. Assessee was justified in waiting for about 5 months and certain days for the outcome of rectification and thereafter filing first-appeal when there was no response from AO. Thus, there was certainly a reasonable cause on the part of assessee in filing-appeal belatedly. DR does not have any reason to negate/contradict this. Although the CIT(A) has taken a view to dismiss the first appeal of assessee; but in the very same order he has also decided the first appeal on merit at length. Assessee has a strong case for condonation of delay in filing first-appeal before Ld. CIT(A). We accept assessee’s submissions and reverse the decision of dismissal taken by Ld. CIT(A). The assessee succeeds in this ground. Exemption u/s 11/12 - Entitlement of exemption as claimed in the return of income, when the audit-report (Form No. 10B) was filed belatedly after processing of return u/s 143(1)? - HELD THAT:- We are convinced that the controversy is directly settled in favour of assessee by decision in Savitri Foundation [2022 (8) TMI 1372 - ITAT MUMBAI] where as following the decision of Mumbai Metropolitan Regional Iron & Steel Market Committee[2015 (4) TMI 512 - BOMBAY HIGH COURT] held that late filing of required documents would not disentitle the assessee from availing benefit of section 11 of the Act. We are of the view that in the present case, the assessee can’t be denied the benefit of exemption u/s 11 as claimed in the return of income for mere delay in filing of audit-report. We, therefore, deem it fit to remand this matter back to the file of AO for a fresh assessment after considering the audit-report filed by assessee, in accordance with law. These grounds are accordingly allowed.
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